Following the Court of Appeal’s reversal of a certification order in a proposed class action alleging misclassification of supervisors and unpaid overtime under the Canada Labour Code, the motion judge was directed to fix the defendant’s costs of the certification motion.
The defendant sought over $1 million in partial indemnity costs, arguing that it had achieved complete success and that the litigation involved substantial complexity and financial exposure.
The representative plaintiff and the Law Foundation argued that costs should be nominal or substantially reduced because the proceeding raised novel legal issues and public interest considerations under s. 31 of the Class Proceedings Act, 1992.
Applying issue estoppel arising from the Court of Appeal’s reasons and considering the purposes of class action costs, the court fixed costs at $475,000 all inclusive.