Government to draft new class action legislation

Premier Roger Grimes and Justice Minister Kelvin Parsons announced today government's intention to draft class action legislation.

"Government's goal is to draft a comprehensive Class Proceedings Act that would eliminate the guess work associated with the province's current regime, a combination of the Rules of Court and common law, and replace it with a fair and logical framework for class actions," said Premier Grimes.

The premier noted a recent case involving St. John's resident Bill Kelly in an action against an insurance company illustrates the problem. "Mr. Kelly, acting on his own behalf and on behalf of approximately 20,000 others, sought to recover unearned insurance premiums from the company by way of a class action. Unfortunately, our current regime did not permit such an action. This new legislation will correct that problem," said Premier Grimes. "The proposed Class Proceedings Act will address possible inequities of the common law approach to this issue. In fact, it is Mr. Kelly's efforts in this area that prompted government to consider this legislation."

"Government recognizes that the applicable law regime in place in this province cannot accommodate a class action lawsuit," explained Minister Parsons. "Class action legislation would allow a single plaintiff, as a representative for many with similar claims, to move forward with a claim that, when decided, settles all of the group's claims. Currently, Newfoundland and Labrador does not have a statutory class action regime which would allow group claims to proceed."

Three provinces have class action legislation in place: Quebec, Ontario and British Columbia. Other provinces are considering class action legislation, including Prince Edward Island, Saskatchewan, Manitoba and Alberta. 

"It is this province's intention to use the Uniform Class Proceedings Act, prepared by the Uniform Law Conference of Canada, as a model for our proposed legislation," said Minister Parsons. "The UCPA draws from the best aspects of the Ontario and British Columbia legislation and is a model other provinces are also exploring."

Government will consult with the judges of the Newfoundland Supreme Court, the Law Society of Newfoundland, the Newfoundland Branch of the Canadian Bar Association and consumer groups prior to preparation of draft legislation.

Media contact: 

Carl Cooper, Office of the Premier, (709) 729-3960
Lynn Barter, Communications, (709) 729-0084

2001 07 06                                                      2:45 p.m.