Court File and Parties
COURT FILE NO.: CV-20-00084590-00CP DATE: 20211130
ONTARIO SUPERIOR COURT OF JUSTICE
BETWEEN:
SHERINE RAGHAVAN, BEVERLEY BOYLE, AMINA BOUMEZBEUR, DANIELLE WOSU and LEONARD WOSU Plaintiffs
- and -
ONTARIO STARS CORPORATION o/a ONTARIO SAFETY STANDARDS, SAFETY STANDARDS GROUP INC. o/a CANADIAN SAFETY STANDARDS, 10392197 CANADA CORP. o/a ONTARIO GREEN SAVINGS, ONTARIO GREEN SAVINGS CORPORATION, SAEED TORBATI, VIVA FINANCIAL CORPORATION, CROWN CREST CAPITAL CORP., CROWN CREST CAPITAL MANAGEMENT CORP., and CROWN CREST HOLDING CORP., CROWN CREST FINANCIAL CORP., CROWN CREST BILLING CORP., CROWN CREST FUNDING CORP., CANADIAN HOME IMPROVEMENT CREDIT CORPORATION, 2035881 ONTARIO INC., RELIANCE COMFORT LIMITED PARTNERSHIP, and ENBRIDGE GAS INC. (FORMERLY ENBRIDGE GAS DISTRIBUTION INC.) Defendants
Scott McAnsh for the Plaintiff
Proceeding under the Class Proceedings Act, 1992
HEARD: November 29, 2021
REASONS FOR DECISION
PERELL, J.
[1] The Plaintiffs Sherine Raghavan, Beverley Boyle, Amina Boumezbeur, Danielle Wosu and Leonard Wosu bring a motion pursuant to s. 29 of the Class Proceedings Act, 1992[^1] for leave to discontinue their proposed class action effective 60 days from the date of the Order. The Plaintiffs also seek leave to proceed with two individual actions and they seek ancillary relief.
[2] The Plaintiffs commenced this proposed class action by Notice of Action on September 30, 2020. A Statement of Claim was issued on October 29, 2020, and the Statement of Claim was amended by Order of Master Fortier on April 30, 2021.
[3] The Plaintiffs sue Ontario Stars Corporation o/a Ontario Safety Standards, Safety Standards Group Inc. o/a Canadian Safety Standards, 10392197 Canada Corp. o/a Ontario Green Savings, Ontario Green Savings Corporation, Saeed Torbati, VIVA Financial Corporation, Crown Crest Capital Corp., Crown Crest Capital Management Corp., Crown Crest Holding Corp., Crown Crest Financial Corp., Crown Crest Billing Corp., Crown Crest Funding Corp., Canadian Home Improvement Credit Corporation, 2035881 Ontario Inc., Reliance Comfort Limited Partnership, and Enbridge Gas Inc. (formerly Enbridge Gas Distribution Inc.).
[4] The Defendants are sued for alleged violations of the Consumer Protection Act, 2002.[^2]
[5] The Plaintiffs’ proposed Class Counsel accepted the retainer to proceed with this proposed class action contingent upon the Plaintiffs obtaining litigation support.
[6] The Plaintiffs applied for funding, but they were unable to secure the funding. As a result, the Plaintiffs seek leave to discontinue the proposed class action and for leave to commence two individual actions.
[7] The Plaintiffs’ action was brought in good faith, but it is not viable to proceed as a class action where the Plaintiffs would represent a host of class members with claims against the Defendants.
[8] The key factor in determining whether leave should be granted to discontinue a proposed class action is whether the putative Class Members, who may have been relying on the possibility of a class action, are prejudiced by its discontinuance.
[9] In the immediate case, the discontinuance of this proposed class action would not prejudice the putative class members because: (a) at present there are two similar proposed consumer protection class actions to which the putative Class Members may already be putative class members; namely, Blackford-Hall v. Simply Group[^3] and Bonnick v. Crown Crest Capital Management Corp.;[^4] and (b) there has been no announcement of the Plaintiffs’ proposed class action and thus no reliance on it as a vehicle for access to justice, which the putative class members may pursue by individual actions, if so advised.
