Court File and Parties
COURT FILE NO.: CV-17-586082-00CP DATE: 2020/02/19 ONTARIO SUPERIOR COURT OF JUSTICE
BETWEEN:
JOSEPH S. MANCINELLI, CARMEN PRINCIPATO, DOUGLAS SERROUL, LUIGI CARROZZI, MANUEL BASTOS, and JACK OLIVEIRA in their capacity as THE TRUSTEES OF THE LABOURERS' PENSION FUND OF CENTRAL AND EASTERN CANADA Plaintiffs
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BANK OF AMERICA CORPORATION, BANK OF AMERICA, N.A., BANK OF AMERICA CANADA, BANK OF AMERICA, NATIONAL ASSOCIATION, BANK OF AMERICA MERRILL LYNCH INTERNATIONAL LIMITED, MERRILL LYNCH INTERNATIONAL, MERRILL LYNCH, PIERCE, FENNER & SMITH INC., MERRILL LYNCH CANADA INC., MERRILL LYNCH INTERNATIONAL SERVICES LIMITED, MERRILL LYNCH FINANCIAL ASSETS INC., MERRILL LYNCH BENEFITS LTD., BNP PARIBAS S.A., BNP PARIBAS GROUP, BNP PARIBAS (CANADA), BNP PARIBAS NORTH AMERICA INC., BNP PARIBAS, CITIGROUP INC., CITIBANK N.A., CITIGROUP GLOBAL MARKETS INC., CITIGROUP GLOBAL MARKETS LIMITED, CITIBANK CANADA, CITIGROUP GLOBAL MARKETS CANADA INC., CRÉDIT AGRICOLE S.A., CRÉDIT AGRICOLE CORPORATE AND INVESTMENT BANK, CRÉDIT AGRICOLE CORPORATE AND INVESTMENT BANK (CANADA BRANCH), CREDIT SUISSE GROUP AG, CREDIT SUISSE AG, CREDIT SUISSE SECURITIES (EUROPE) LTD., CREDIT SUISSE INTERNATIONAL, CREDIT SUISSE SECURITIES (CANADA), INC., CREDIT SUISSE AG, CREDIT SUISSE SECURITIES (USA) LLC, DEUTSCHE BANK AG, DEUTSCHE BANK SECURITIES INC., DEUTSCHE BANK SECURITIES LIMITED, HSBC HOLDINGS PLC, HSBC BANK USA, N.A., HSBC SECURITIES (USA) INC., HSBC BANK PLC, HSBC NORTH AMERICA HOLDINGS INC., HSBC BANK CANADA, HSBC USA, INC., NOMURA HOLDINGS, INC., NOMURA SECURITIES INTERNATIONAL, INC., NOMURA INTERNATIONAL PLC, ROYAL BANK OF CANADA, RBC EUROPE LIMITED, RBC CAPITAL MARKETS LLC, TORONTO-DOMINION BANK GROUP, TD BANK, N.A., TD SECURITIES LIMITED, TD GROUP HOLDINGS, LLC, and TD BANK USA, N.A Defendants
Counsel: Kirk Baert and Garth Myers for the Plaintiffs Andrea Laing and Robert Kwinter for the Defendants Bank of America Corporation, Bank of America, N.A., Bank of America Canada, Bank of America, National Association, Bank of America Merrill Lynch International Limited, Merrill Lynch International, Merrill Lynch, Pierce, Fenner & Smith Inc., Merrill Lynch Canada Inc., Merrill Lynch International Services Limited, Merrill Lynch Financial Assets Inc., and Merrill Lynch Benefits Ltd. Mark Evans, Robb C. Heintzman, and Adam Goodman for the Defendants HSBC Holdings plc, HSBC Bank USA, N.A., HSBC Securities (USA) Inc., HSBC Bank plc, HSBC North America Holdings Inc., HSBC Bank Canada, and HSBC USA, Inc. Laura F. Cooper and Zohaib Maladwala for the Defendants BNP Paribas S.A., BNP Paribas Group, BNP Paribas (Canada), BNP Paribas North America Inc., and BNP Paribas David Kent, Brett Harrison, and Neil Campbell for the Defendants Citigroup Inc., Citibank N.A., Citigroup Global Markets Inc., Citigroup Global Markets Limited, Citibank Canada, and Citigroup Global Markets Canada Inc. Katherine Kay for the Defendants Credit Agricole S.A., Credit Agricole Corporate and Investment Bank, and Credit Agricole Corporate and Investment Bank (Canada Branch) John Fabello and Jon Silver for the Defendants Credit Suisse Group AG, Credit Suisse AG, Credit Suisse Securities (Europe) Ltd., Credit Suisse International, Credit Suisse Securities (Canada), Inc., and Credit Suisse Securities (USA) LLC Subrata Bhattacharjee, Caitlin Sainsbury, and Pierre Gemson for the Defendants Deutsche Bank AG, Deutsche Bank Securities Inc., and Deutsche Bank Securities Limited Nikiforos Iatrou, Donald B. Houston, and Caroline H. Humphrey for the Defendants Nomura Securities International, Inc. Adam Fanaki, Chantelle Cseh, and Derek Ricci for the Defendant Nomura International plc Lara Jackson and Wendy Berman for the Defendants Royal Bank of Canada, RBC Europe Limited, and RBC Capital Markets LLC Paul Le Vay, Brendan van Niejenhuis and Ben Kates for the Defendants Toronto-Dominion Bank Group, TD Bank, N.A., TD Securities Limited, TD Group (US) Holdings, LLC, and TD Bank USA, N.A.
