Ontario Court Nixes CIBC Overtime Class Action

A class action proceeding by bank tellers against the Canadian Imperial Bank of Commerce for $600 million in unpaid overtime wages has been dismissed by an Ontario Superior Court judge.

Madame Justice Joan Lax ruled against certification of the class action proceeding yesterday, holding that inadequate "common issue" presented among the individual claimants in the class to justify continuation of the class action.

The ruling allows the overtime pay claimants to bring subsequent individual actions for damages against the bank.

The Toronto Star summarized the decision:

Justice Joan Lax ruled the case didn't meet the test to be a class-action lawsuit.

"While some of the certification requirements could be satisfied, the action lacks the essential element of commonality," Lax wrote in the decision released today.

"In my opinion, there is no asserted common issue capable of being determined on a class-wide basis that would sufficiently advance this litigation to justify certification."

Financial Post also reported on the decision:

An Ontario Superior Court Justice has refused to certify a $600-million overtime class-action lawsuit against the Canadian Imperial Bank of Commerce.

It's a ruling that could stymie other overtime class-action suits that are pending in Canadian courts, including one against the Bank of Nova Scotia..

Justice Joan Lax rejected the suit brought by CIBC employee Dara Fresco on the basis that "this is not a proper case for certification and that a class proceeding is not the preferable procedure for resolving the claims of class members for unpaid overtime."

Bloomberg reports that CIBC shares "rose 0.7 percent after the ruling was released. The shares rose C$1.17 to C$54.19 in trading on the Toronto Stock Exchange today."

We previously reported on the case, Fresco v. Canadian Imperial Bank of Commerce, 07-cv-334113PD2, Ontario Superior Court of Justice (Toronto) in November 2007. See: Update: CIBC Employees' Overtime Class Action.

We will post the ruling of Madame Justice Lax when it is available online.

- Garry J. Wise, Toronto

Visit our Toronto Law Firm website: www.wiselaw.net

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Update: CIBC Employees' Overtime Class Action

Lawyers representing the lead plaintiff in the pending, multi-million dollar class action against CIBC over unpaid overtime wages have filed documents in Ontario's Superior Court of Justice which "they believe should persuade judges to certify the case as a class action."

In a news release on Monday, they advised:

This is the largest unpaid overtime class action ever launched in Canada. It is being brought on behalf of current and former non-management, non-unionized employees of CIBC in Canada who are or were tellers or other front-line customer service employees (limited to personal bankers, commercial bankers and account executives) working at CIBC retail branch offices across Canada.

Bloomberg also reports

Nov. 19 (Bloomberg) -- Canadian Imperial Bank of Commerce routinely didn't pay overtime to non-management employees, in violation of Canadian law, lawyers in Canada's biggest overtime class-action suit said in court filings today.

In hundreds of interviews with current and former CIBC employees, lawyers found the experience of ``regularly working overtime without pay is a common one across Canada,'' Douglas Elliott, lead lawyer in the case said in a statement.

...In a bid to have the suit certified as a class action, lawyers in the case today filed testimony in Ontario Superior Court from CIBC employees, as well as affidavits by three experts regarding the prevalence of unpaid overtime in the Canadian banking industry.

The case is Fresco v. Canadian Imperial Bank of Commerce, 07-cv-334113PD2, Ontario Superior Court of Justice (Toronto).

- Garry J. Wise, Toronto

Visit our Toronto Law Firm website: www.wiselaw.net

EMPLOYMENT LAW • CIVIL LITIGATION • WILLS AND ESTATES • FAMILY LAW & DIVORCE