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ARTICLE · 09 MARCH 2004

So You Thought You Had a "Global" Settlement in that Class Action?

McMillan LLP
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The recent decision of the Ontario Superior Court in <I>Currie v. McDonald’s Restaurants, </I>[2004] O.J. No. 83 paves the way for U.S. class action settlements to bind a Canadian class, provided the Canadian class receives adequate notice. It is a cautionary tale, however, for U.S. defence counsel who attempt a "global" settlement for their clients.

CanadaInternational Law
Scott Maidment
Scott Maidment
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The recent decision of the Ontario Superior Court in Currie v. McDonald’s Restaurants, [2004] O.J. No. 83 paves the way for U.S. class action settlements to bind a Canadian class, provided the Canadian class receives adequate notice. It is a cautionary tale, however, for U.S. defence counsel who attempt a "global" settlement for their clients.

Currie

is believed to be the first Canadian decision to apply the recent ruling of the Supreme Court of Canada in Beals v. Saldanha [2003] S.C.J. No. 77 in a class action context. Beals, released in December of 2003, established that Canadian courts should enforce a U.S. Court decision where the U.S. court has a "real and substantial connection" with either the subject matter of the suit or the defendant. The ruling in Currie suggests Beals can be used to bind a Canadian class in a U.S. settlement, but to do so effectively you have to be careful of Canadian principles of "natural justice".

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