Recalls Can Be Preferable To Class Action Proceedings

In Coles v. FCA Canada Inc., 2022 ONSC 5575, the Court recently denied certification of a proposed product liability class action on the basis that the defendant's established recall program was preferable to a class action. Coles joins a growing list of Ontario cases where courts have denied certification of product liability class actions where defendants establish recall programs that mitigate or eliminate the danger that is the basis of the proposed class action before the certification motion.

Background

Coles concerned a proposed class action brought against car manufacturer Chrysler Canada Inc., now FCA Canada Inc., for allegedly negligently installing airbags in its vehicles that contained the risk of exploding when deployed in a motor vehicle collision. Coles was one of six national class actions commenced against 12 groups of car manufacturers and the designer and manufacturer of the airbags, Takata Corporation and TK Holdings (collectively Takata).