Yael Kogan

A law firm appealed an application judge’s decision interpreting a contingency fee retainer agreement and rejecting its claim to a share of damages awarded on appeal.

The client had retained new counsel for the appeal, which resulted in a substantial damages award after an unsuccessful trial.

The firm argued it was entitled to fees under the retainer or alternatively on a quantum meruit basis.

The Court of Appeal held that the retainer expressly limited fee entitlement to damages recovered by settlement or judgment at trial and did not include recovery obtained on appeal.

The court also held that quantum meruit relief was unavailable where the parties had expressly defined the circumstances of payment.

The appeal was dismissed.

This decision certifies a class action against the Province of Ontario regarding the issuance of "Birth Alerts" by Ontario children's aid societies (CASs), but declines to certify the action against the CASs themselves.

The court finds that the claims against the CASs suffer from the "Ragoonanan problem"—the lack of a representative plaintiff with a claim against each defendant—and that the CASs acted independently, not collectively.

The action against Ontario, however, is certified on the basis of negligence and breaches of sections 7 and 15 of the Charter, as the Province had oversight authority and failed to act to stop the practice despite being able to do so.

The court sets out the certified class, common issues, and clarifies the preferable procedure for such claims.