hot topics in class actions defending class actions in ... · hot topics in class actions defending...
TRANSCRIPT
McCarthy Tétrault LLP / mccarthy.ca / February 9, 2012 / Doc ID #11150233
HOT TOPICS IN CLASS ACTIONS
Defending Class Actions in Canada,3rd Edition
February 9, 2012
McCarthy Tétrault Advance™Building Capabilities for Growth
McCarthy Tétrault LLP / mccarthy.ca / February 9, 2012 / Doc ID #11150233
2
SESSION 1
Class Actions –The Big Picture British Columbia In Flux
Andrew Wilkinson, Q.C.
McCarthy Tétrault LLP / mccarthy.ca / February 9, 2012 / Doc ID #11150233
315 Years of Class Actions in BC
¬ BC was early in Canada (1996)¬ Class Proceedings Act provides for rep plaintiff to
apply to “certify” entire class¬ Sometimes defendants like to be certified to
ensure capture of all claims¬ QC process (“authorization”) very different, with
no appeal for defendants
McCarthy Tétrault LLP / mccarthy.ca / February 9, 2012 / Doc ID #11150233
4Certification Criteria
¬ Cause of Action (including novel claims)¬ Identifiable class¬ Common issues¬ Preferable procedure¬ Rep plaintiff adequately represents class¬ Workable litigation plan
US criteria are more restrictive than Canadian
McCarthy Tétrault LLP / mccarthy.ca / February 9, 2012 / Doc ID #11150233
5Role of BC in Canadian Class Actions
¬ “National” classes still controversial in Canada ¬ BC was a local market until recently - “opt out”
made ON and QC more attractive to plaintiffs¬ BC now seen as more plaintiff friendly
¬ ? lower thresholds for certification¬ Organized plaintiff bar means co-ordinated
actions across Canada¬ US actions often lead by example
McCarthy Tétrault LLP / mccarthy.ca / February 9, 2012 / Doc ID #11150233
6Proposed Amendments to B.C. Class Proceedings Act¬ Only BC, NB and NF are “opt in”¬ SK and AB changed to “opt out”¬ CBA proposes that BC change to “opt out”¬ With no costs against plaintiffs, would make BC
attractive to national class plaintiffs
McCarthy Tétrault LLP / mccarthy.ca / February 9, 2012 / Doc ID #11150233
7
SESSION 2
Winning the war before it begins: Pre-certification strategies
Miranda Lam
McCarthy Tétrault LLP / mccarthy.ca / February 9, 2012 / Doc ID #11150233
8
McCarthy Tétrault LLP / mccarthy.ca / February 9, 2012 / Doc ID #11150233
9You’ve been sued … now what?
¬ Legal considerations:¬ Choice of defence counsel¬ Defeating the claim on a preliminary basis
¬ Jurisdiction¬ Other dispute resolution mechanisms¬ Nature of the claim¬ Opposing certification
¬ Defence on the merits¬ Settlement
McCarthy Tétrault LLP / mccarthy.ca / February 9, 2012 / Doc ID #11150233
10Preliminary Steps: Challenge Jurisdiction
¬ In British Columbia, only residents are automatically included in the class unless they opt out
¬ Issues:¬ Conflict of laws
¬ Court Jurisdiction and Transfer of Proceedings Act¬ “real and substantial connection” codified
¬ Constitutional: can provincial legislation have extra-provincial effect?
¬ Practical and strategic implications
McCarthy Tétrault LLP / mccarthy.ca / February 9, 2012 / Doc ID #11150233
11Preliminary Steps: Challenge the Dispute Resolution Mechanism¬ Mandatory Arbitration
Where the subject matter of the proposed class action is an agreement or relates to one, and the agreement contains an arbitration clause requiring that any disputes under it be resolved by arbitration, a defendant may be entitled to apply to have any court proceedings stayed.N.B. Breaches of consumer protection legislation are not subject to arbitration.
McCarthy Tétrault LLP / mccarthy.ca / February 9, 2012 / Doc ID #11150233
12Preliminary Steps: Challenge the Nature of the Claim¬ Cause of action¬ Motion for particulars¬ Security for costs¬ Summary judgment and summary trial
McCarthy Tétrault LLP / mccarthy.ca / February 9, 2012 / Doc ID #11150233
13Oppose Certification
¬ OPPOSE:¬ Failure to meet criteria¬ Incomplete pleadings¬ Substantive defence on
the merits¬ Strategic positioning
¬ CONSENT:¬ Strong case on the merits¬ Conditional consent as
precursor to settlement¬ Significant individual
claims that would be costly to defend separately
¬ Leverage¬ Appetite and resources to
litigate
McCarthy Tétrault LLP / mccarthy.ca / February 9, 2012 / Doc ID #11150233
14Avoiding Class Actions
¬ Robust Risk Management¬ Review processes and policies associated with
handling customer complaints and identification of issues
¬ Review internal policies to ensure currency and responsiveness (HR, safety, environmental, confidentiality)
¬ Consistent communication – internal and externally
¬ Agreements¬ Mandatory arbitration clauses?