Proceedings under the Class Proceedings Act, 1992
HEARD: February 14, 2020
PERELL, J.
Reasons for Decision
[1] On December 1, 2017, pursuant to the Class Proceedings Act, 1992 [1], Joseph S. Mancinelli, Carmen Principato, Douglas Serroul, Luigi Carrozzi, Manuel Bastos and Jack Oliveira in their capacity as the Trustees of the Labourers’ Pension Fund of Central and Eastern Canada commenced an action against: Bank of America Corporation, Bank of America, N.A., Bank of America Canada, Bank of America, National Association, Bank of America Merrill Lynch International Limited, Merrill Lynch International, Merrill Lynch, Pierce, Fenner & Smith Inc., Merrill Lynch Canada Inc., Merrill Lynch International Services Limited, Merrill Lynch Financial Assets Inc., Merrill Lynch Benefits Ltd., HSBC Holdings plc, HSBC Bank USA, N.A., HSBC Securities (USA) Inc., HSBC Bank plc, HSBC North America Holdings Inc., HSBC Bank Canada, HSBC USA, Inc., BNP Paribas S.A., BNP Paribas Group, BNP Paribas (Canada), BNP Paribas North America Inc., BNP Paribas, Citigroup Inc., Citibank N.A., Citigroup Global Markets Inc., Citigroup Global Markets Limited, Citibank Canada, Citigroup Global Markets Canada Inc., Credit Agricole S.A., Credit Agricole Corporate, Investment Bank, and Credit Agricole Corporate, Investment Bank (Canada Branch), Credit Suisse Group AG, Credit Suisse AG, Credit Suisse Securities (Europe) Ltd., Credit Suisse International, Credit Suisse Securities (Canada), Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank AG, Deutsche Bank Securities Inc., Deutsche Bank Securities Limited, Nomura Securities International, Inc., Nomura International plc, Royal Bank of Canada, RBC Europe Limited, RBC Capital Markets LLC, Toronto-Dominion Bank Group, TD Bank, N.A., TD Securities Limited, TD Group (US) Holdings, LLC, and TD Bank USA, N.A.
[2] On December 5, 2017, the Plaintiffs issued a similar claim in the Federal Court. All of the Defendants in the Ontario Action were included in the Federal Court Action, and the Federal Court Action makes all of the allegations asserted in the Ontario Action.
[3] The Plaintiffs now are in the process of preparing their motion record for certification in the Federal Court action.
[4] In the Federal Court, settlements have been reached with two groups of defendants: namely: (1) Bank of America Corporation, Bank of America, N.A., Bank of America Canada, Bank of America, National Association, Bank of America Merrill Lynch International Limited, Merrill Lynch International, Merrill Lynch, Pierce, Fenner & Smith Inc., Merrill Lynch Canada Inc., Merrill Lynch International Services Limited, Merrill Lynch Financial Assets Inc., and Merrill Lynch Benefits Ltd. ("Bank of America"); and (2) HSBC Holdings PLC, HSBC Bank USA, N.A., HSBC Securities (USA) Inc., HSBC Bank PLC, HSBC North America Holdings Inc., HSBC Bank Canada, and HSBC USA, Inc. ("HSBC").
[5] The Bank of America settlement provides for cooperation and payment of $750,000. The HSBC settlement provides for cooperation and payment of $1,323,529.41. The terms of the Settlement Agreements provide that the Plaintiffs will seek leave to abandon the Ontario Action in favour of the Federal Court Action.
[6] The Federal Court approved these settlements on February 5, 2020. No class members objected to the settlements.
[7] The parties in the Ontario action have agreed to the form and content of an order dismissing this action, with prejudice and without costs.
[8] Section 29 of the Class Proceedings Act, 1992 states a class proceeding may only be discontinued with approval of the court, on such terms as the court considers appropriate.
[9] Before giving approval of discontinuance or an abandonment, the court must be satisfied that the interests of the putative class members will not be prejudiced. [2]
[10] A motion for discontinuance or abandonment should be carefully scrutinized, and the court should consider, among other things: whether the proceeding was commenced for an improper purpose, whether, if necessary there is a viable replacement party so that putative class members are not prejudiced, or whether the defendant will be prejudiced. [3]
[11] In the immediate case, there is no prejudice to the class members and their claims against the Defendants will continue in the Federal Court proceedings. In the immediate case, granting the order will avoid a multiplicity of proceedings without prejudice to the claims of the putative Class Members.
[12] For these reasons, I grant the motion to dismiss.
Perell, J.
Released: February 19, 2020
Footnotes
[1] S.O. 1990, c. 6.
[2] Cappelli v. Nobilis Health Corp., 2019 ONSC 4521; Castrillo v. Workplace Safety and Insurance Board, 2018 ONSC 4421; Web Objective, Inc. v. SociaLabra, Inc., 2018 ONSC 664; Frank v. Farlie, Turner & Co., LLC, 2011 ONSC 7137; Durling v. Sunrise Propane Energy Group Inc., [2009] O.J. No. 5969 at paras. 14-29 (S.C.J.); Sollen v. Pfizer, 2008 ONCA 803, 2008 O.J. No. 4787 (C.A.), aff’g , 2008 O.J. No. 866 (S.C.J.); Coleman v. Bayer Inc., [2004] O.J. No. 1974 at paras. 30-39 (S.C.J.) and 2004 O.J. No. 2775 (S.C.J.).