What is a class action?

You have probably heard of class actions. This expression describes a legal procedure with a social objective.

A class action allows one person, called the representative, to take legal action on behalf of hundreds, even thousands, of people in a similar situation to their own. These people are called "class members". 

THE BEGINNING OF A CLASS ACTION

A class action begins with the filing of an application for authorization to institute a class action, also known as an "application for authorization".

A person wishing to start a class action and become the class members’ representative must hire lawyers to represent them before the courts. The lawyers will then draft the application for authorization with the help of the representative. In it, they will describe the people they wish to represent in the class action. This is known as the "class definition".

The application for authorization must explain to the court:

1. the factual context of the case;
2. what they accuse the defendants of;
3. the representative's specific situation;
4. the reasons why this person would represent the members well, and, above all;
5. the criteria to be a class member.

AUTHORIZATION TO INSTITUTE A CLASS ACTION

An application for authorization to institute a class action is necessary to obtain the Court's authorization to represent class members before the courts. Without this authorization, every class member would have to sign a mandate of representation directly with the law firm.

When the Court authorizes the class action, it is in effect granting a judicial mandate for class counsel in the name of everyone who meets the criteria of the class definition. The Court will also appoint the representative, who will ensure that all decisions taken in the class action are in the interests of the class members. This is called the "authorization judgment".

DO YOU HAVE TO DO ANYTHING TO BE PART OF A CLASS ACTION?

In Quebec, you don't have to do anything to be a member of a class action. All you have to do is meet the criteria of the group definition to be part of the class action. What's more, following the authorization judgment, members must exclude themselves from a class action in which they do not wish to participate. This is also known as opting-out. Otherwise, they will be bound by all decisions rendered by the Court in the class action.

Most Canadian provinces have the same system as Quebec: a class member is automatically subject to the judgments rendered in the class action, unless they opt out. These provinces are:

• Ontario,
• Manitoba,
• Saskatchewan,
• Alberta,
• British Columbia,
• Prince Edward Island and
• Nova Scotia.

The exceptions are Newfoundland and Labrador, and New Brunswick. These provinces have two different rules, depending on whether a person resides there or not. Residents of these provinces automatically participate in the class action, whereas people living outside these provinces must request to be included in the class action in order to participate.

IMPORTANT! Even if you are automatically a member of a class action, keep an eye out for any judgments in the case. You may have to submit a claim to obtain your monetary compensation if the class action is successful.

WHAT DOES BEING A CLASS MEMBER ENTAIL?

Being a class member means that all judgments rendered in this class action apply to you and determine your rights.

If the person representing the members wins the class action or reaches a settlement out of court, all class members will benefit from it.

If the Court dismisses the class action, all class members will have lost their case and will not be able to bring their own action.