Class Action Settlements in Canada Explained

Class action settlements in Canada work much like those in the US: a representative plaintiff sues on behalf of a group, the case settles, a judge approves the deal, and class members file claims with a court-appointed administrator. The big difference is that Canada has no single national class action statute. Each province has its own class proceedings legislation, Quebec has its own procedure under its Code of Civil Procedure, and the Federal Court has its own rules.

The provincial systems

Most common law provinces have a Class Proceedings Act. Ontario and British Columbia handle a large share of national cases, but courts across the country certify and approve settlements. A case usually has to be certified before it can proceed as a class action, which means a judge decides whether the claims raise common issues and whether a class action is the preferable way to resolve them.

• ✓Certification. The court checks that there's a cause of action, an identifiable class, common issues, a suitable representative plaintiff, and that a class proceeding is the preferable procedure.
• ✓Opt-out classes. Residents of the province are generally included unless they opt out by a deadline. Some provinces have historically treated non-residents differently, which is why class definitions matter.
• ✓National classes. A single case can cover people across Canada, and overlapping cases in several provinces are often coordinated or settled together.
• ✓Settlement approval. A settlement has no effect until the court approves it as fair, reasonable and in the best interests of the class.

How Quebec is different

Quebec handles class actions, called actions collectives, under its Code of Civil Procedure rather than a separate act. Instead of certification, a case goes through an authorization stage, which is generally considered a lower threshold than certification elsewhere. Quebec also has a public fund that can help finance class actions, and notices are published in French as well as English. Quebec residents are often covered by a parallel case even when a national settlement is negotiated in another province.

Filing a claim as a Canadian

1. 1Find the official notice, usually published by the administrator and the class counsel's website, often in both English and French.
2. 2Check the class definition: dates, products, and which provinces or residents are included.
3. 3File on the administrator's site or by mail, with any proof the settlement requires.
4. 4Watch for payment by cheque or e-transfer, depending on what the settlement offers.

Many Canadian settlements are for products also sold in the US, but Canadian and US cases are separate. Being in a US settlement doesn't make you a member of the Canadian one, and vice versa. If you live in Canada and want to claim in a US case, our guide on filing from outside the US explains when that's possible.

Fees and costs

Class counsel in Canada typically work on a contingency basis, and their fees must be approved by the court, often as a percentage of the settlement. Costs rules differ by province: some provinces limit the costs a losing plaintiff has to pay, while others follow the usual rule that the loser pays some of the winner's costs. None of that affects you as a class member filing a claim; you don't pay anything to file.

Watch for scams and deadlines

As in the US, a real administrator never asks for a fee to release your money. Deadlines are strict, and late claims are usually rejected unless the court allows otherwise. Our guide to settlement scams applies on both sides of the border.

How Canadian settlements typically pay

Canadian settlements use many of the same structures you'd see in the US: fixed payments per claimant, pro rata shares of a fund, reimbursement of documented losses, or a mix. Some settlements pay automatically from the defendant's records, particularly for bank and telecom customers. Others need a claim form with proof of purchase.

• ✓Distribution protocol. The court approves a plan for how the fund is shared, much like a plan of allocation in the US.
• ✓Leftover money. Unclaimed funds may be redistributed to claimants or paid to an organization connected to the purpose of the case, with the court's approval. In Quebec, the public class action fund is typically entitled to a share of unclaimed amounts.
• ✓Language. Claim forms and notices are usually available in English and French.

As anywhere, the official notice is the authority on what you can claim. If you're unsure whether you're in a class or what a settlement covers, contact the administrator or class counsel listed in the notice.

SettleScout covers Canadian settlements as well as US ones. Add the brands, banks and services you use, and the app will match you to open Canadian cases, show the deadline and remind you before it closes.