Saskatchewan Court Of Appeal Rejects Ragoonanan Principle

In a recent decision with potentially far-reaching consequences – Red Seal – the Saskatchewan ​Court of Appeal has rejected the so-called "Ragoonanan" principle applicable to class actions. The Ragoonanan principle, which derives from an Ontario case of the same name, requires that for each defendant named in a putative class action, there must be at least one representative plaintiff with a cause of action against it.

Decision

The decision in Red Seal was released alongside two other judgments in the same putative class action: Alves and Roussy. The action involved allegations that the defendant tour companies sold the plaintiffs vacation packages in Cuba, with knowledge that the Cuban resorts could not supply basic water amenities. The defendants were alleged to be liable for failing to take reasonable care in the selection of the Cuban resorts, and selling the tour packages without disclosing the water problems.