Ontario Court Finds Constructive Dismissal Not Suitable For Class Action Proceeding

In Kafka v. Allstate Insurance Company of Canada, the Ontario Superior Court found that a proposed class action by former employees of Allstate who alleged that they were constructively dismissed is not suitable for certification. The plaintiff, who resigned along with a large number of other employees following a policy change to the manner in which they were compensated, claimed that the unilateral change by Allstate to their compensation amounted to constructive dismissal on a class–wide scale. However, the court disagreed, and stated that the individual situation for each of the plaintiffs would have to be examined, and therefore this proceeding was no appropriate as a class action.