The plaintiff brought a proposed class action in Ontario against McDonald's and Simon Marketing Inc. alleging wrongdoing in relation to promotional contests.
The defendants moved to dismiss or stay the action on the basis that the claims had been finally disposed of in an Illinois class action settlement.
The motion judge refused to stay or dismiss the action, finding that the notice given to the Canadian members of the plaintiff class in the Illinois action was so inadequate as to violate the rules of natural justice.
The defendants appealed.
The Court of Appeal dismissed the appeal, holding that before enforcing a foreign class action judgment against Ontario residents, the court must ensure the foreign court had a proper basis for jurisdiction and that the interests of Ontario residents were adequately protected.
The Court found no basis to interfere with the motion judge's finding that the notice given to the non-resident class members was inadequate, and therefore the Ontario courts should not recognize and enforce the Illinois judgment against the plaintiff and the non-attorning Canadian class members.