McCarthy Tétrault LLP / mccarthy.ca / February 9, 2012 / Doc ID #11150233
15
SESSION 3
Trends in B.C. Class Actions:Our World Is Changing
Jill Yates
McCarthy Tétrault LLP / mccarthy.ca / February 9, 2012 / Doc ID #11150233
16Types of Claims are Changing
¬ BPCPA – BC’s consumer protection legislation¬ Various benefits for plaintiffs, including:
¬ aggressive remedies in some cases¬ insulation from arbitration in some cases
¬ Waiver of Tort¬ either cause of action or remedy¬ various benefits for plaintiffs
¬ Plaintiffs looking for opportunities to plead both of these
McCarthy Tétrault LLP / mccarthy.ca / February 9, 2012 / Doc ID #11150233
17Certification Standards are Changing
¬ Getting tougher to get certified in US¬ Easier to get certified in Ontario¬ Easier to get certified in B.C.
¬ Many courts are not strict about the requirements of the CPA
¬ e.g. Wakelam v. Johnson & Johnson et al.¬ e.g. Steele v. Toyota Canada Inc.
¬ Courts are taking a “certify now, worry later”approach
McCarthy Tétrault LLP / mccarthy.ca / February 9, 2012 / Doc ID #11150233
18Scope is Changing
¬ National/Cross-border classes are becoming more common, including in B.C.¬ The majority of our class actions are part of/
extensions of/ copies of claims in other jurisdictions
¬ It has been proposed that B.C.’s legislation be amended to allow for national classes
¬ Working toward a Judicial Cooperation Protocol in Canada
McCarthy Tétrault LLP / mccarthy.ca / February 9, 2012 / Doc ID #11150233
19How We Defend is Changing
¬ Courts have stated that it may often be appropriate for defendants to file a defence before certification – and some judges are requiring it
¬ Some courts are allowing pre-certification motions (e.g. pleadings, summary trials)
¬ Certification is no longer the end of the litigation process in a class action – cases are increasingly continuing beyond certification and some are going to trial
McCarthy Tétrault LLP / mccarthy.ca / February 9, 2012 / Doc ID #11150233
20
SESSION 4
Class Action Quirks:Limitations Periods in “Trust” Claims
Aggregate DamagesAND Contribution after Settlement
Warren Milman
McCarthy Tétrault LLP / mccarthy.ca / February 9, 2012 / Doc ID #11150233
21Limitation Periods
¬ Most Provinces: 2 years, subject to “discoverability”
¬ BC – Special case for claims seeking disgorgement of “trust funds” (e.g., waiver of tort)
¬ Law reform: relief is in sight?
McCarthy Tétrault LLP / mccarthy.ca / February 9, 2012 / Doc ID #11150233
22Aggregate Damages
¬ Traditional rule – can’t use CPA to create new substantive liability
¬ New rule: CPA allows class-wide damages to be aggregated so that class members need not show loss or injury
¬ Punishment vs. compensation ¬ Cy-prés awards
McCarthy Tétrault LLP / mccarthy.ca / February 9, 2012 / Doc ID #11150233
23Contribution- is settlement really the end?
¬ Rights of contribution for joint and several liability¬ Bar orders and covenants not to sue¬ Conspiracy claims?
VANCOUVERSuite 1300, 777 Dunsmuir StreetP.O. Box 10424, Pacific CentreVancouver BC V7Y 1K2Tel: 604-643-7100 Fax: 604-643-7900 Toll-Free: 1-877-244-7711
CALGARYSuite 3300, 421 7th Avenue SWCalgary AB T2P 4K9Tel: 403-260-3500 Fax: 403-260-3501 Toll-Free: 1-877-244-7711
TORONTOBox 48, Suite 5300Toronto Dominion Bank TowerToronto ON M5K 1E6Tel: 416-362-1812 Fax: 416-868-0673 Toll-Free: 1-877-244-7711
MONTRÉALSuite 25001000 De La Gauchetière Street WestMontréal QC H3B 0A2Tel: 514-397-4100 Fax: 514-875-6246 Toll-Free: 1-877-244-7711
QUÉBECLe Complexe St-Amable1150, rue de Claire-Fontaine, 7e étageQuébec QC G1R 5G4Tel: 418-521-3000 Fax: 418-521-3099 Toll-Free: 1-877-244-7711
UNITED KINGDOM & EUROPE125 Old Broad Street, 26th FloorLondon EC2N 1ARUNITED KINGDOMTel: +44 (0)20 7786 5700 Fax: +44 (0)20 7786 5702
McCarthy Tétrault LLP / mccarthy.ca / February 9, 2012 / Doc ID #11150233