Justice Minister announces Class Actions Legislation

Justice Minister Kelvin Parsons today announced government is moving forward to put in place the Class Actions Act.

The Act was introduced this week in the House of Assembly and debate on the new legislation has begun.

Government recognizes that the current law in place does not accommodate a class action lawsuit and has, therefore, developed a comprehensive Class Actions Act that will provide a new framework for class action suits. Consultations with various stakeholders on the Class Proceedings Act and a comparison with other provinces having class action legislation were explored.

Class actions are lawsuits where the cases of many are brought forward and litigated by one or several representative plaintiffs.

"By litigating all of the matters at the one time, a great burden can be lifted from the court system and thousands of people can have their claims decided at a much lower cost than before," said Minister Parsons. "This will eliminate the guess work associated with the province�s current regime and will address the possible inequities of the common law approach."

Class action cases make pursuing court action more affordable and will allow groups to proceed, thereby easing the individual burden of litigation.

The great need for the creation of new legislation was illustrated by a recent court action involving St. John�s resident Bill Kelly, who led the attempt to recover unearned insurance premiums when Hiland Insurance closed it doors.

"On behalf of the 20,000 consumers who were victimized in the Hiland Insurance debacle, we think this is a red letter day for the people of this province," said Bill Kelly. "Never again will ordinary Newfoundlanders and Labradorians be left on the sidelines in such serious issues. We are grateful to the Minister of Justice and to the premier for bringing this much needed legislation to Newfoundland and Labrador."

"The Class Actions legislation will remove a series of hurdles from our justice system which have denied citizens of this province easier access to the judicial system," said Minister Parsons.

Media contact: Edwina Bateman, Communications, (709) 729-6985.

2001 11 21                         11:30 a.m.