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Bennett Jones Predicts Less Plaintiff Friendly Judicial Approach in 2013

December 17, 2012

(Toronto) In their yearly review and look ahead for Class Actions in Canada, the Bennett Jones Class Action Practice group sees a shift away from the plaintiff friendly approach to certain class actions issues that has been demonstrated in the past by Canadian courts. This guide offers analysis of trends and likely developments in class actions in 2013.

The decision in the case of Sharma v. Timminco promises a more defendant-friendly outcome for securities class actions in which the three-year limitation period would be strictly upheld. This view was upheld in Green v. CIBC. However, the somewhat conflicting decisions in IMAX and Celestica appear to provide plaintiffs with additional potential avenues for relief, thereby creating a need for appellate guidance in 2013.

In Gould v. Western Coal Corporation, Justice Strathy's comments provided guidance for future leave motions under the Securities Act, serving as a reminder to plaintiffs and defendants to closely consider both the quantity and the quality of the evidence submitted on such motions.

While the decision in Gould confirms the low threshold for plaintiffs in obtaining leave, Justice Strathy also clearly articulated that the leave test should be considered a meaningful hurdle for plaintiffs to surmount. Ultimately, the decision reinforces the need for counsel and parties alike to scrutinize the evidence they are putting before the court on leave motions.

"These decisions were significant and, in some cases, provide an indication of where the battle lines will be drawn in similar proceedings in 2013", says Eric Hoaken, Co-Head of Class Actions at Bennett Jones.

According to the analysis and predictions contained in the Bennett Jones guide, 2013 promises to be another year of significant activity and judicial developments relating to class actions.

The Complete Guide is located at:

http://www.bennettjones.com/Guides/Looking_Forward_Canadian_Class_Actions_in_2013/

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