In Maginnis v. FCA Canada
Inc. the
Ontario Divisional Court upheld the dismissal of the
plaintiffs' certification motion against an automobile
manufacturer and other defendants in a proposed class action
relating to an automotive emission defeat device.
Apart from reaffirming that plaintiffs must provide evidence,
and not just allegations of compensable loss to succeed at
certification, the Divisional Court's decision in this appeal
has some direct implications for manufacturers across industries.
Specifically, it:
- Underscores how a robust recall program may assist to reduce or
eliminate compensable harm to consumers that could otherwise
support certification; and
- Reinforces that compensable harm is a "fundamental
prerequisite" for class certification in Ontario. A
plaintiff's failure to file evidence of compensable harm can
therefore be fatal to a certification motion.
