Should Representative Plaintiffs Receive More?

By: Soroush Seifi · January 27, 2012 · Filed Under Class Action · Add Comment 

A.  INTRODUCTION

Under the Ontario Class Proceedings Act, 1992 (“CPA”) [1], the Representative Plaintiff (“RP”) is a member of the class that in most instances commits to a bigger responsibility than all other class members.  Under section 5(e) of the CPA:

(e) there is a representative plaintiff or defendant who,

(i) would fairly and adequately represent the interests of the class,

(ii) has produced a plan for the proceeding that sets out a workable method of advancing the proceeding on behalf of the class and of notifying class members of the proceeding, and

(iii) does not have, on the common issues for the class, an interest in conflict with the interests of other class members. 1992, c. 6, s. 5 (1).

The CPA is clear in that the RP not merely put his/her name to proceedings.[2]  Ideally, the undertaking is one of giving instructions to counsel and making decisions that affect the rights and potential success for the whole of the class.[3]  In many situations the RP is the driving force in identifying the claim, choosing counsel, advancing the claim and in bringing the proceeding to result.[4] In Ontario courts show reluctance in awarding more compensation to the RP and where there is quantum meruit[5] basis for this higher compensation, portions of disbursements are usually awarded.[6]  At the far end of the deleterious effects weighing against more compensation for RPs is the potential for corruption similar to what lead to the conviction of top Securities Class Actions counsel in United States (US).[7]

 

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