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CTS of Canada Plant Closure Action

On behalf of three class plaintiffs, Cavalluzzo LLP has filed a class action against CTS of Canada, a Canadian automotive parts manufacturer operating a plant in Mississauga.  The claim is on behalf of the over 100 employees currently or recently employed at the plant and alleges that the manner of their termination by CTS of Canada and four related employers based in Canada and the United States breaches contractual and statutory obligations the companies owed to the employees.

With respect to one of the breaches alleged against the defendants the failure to notify the Ministry of Labour for over a year of the plan to close the plant and move the work to Mexico, the class action appears to be the first of its kind in Canada.

A copy of the Amended Statement of Claim can be viewed here.

SUMMARY JUDGMENT GRANTED IN FAVOUR OF EMPLOYEES

We are pleased to report that summary judgment has now been granted in favour of the former CTS employees covered by the CTS Class Action claim. A copy of the Reasons for Decision of Justice Sproat dated September 26, 2017 can be found here.  The next steps in the class action are to be determined, and we will update this site with any news as it becomes available.

CTS LAUNCHES APPEAL OF RULING

On September 26, 2017, CTS served a notice of its intent to appeal the summary judgment decision. A copy of its Notice of Appeal can be found here.  The appeal is not expected to be heard until the Spring.

The Defendants' written argument for its appeal of the summary judgment decision is contained in a factum, which can be accessed here.

The Plaintiffs' factum or written argument can be found here.   The Court of Appeal will hear this appeal on May 15, 2018.

PLAINTIFFS SEEK SUMMARY JUDGMENT

The Plaintiffs have brought a motion for summary judgment to resolve all of the common issues raised in the class action.  The Plaintiffs' written argument is contained in a detailed factum, which can be accessed here.

The Defendants' factum in response can be read here.

Much of the evidence in support of the motion is to be found in a four volume "Motion Record" accessible from the following links:

If you wish to view the Defendants' Motion Record containing its evidence for the motion, please click here.

The Plaintiffs have filed a Reply Record which can be accessed here.

Finally, a Supplementary Record of additional evidence, in two volumes, is also available, here:

CTS APPEAL IS ALLOWED IN PART

The Court of Appeal heard the Defendants' appeal of the summary judgment decision on May 15, 2018.  The decision, which was released on September 19, 2018, can be accessed here..

The Court of Appeal allowed the Defendants' appeal in part, finding that the motion judge had fallen into error when he found that CTS was required to serve and post the Form 1 information document on April 17, 2014, being the date that the former CTS employees received notice of termination.  The Court of Appeal agreed with the Defendants' submission that CTS was only required to serve and post the Form 1 information document on the first date of the eight week statutory notice period (on or about May 1, 2015).

With respect to the other issues on appeal, the Court of Appeal upheld the motion judge's decision, which found in favour of former CTS employees.

The next steps in the class action are to be determined, and we will update this site with any news as it become available.

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