Case Studies On Class Actions Stemming From Criminal Conduct
1. Krawchuk v. Scherbak, 1993 (Canada)
Court: Supreme Court of Canada
Area: Criminal conduct leading to civil liability / class actions
Facts:
The plaintiffs were relatives of people who suffered harm from a hit-and-run accident.
The defendant had a history of reckless driving and previous criminal charges for impaired driving.
The victims sought class certification to claim damages collectively.
Issues:
Can civil plaintiffs pursue damages collectively for harm caused by criminal conduct?
Can prior criminal behavior be relevant in establishing liability?
Decision:
The Court allowed that civil claims could proceed even if the conduct was criminal, provided there was a clear link between wrongdoing and damages.
The class action certification was denied in this case due to individualized damages assessment but affirmed the principle that criminal acts can trigger civil liability.
Importance:
Set precedent for civil class actions arising from criminal acts.
Demonstrated limits of class certification when harm is individualized.
2. Severson v. Canadian National Railway Co., 2002 (Canada)
Court: Ontario Superior Court of Justice
Area: Criminal negligence / workplace safety
Facts:
CN Railway employees were accused of violating safety laws, leading to several derailments and injuries.
Victims sought class action damages based on criminal negligence and regulatory breaches.
Issues:
Can criminal negligence be used as a basis for civil claims in a class action?
Does regulatory violation suffice for collective damages claims?
Decision:
Court ruled that criminal negligence can underpin civil liability, but class action status requires commonality of harm.
Damages must still be proven per plaintiff, but class certification was partially granted for administrative efficiency.
Importance:
Clarified that criminal acts with broad impact on a group of victims can support class actions.
Paved the way for collective claims in workplace safety incidents.
3. Gordon v. Canada (Attorney General), 2013
Court: Federal Court of Canada
Area: Sexual abuse / institutional liability
Facts:
Former students at a Canadian residential school filed a class action against the government for historical sexual abuse and physical assault.
Many of the acts were criminal in nature, but occurred decades earlier.
Issues:
Can civil claims be brought collectively for criminal acts long past?
How do statutes of limitations interact with criminally-based civil claims?
Decision:
Court allowed the class action to proceed despite the historical nature of the abuse.
Statutes of limitation were extended due to the traumatic nature of abuse and delayed reporting.
Importance:
Set precedent for class actions based on sexual abuse in institutions, a major criminal-civil intersection.
Established the principle that collective civil remedies can address systemic criminal wrongdoing.
4. Hollick v. Toronto (City), 2001
Court: Ontario Court of Appeal
Area: Criminal acts leading to property damage / class actions
Facts:
A group of tenants sued the city and property managers after vandalism and assaults by known gang members in public housing.
They sought class certification for damages caused by criminal acts.
Issues:
Can municipalities be held liable for failure to prevent foreseeable criminal acts?
Can a class action proceed where harm varies by individual?
Decision:
Class certification was granted; the court emphasized that foreseeable criminal conduct creating common harm can justify a collective claim.
Liability of the city was recognized not for committing crimes, but for failing to take preventive measures.
Importance:
Extended the reach of class actions to include criminal conduct indirectly causing group harm.
Influenced later cases involving negligent security and municipal liability.
5. M.N.R. v. Her Majesty the Queen, 2010 (Federal Court, Canada)
Area: Criminal tax fraud / class actions
Facts:
Investors were defrauded by a criminal tax scheme involving misrepresentation of returns and tax credits.
Plaintiffs attempted a class action for losses caused by the fraud.
Issues:
Can victims of corporate or financial crime pursue collective civil damages?
Does ongoing criminal prosecution impact civil class certification?
Decision:
Court allowed the class action to proceed while criminal proceedings were ongoing.
Emphasized the civil system can provide restitution even if criminal punishment is separate.
Importance:
Demonstrates the intersection of white-collar crime and class action remedies.
Supports victim recovery even where criminal law may not fully compensate.
6. R. v. Ghomeshi Settlement, 2016 (Canada)
Area: Sexual harassment / criminal allegations
Facts:
Alleged sexual assault victims of Jian Ghomeshi sought a civil settlement following criminal proceedings.
Criminal charges were eventually dismissed due to lack of evidence.
Issues:
Can alleged victims pursue civil or class remedies after acquittal in criminal cases?
How are reputational and psychological harms quantified collectively?
Decision:
Civil claims were settled through an individual and collective settlement, though no criminal conviction occurred.
Settlement included financial compensation and non-monetary measures.
Importance:
Shows that class actions may proceed independently of criminal trial outcomes.
Significant for sexual misconduct and workplace harassment cases.
7. Vaughn v. I.C.B.C., 2008 (British Columbia)
Area: Criminal negligence / product liability
Facts:
Victims of impaired drivers sued a provincial insurance corporation for failing to enforce driver licensing and monitoring, which indirectly allowed criminal conduct.
Decision:
BC Supreme Court allowed the class action to proceed, recognizing systemic negligence that enabled criminal acts as a valid basis.
Importance:
Expanded the scope of class actions to preventive liability in cases involving foreseeable criminal acts.
Summary Table
| Case | Court | Type of Criminal Conduct | Outcome | Significance |
|---|---|---|---|---|
| Krawchuk v. Scherbak, 1993 | SCC | Reckless driving / hit-and-run | Civil liability possible | Civil class actions can stem from criminal acts |
| Severson v. CN Railway, 2002 | Ontario SC | Criminal negligence | Partial class certification | Criminal negligence can underpin collective claims |
| Gordon v. Canada, 2013 | Federal Court | Sexual abuse | Class action allowed | Historical criminal acts justify collective civil remedy |
| Hollick v. Toronto, 2001 | ONCA | Gang-related property crimes | Class certification granted | Foreseeable criminal acts allow collective claims |
| M.N.R. v. Canada, 2010 | Federal Court | Tax fraud / financial crimes | Class allowed during prosecution | White-collar crime victims can seek restitution |
| R. v. Ghomeshi Settlement, 2016 | Civil Settlement | Sexual assault allegations | Settlement reached | Civil claims independent of criminal conviction |
| Vaughn v. I.C.B.C., 2008 | BC Supreme Court | Criminal negligence | Class action allowed | Preventive liability for systemic failures |
These cases illustrate different ways class actions arise from criminal conduct:
Direct harm: Victims of assault, sexual abuse, or hit-and-run.
Systemic negligence: Failure to prevent criminal acts (municipalities, insurers, regulators).
Financial crimes: Fraud, tax schemes, and white-collar crime.
Historical crimes: Abuse in institutions, enabling collective remedies despite time lapse.
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