[10] At the moment, putative class members are protected from the running of the limitation period because of s. 28 of the Class Proceedings Act, 1992.
[11] In the above circumstances, I grant the Plaintiffs leave to discontinue their proposed class action. It is not necessary to provide notice of this discontinuance.
[12] The Plaintiffs Beverley Boyle, Danielle Wosu, Leonard Wosu, and Sherine Raghavan wish to continue to prosecute their actions on an individual basis. They seek an order pursuant to s. 7 (2) of the Class Proceedings Act, 1992 “to continue as one or more proceedings between different parties.”
[13] Strictly speaking, the Plaintiffs do not come within s. 7 of the Act, which addresses the circumstance where a proposed class action is not certified. I am, however, empowered to grant the relief the Plaintiffs request pursuant to s. 12 of the Class Proceedings Act, which states:
Court may determine conduct of proceeding
- The court, on its own initiative or on the motion of a party or class member, may make any order it considers appropriate respecting the conduct of a proceeding under this Act to ensure its fair and expeditious determination and, for the purpose, may impose such terms on the parties as it considers appropriate.
[14] I, therefore, grant leave to Sherine Raghavan, Danielle Wosu, and Leonard Wosu to continue their action (the “Raghavan Action”) against Safety Standards Group Inc. o/a Canadian Safety Standards, Crown Crest Capital Corp., and Crown Crest Capital Management Corp.
[15] I, therefore, grant leave to Beverley Boyle to continue her action (the “Boyle Action”) against Ontario Stars Corporation o/a Ontario Safety Standards, Safety Standards Group Inc. o/a Canadian Safety Standards, Ontario Green Savings Corporation, Canadian Home Improvement Credit Corporation, VIVA Financial Corporation, 2035881 Ontario Inc., and Reliance Comfort Limited Partnership.
[16] The Boyle Action shall be severed from the Raghavan Action.
[17] The Raghavan Action and the Boyle Action do not advance claims against the following Defendants: 10392197 Canada Corp. o/a Ontario Green Savings; Saeed Torbati; Crown Crest Holding Corp.; Crown Crest Financial Corp.; Crown Crest Billing Corp.; Crown Crest Funding Corp.; and Enbridge Gas Inc. (formerly Enbridge Gas Distribution Inc.).
[18] The ancillary relief set out in the notice of motion is granted.
[19] Order accordingly.
Perell, J.
Released: November 30, 2021
COURT FILE NO.: CV-20-00084590-00CP DATE: 20211130
ONTARIO SUPERIOR COURT OF JUSTICE
BETWEEN:
SHERINE RAGHAVAN, BEVERLEY BOYLE, AMINA BOUMEZBEUR, DANIELLE WOSU and LEONARD WOSU Plaintiffs
- and -
ONTARIO STARS CORPORATION o/a ONTARIO SAFETY STANDARDS, SAFETY STANDARDS GROUP INC. o/a CANADIAN SAFETY STANDARDS, 10392197 CANADA CORP. o/a ONTARIO GREEN SAVINGS, ONTARIO GREEN SAVINGS CORPORATION, SAEED TORBATI, VIVA FINANCIAL CORPORATION, CROWN CREST CAPITAL CORP., CROWN CREST CAPITAL MANAGEMENT CORP., CROWN CREST HOLDING CORP., CROWN CREST FINANCIAL CORP., CROWN CREST BILLING CORP., CROWN CREST FUNDING CORP., CANADIAN HOME IMPROVEMENT CREDIT CORPORATION, 2035881 ONTARIO INC., RELIANCE COMFORT LIMITED PARTNERSHIP, and ENBRIDGE GAS INC. (FORMERLY ENBRIDGE GAS DISTRIBUTION INC.) Defendants
REASONS FOR DECISION
PERELL J.
Released: November 30, 2021
[^1]: S.O. 1992, c. 6. [^2]: S.O. 2002, c. 30, Sched. A. [^3]: Court File No.: CV-21-00664652-00CP. [^4]: Court File No.: CV-21-00665193-00CP.