Costs In (Ontario) Class Actions: When You Start A Fire, You May Get Burned

In a recent decision from the Ontario Superior Court, Justice Perell awarded significant costs to defendants who were successful on summary judgment motions pre-certification, affirming that defendants are entitled to access to justice in having meritless claims dismissed.

The representative plaintiffs, David Hughes and 631992 Ontario Inc., brought a proposed class proceeding against the LCBO, The Beer Store, Labatt, Molson, and Sleeman seeking $2 billion in damages arising from an alleged decades-long criminal and civil conspiracy designed to increase the price of beer in Ontario.  The defendants brought summary judgment motions and the plaintiff brought a cross partial summary judgment motion.  The defendants were successful and four out of five defendants sought their partial indemnity costs, the remaining defendant, Sleeman, having settled its costs with the plaintiff.