Clarity on the Enforcement of Settlements
In
3113736 Canada Ltd. v Cozy Corner Bedding Inc., the
Ontario Court of Appeal provided an answer about whether a class
member is bound by a class action release even if the party did not
receive notice of the class action, the settlement which contained
the release, or the right to opt-out. The Court held that while
notice to class members must be adequate, the lack of actual notice
to any particular class member does not prevent the class from
being bound where sufficient steps have been taken to provide
adequate notice.
This case involved a manufacturer and supplier of foam products,