The Steps of a Class Action in Quebec: From Filing to Compensation
A class action in Quebec follows a structured process with five main steps, allowing a group of individuals who have suffered similar harm to seek justice collectively. Below is a clear and concise explanation of each step, in accordance with the provisions of the Code of Civil Procedure (CQLR, c. C-25.01).
1.Authorization of the Class Action
The first step involves obtaining authorization from the Superior Court to proceed with a class action. A motion, prepared by the plaintiff’s lawyer, is filed and must meet four cumulative criteria (article 575 C.C.P.):
- Similarity of claims: The claims of the group members raise sufficiently similar questions of law or fact.
- Serious appearance: The motion must not be manifestly unfounded.
- Suitability of the class action: The class action is the most appropriate means given the nature of the claims and the group’s composition.
- Capacity of the representative: The plaintiff must be able to adequately represent the group’s interests.
The motion must be served to the defendant at least 30 days before the hearing, accompanied by a notice (article 574 C.C.P.). Lawyers may proactively initiate a class action, particularly to stop alleged illegal practices, thereby enhancing access to justice.
2.Certification by the Court
If authorization is granted, the judge issues a certification judgment that establishes the key elements of the class action (article 576 C.C.P.):
- Definition of the group: Identification of the members included in the class action.
- Designation of the representative: Official appointment of the plaintiff representing the group.
- Issues in dispute: Specification of the main legal or factual questions.
- Relief sought: Remedies or compensation requested.
This judgment governs the proceedings and binds all group members, except those who choose to opt out.
Ce jugement encadre le déroulement du recours et lie tous les membres du groupe, sauf ceux qui choisissent de s’exclure.
3.Notice to Members
A public notice is published to inform potential group members of the class action, as per the certification judgment (article 580 C.C.P.). This notice, disseminated through the Class Action Register, newspapers, or websites, specifies:
- The description of the group, allowing individuals to determine if they are part of it.
- The right to opt out of the class action by a court-set deadline, by submitting an official form. Opting out allows individuals to pursue individual actions but excludes them from any compensation from the class action.
The court may adjust the group’s definition during the process, which may exclude certain members.
4.Trial or Settlement
After authorization, a statement of claim must be filed within three months, or the action becomes void (article 578 C.C.P.). This statement details the facts of the dispute and the compensation sought.
The case enters the trial phase, where a judge reviews evidence, hears witnesses, and listens to arguments. This often complex process can last several years. At any time, the parties may reach a settlement, which must be approved by the court to ensure fairness (article 590 C.C.P.). If the judgment is favorable, the court determines the amount of compensation and its distribution method. The judgment may be appealed to the Quebec Court of Appeal or, in some cases, the Supreme Court of Canada.
5.Distribution of Compensation
Once the class action is won (by judgment or settlement) and no appeals are pending, compensation is distributed to eligible members without requiring individual action (article 596 C.C.P.). The distribution is collective, based on criteria set by the court, without individualized damage assessments, simplifying the process and reducing costs.
A new notice is published (via the Class Action Register, newspapers, websites, or the Canadian Bar Association’s Class Action Database) to inform members of the terms and deadlines for claiming their share. Members cannot assign their compensation to a third party.
Recommendation: Regularly check the class action’s website or the law firm’s website to stay updated and meet deadlines.
Call to Action: Check our ongoing cases to see if you are affected.
Costs of a Class Action: Do You Have to Pay to Participate?
Class actions in Quebec are designed to facilitate access to justice, particularly for individuals with limited resources. Below is a clear explanation of the associated costs and funding mechanisms.
No Direct Costs for Members
Representation by a lawyer is mandatory in a contentious class action (article 87(2) C.C.P.), but group members incur no direct costs. Funding is based on a contingency fee agreement: lawyers are only paid if the case succeeds (favorable judgment or settlement). Fees and other expenses (experts, administration, public notices, etc.) are then deducted from the total amount obtained (article 593 C.C.P.).
If the case fails, the lawyers bear all costs, with no claims against members. Additionally, if the class action is dismissed, members are not required to compensate the opposing party, eliminating any financial risk.
Role of the Fonds d’aide aux actions collectives (FAAC)
The FAAC, established in 1978, provides financial support for certain class actions. The group’s representative may request assistance, subject to FAAC approval. The funds cover various expenses (experts, notices, etc.). In return, the FAAC recovers the advanced amounts and a percentage of the amounts obtained through judgment or settlement.
Regulation of Legal Fees
Lawyers’ fees are subject to court approval to ensure reasonableness (article 593 C.C.P.). The judge considers several factors:
- Expertise and qualifications of the lawyers.
- Time and effort invested.
- Complexity of the case.
- Importance of the case to the members.
- Responsibility assumed by the lawyers.
- Results achieved.
According to case law, fees ranging from 25% to 38% of the awarded amount are generally deemed reasonable. This transparency protects the interests of group members.
