P.E. Veel

Two proposed class actions were brought against consumer loan companies for allegedly engaging in unlawful business practices that misled consumers into signing loan agreements in breach of consumer protection legislation.

The plaintiffs sought interim motions for temporary stays of hundreds of related proceedings (primarily in Small Claims Court) pending final disposition of the class actions.

At a case conference, the court determined the sequencing of motions and set a litigation timetable.

The court ordered that the interim stay motions be heard before certification, finding that fairness and efficiency dictated this sequencing to prevent the defendants' enforcement actions from effectively mooting the class proceedings.

Following a successful application declaring a municipal fund to be a purpose trust and finding the respondent municipality in breach of its obligations as trustee, the applicant sought costs on a full indemnity basis.

The court found that the applicant championed the cause of other ratepayers and that the litigation arose partly due to uncertainty surrounding the agreement.

The court awarded the applicant full indemnity costs of $89,319.11, ordering the respondent to pay $53,319.11 on a partial indemnity scale, with the balance of $36,000 to be recovered from the trust fund.