What is a class action lawsuit and how does it work in Ontario?
A class action is a lawsuit where one or more representative plaintiffs sue on behalf of a larger group of people (the "class") who share similar legal claims against the same defendant. In Ontario, class actions are governed by the Class Proceedings Act, 1992. The goal is to resolve common issues efficiently in a single proceeding rather than requiring every affected person to sue separately.
To proceed as a class action, the case must be certified by the court. Certification is not about the merits — it is a procedural step where the court decides whether the case is appropriate to be heard as a class action. The court looks at whether there is an identifiable class, common issues, and whether a class proceeding is the preferable procedure.
If certified, class members are notified and can usually opt out if they prefer to pursue their own claims. Proceeds from a successful class action are distributed among class members, sometimes through a claims process. Class actions often arise from product defects, data breaches, price-fixing, or institutional misconduct. If you believe you have been harmed as part of a larger group, a litigation lawyer can advise whether a class action is underway or appropriate.
Key takeaways
- Class actions allow one plaintiff to sue on behalf of a defined group.
- The court must certify the proceeding before it can proceed as a class action.
- Class members are notified and can typically opt out.
- Class actions are common in product liability, data breaches, and consumer protection matters.