Court File and Parties

COURT FILE NO.: CV-16-543764-00CP DATE: 20210312 ONTARIO SUPERIOR COURT OF JUSTICE

BETWEEN:

GARY COLES Plaintiff

• and - TAKATA CORPORATION, TK HOLDINGS INC. and FCA CANADA INC., f/k/a CHRYSLER CANADA INC. Defendants

Counsel: Sabrina Lombardi for the Plaintiff

Heard: In writing

PERELL, J.

Reasons for Decision

[1] This is an unopposed motion for an Order: (a) dismissing these proceedings as against Takata Corporation; and (b) TK Holdings Inc. with prejudice and amending the title of proceedings accordingly without costs.

[2] On March 14, 2018, Justice Hainey issued an order pursuant to the Companies' Creditors Arrangement Act (“CCAA”), R.S.C. 1985, c. C-36, recognizing and giving full force and effect in all provinces and territories of Canada to the Order of the United States Bankruptcy Court for the District of Delaware dated February 21, 2018 confirming the Fifth Amended Joint Chapter 11 Plan of Reorganization of TK Holdings Inc. and its Affiliated Debtors (the "Chapter 11 Plan").

[3] The Chapter 11 Plan became effective on April 10, 2018.

[4] On May 17, 2018, Justice Hainey issued an order (the "Japanese Sale Approval Recognition Order") pursuant to the CCAA recognizing and giving full force and effect in all provinces and territories of Canada to the sale approval issued by the 20th Department of the Civil Division of the Tokyo District Court on February 26, 2018.

[5] On May 23, 2018, the civil rehabilitation plan of Takata Corporation (the "Japanese Plan") was approved by a large majority of creditors (93% by number and 96% by amount) and confirmed by the Japanese Court. The confirmation order became valid and binding on June 15, 2018.

[6] Under the Chapter 11 Plan, all claimants are "permanently enjoined" from "commencing, conducting, or continuing in any manner, directly or indirectly, any suit, action, or other proceeding of any kind (including any proceeding in a judicial, arbitral, administrative, or other forum) against or affecting, directly or indirectly, a Debtor [which includes TK Holdings Inc.]...."

[7] Takata Corporation was a "Released Party" under the Chapter 11 Plan and "deemed conclusively, absolutely, unconditionally, irrevocably and forever released and discharged, to the maximum extent permitted by law..."

[8] In the Chapter 11 Confirmation Recognition Order, Justice Hainey ordered that "the compromises, arrangements, releases, discharges and injunctions contained and referenced in, and the sale and transfer of the Purchased Assets to the Plan Sponsor in accordance with the terms described and set forth in, the Confirmation Order and the Chapter 11 Plan are hereby sanctioned, approved, recognized and given full force and effect in all provinces and territories of Canada in accordance with and subject to the terms of the Confirmation Order and the Chapter 11 Plan."

[9] Given the releases in the Chapter 11 Plan and the Japanese Plan, the plaintiff has determined not to continue to proceed with this litigation as against TK Holdings Inc. and Takata Corporation.

[10] The litigation will continue as against the Subject Vehicles manufacturer, namely FCA Canada Inc. f/k/a Chrysler Canada Inc. only.

[11] Similar dismissals in other Takata Airbag litigation against other vehicle manufacturers, were issued on April 8, 2019.

[12] Takata Corporation, TK Holdings Inc., and FCA Canada Inc. take no position on this motion respecting the dismissal.

[13] In the above circumstances, pursuant to sections 12 and 28 of the Class Proceedings Act, 1992, S.O. 1992, I grant the motion.

Perell, J.

Released: March 12, 2021