Tamryn Lara Jacobson

The plaintiffs brought a class action against mutual fund managers for allowing certain investors to engage in frequent short-term trading (market timing/time zone arbitrage), which allegedly diluted the returns of long-term unitholders.

The court found that the defendants owed a duty of care to the funds and breached the standard of care by failing to prevent, and actively facilitating, frequent short-term trading contrary to their prospectuses.

However, the court dismissed the claim for breach of fiduciary duty, finding no bad faith or dishonesty.

The matter was directed to proceed to a damages trial.

The court issued a file direction/order in a long-standing class action concerning alleged market timing by mutual funds.

The order set a peremptory trial date for January 10, 2022, for a maximum 40-day trial, conditional on the parties approving a detailed Trial Agenda by September 30, 2021.

The judge emphasized the need for the action to be genuinely ready for trial and for the Trial Agenda to be strictly adhered to, subject to judicial leave for variations.

The Plaintiffs in a class action sought leave to examine second corporate representatives for AIC Limited and CI Mutual Funds Inc., and to examine non-party witnesses, pursuant to Rules 31.03 and 31.10 of the Rules of Civil Procedure.

The court dismissed the motions, finding that the Plaintiffs had not demonstrated that satisfactory answers could not be obtained from the initial representatives or that it would be unfair to proceed to trial without further examinations.

The court emphasized that Ontario's discovery rules generally envision a single examination per party, with the representative obliged to inform themselves and provide information based on knowledge, information, and belief, including through undertakings.

The applicants, a group of real estate development companies, sought an Initial Order under the CCAA and the continuation of their NOI proceedings under the CCAA.

Concurrently, the foreign representative of the parent company sought recognition of Israeli insolvency proceedings as a foreign main proceeding under Part IV of the CCAA.

The court approved a Co-operation Protocol between the foreign representative and the proposed Monitor, recognized the Israeli proceeding as a foreign main proceeding, and granted the Initial Order.

The court also extended the stay of proceedings to related limited partnerships and approved various administrative and interim financing charges.

In the CCAA proceedings of U.S. Steel Canada Inc., its parent company, United States Steel Corporation, sought approval of several proofs of claim totaling over $2 billion.

Various stakeholders objected, arguing that the intercompany loans should be re-characterized as 'equity claims' under the CCAA and that the security granted for certain advances was void as a fraudulent preference or unenforceable for lack of consideration.

The court rejected the objections, finding that the parent company had a reasonable expectation of repayment when the advances were made, and that the security was validly granted for fresh consideration and did not constitute a fraudulent preference.

The claims were confirmed as debt claims.

In this certified class proceeding arising from alleged failures by mutual fund managers to prevent market timing, the plaintiffs moved to compel broader documentary production and to settle the discovery plan.

The court held that the requested comprehensive trading data and additional OSC production were directed to damages quantification, not to the certified common issues limited to duty and breach in negligence and fiduciary duty.

The court rejected the plaintiffs' reliance on an economics expert to establish legal relevance, holding that relevance to the common issues was a matter of domestic law for the court.

The motion was dismissed in full, and the court indicated that any remaining discovery plan details could be finalized at a case conference.