Dismissal Of A Certification Application On The Merits Prevents Certification For Settlement

When a proposed class action is settled before certification, the parties often apply to certify the action for the purpose of settlement. This lets the settlement bind the entire class (save those who opt out), which is often desirable for defendants (because the class members cannot later pursue individual claims). While actions certified for the purpose of settlement must still meet the certification criteria of class actions legislation, certification for the purpose of settlement is rarely refused.

But it was refused in Leonard v. The Manufacturers Life Insurance Company, 2019 BCSC 598. The court held that it could not certify an action for the purpose of settlement—even though all parties wanted that result—because the court had previously dismissed a certification application on the merits (in 2016 BCSC 534).