Court File and Parties
ONTARIO
SUPERIOR COURT OF JUSTICE
BETWEEN:
DANIELE RAPONI
Plaintiff
- and -
OLYMPIA TRUST COMPANY
Defendant
Counsel:
Garth Myers, Paul Bates, and David Milosevic for the Plaintiff
Proceeding under the Class Proceedings Act, 1992
HEARD: In writing
REASONS FOR DECISION
PERELL, J.
1This is a proposed class action under the Class Proceedings Act, 1992.1
2The Plaintiff, Daniele Raponi brings a motion for an Order: (a) discontinuing the action against Olympia Trust Company without prejudice and without costs; and (b) not requiring notice of the discontinuance to be published.
3Ms. Raponi commenced this action on July 7, 2020. The subject of the action is a syndicated mortgage loan investment advanced to Mady-Collier Centre Ltd. and Fortress Collier Centre Ltd.
4Subsequently Ms. Raponi commenced another action, an “Omnibus Action” against Olympia Trust on behalf of investors in syndicated mortgage loans for 54 projects, including the syndicated mortgage loan investment advanced to Mady-Collier Centre Ltd. and Fortress Collier Centre Ltd. The allegations advance in the immediate action are advanced in the Omnibus Action.
5The Omnibus Action is scheduled for a certification motion hearing in late May 2022.
6Section 29 of the Class Proceedings Act, 1992 requires court approval for the discontinuance, abandonment, dismissal or settlement of a class action. Section 29 states:
Discontinuance, abandonment and settlement
- (1) A proceeding commenced under this Act and a proceeding certified as a class proceeding under this Act may be discontinued or abandoned only with the approval of the court, on such terms as the court considers appropriate.
Settlement without court approval not binding
(2) A settlement of a class proceeding is not binding unless approved by the court.
Effect of settlement
(3) A settlement of a class proceeding that is approved by the court binds all class members.
Notice: dismissal, discontinuance, abandonment or settlement
(4) In dismissing a proceeding for delay or in approving a discontinuance, abandonment or settlement, the court shall consider whether notice should be given under section 19 and whether any notice should include,
(a) an account of the conduct of the proceeding;
(b) a statement of the result of the proceeding; and
(c) a description of any plan for distributing settlement funds.
7A 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.2
8The immediate action is redundant and ought to and should be discontinued without costs and without requiring notice to the putative class members. They will not be prejudiced by the discontinuance of the immediate action because their interests are protected by the Omnibus Action.
9The motion is granted. I have signed the Order.
Perell, J.
Released: October 14, 2021
COURT FILE NO.: CV-20-00643584-00CP
DATE: 20211014
ONTARIO
SUPERIOR COURT OF JUSTICE
BETWEEN:
DANIELE RAPONI
Plaintiff
- and -
OLYMPIA TRUST COMPANY
Defendant
REASONS FOR DECISION
PERELL J.
Released: October 14, 2021
Footnotes
- S.O. 1992
- Logan v. Canada (Minister of Health), [2003] O.J. No. 418 (S.C.J.), aff’d (2004), 2004 CanLII 184 (ON CA), 71 O.R. (3d) 451 (C.A.).