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 heard this appeal on May 15, 2018 and allowed the appeal in part. The reasons for decision can be read here.
The Class has sought permission, or leave to appeal this decision to the Supreme Court of Canada. We expect a ruling on this leave application in the Spring of 2019.
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: