Supreme Court Of Canada To Rule On "Preferable Procedure" Inquiry In Class Actions

The Supreme Court of Canada (SCC) recently granted leave to appeal the Ontario Court of Appeal's decision in AIC Limited et al. v. Dennis Fischer et al.

The Fisher decisionconsiders the important question of whether a successful OSC proceeding, resulting in the payment of $205 million in compensation to affected investor mutual funds, prohibits individual investors from suing for damages in civil courts.

The Ontario Court of Appeal recently held that a class proceeding is the preferable procedure to the OSC enforcement proceedings because it can provide relief to individual investors. This, however, paves the way for parallel proceedings on the same set of facts. The "preferable procedure" inquiry is often a main fight on certification motions. The SCC will provide much-needed clarity on this analysis.