Ontario Class Action Reforms Come Into Law

IADC, together with a number of other defense organizations, has been advocating for class action reform in Ontario Canada for some years, and most recently supported amendments to the Class Proceedings Act, 1992 (CPA) proclaimed into force effective October 1, 2020. 

The amendments were made as part of the Smarter and Stronger Justice Act, 2020, which received Royal Assent on July 8, 2020. The changes to the CPA are designed to help resolve cases faster so people receive meaningful access to justice sooner, and businesses experience fewer financial and reputational risks when defending class actions.

The amendments to the CPA will, subject to specified exceptions, only apply to class proceedings commenced on or after October 1, 2020.

The CPA, as amended, can be accessed at the following link: https://www.ontario.ca/laws/statute/92c06

Regulations and Regulatory Amendments

The following new regulations and regulatory amendments have been made to support the amendments to the CPA:

• A new General regulation under the CPA, which includes:
  • Details regarding the registration of proceedings commenced under the CPA; and
  • Technical rules related to the timing of the commencement of a proposed class proceeding that includes a claim under s. 138.3 of the Securities Act (Liability for secondary market disclosure);
• A new Subrogated Claims regulation under the CPA, containing details necessary to implement s. 27.3 of the CPA, as amended;
• Consequential amendments to O. Reg. 771/92 (Class Proceedings) under the Law Society Act; and
• Minor amendments to R.R.O. 1990, Reg. 194 (Rules of Civil Procedure) under the Courts of Justice Act.

We thank IADC members of the Canadian Class Action Reform Task Force who worked incredibly hard and contributed a great deal to this project.