The appellants appealed a Divisional Court order that set aside the conditional certification of their proposed class action against Canada regarding the placement of Aboriginal children in non-Aboriginal foster care.
The Court of Appeal upheld the Divisional Court's finding that the case management judge erred by conditionally certifying the action when the statement of claim did not disclose a viable cause of action.
The Court also agreed that the certification motion should be heard by a different judge to avoid the original judge sitting in review of his own decision.
However, the Court allowed the appeal regarding costs, quashing the Divisional Court's costs award because it failed to consider the public interest and novel legal issues raised by the case.