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ARTICLE · 12 NOVEMBER 2020

No Compensable Loss? No Class Action – Maginnis v FCA Canada

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In a recent decision that will be of critical importance to the class action defence bar, Justice Belobaba refused to certify a proposed automotive class action because the plaintiffs failed to ...

CanadaLitigation, Mediation & Arbitration
Lindsay Lorimer
Lindsay Lorimer
Calie Adamson
Calie Adamson
Ouvedi Rama Naiken
Ouvedi Rama Naiken
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In a recent decision that will be of critical importance to the class action defence bar, Justice Belobaba refused to certify a proposed automotive class action because the plaintiffs failed to demonstrate a compensable loss.

Factual Background

The proposed class action in Maginnis and Magnaye v FCA Canada et al1 involved certain Dodge Ram 1500 and Grand Jeep Cherokee vehicles manufactured by Fiat Chrysler Automobiles ("FCA"). In January 2017, American environmental agencies charged FCA with violations relating to the installation of a defeat device in certain diesel-engine vehicles. Not surprisingly, litigation in both Canada and the US followed shortly thereafter.

The plaintiffs in Maginnis sought certification of a class consisting of all owners and lessors of model year 2014-2016 Dodge Ram 1500 and Grand Jeep Cherokee diesel-engine vehicles (the "Subject Vehicles"). However, prior to the hearing of the certification motion in Maginnis, the US litigation

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The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.

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