A class action has been commenced against General Motors of Canada Limited ("GMCL") on behalf of more than 3,300 salaried and executive retirees, whose post-retirement benefits were reduced and eliminated over 2008-2009. The lawsuit alleges the post-retirement benefits were vested and that GMCL had no contractual right to unilaterally reduce and eliminate the post-retirement benefits.

On October 25, 2011, the Case Management Judge, Justice George Strathy, released his decision ordering that the class action be certified on consent. Justice Strathy appointed Joseph O’Neill, who worked for GM for almost 40 years, as the representative plaintiff in the class action.

The class is defined as follows:

(a) all salaried and executive retirees of GMCL who retired from GMCL between January 1, 1995 and October 20, 2011, and

(b) all surviving spouses and dependent children beneficiaries of any deceased persons described in (a),**

but excludes:

(i) former employees of Canadian Automotive Manufacturing Inc. (“CAMI”) who became employees of GMCL as a result of the amalgamation of CAMI and GMCL effective January 1, 2011 and

(ii) retirees of divested units Electro-Motive Canada Co (“EMC”, formerly London Diesel); General Dynamics Land Systems – Canada Corporation (“GDLS”, formerly GM Defense); Peregrine Oshawa Inc. (and its successor Automotive Component Systems of Canada, Inc (“ACSYS”); or Peregrine Windsor Inc. (and its successor Lear Corporation Canada Ltd.) where post-retirement benefits are not provided by GMCL.

** For greater clarity, this means: in respect of people described in paragraph (a) who died prior to October 20, 2011, all surviving spouses of such deceased people, and where there is no surviving spouse or where the surviving spouse died prior to October 20, 2011, all dependent children of such deceased people described in paragraph (a), in all cases such surviving spouses and dependents being persons eligible under GMCL’s benefit plans without regard to the changes to eligibility requirements under GMCL’s benefit plans effective January 1, 2009.

You can read Justice Strathy's decision here.

The Notice of Certification of a Class Proceeding is available here.

The parties have agreed to a timetable for proceeding with the class action. The timetable may be amended on consent or by the Case Management Judge:

Step	Date
Case Conference to determine the terms of the certification order, the litigation plan, and the content and type of the notice of certification	30 days after the decision approving the settlement of the certification motion
Delivery and publication of Certification Notices	30 days after the decision approving the settlement of the certification motion
Delivery of the Statement of Defence	45 days after the decision approving the settlement of the certification motion
Reply (if any)	30 days after the delivery of the Statement of Defence
Opt-Out Deadline	60 days after the delivery and publication of Certification Notices
Production of Documents as Contemplated by Paragraph 9 of the Settlement Agreement of the parties dated October 15, 2011 re: Certification Motion	30 days after the delivery of the Reply (if any), and in any event within 60 days of delivery of the Statement of Defence
Examination for Discovery (in accordance with paragraph 9 of the Settlement Agreement of the parties dated October 15, 2011 re: Certification Motion)	180 days after the decision approving the settlement of the certification motion

 

A copy of the statement of claim is available here.

Notice of Certification of a Class Proceeding is here.

The Order of Justice Strathy, dated November 7, 2011, is here.

For more information, contact Louis Sokolov or Christine Davies.

For more information about class actions generally, click here.