CIBC reportedly just appointed its defence counsel in Vancouver.
The lead lawyer fighting CIBC (Kieran Bridge) also sued Coast Capital Savings for ambiguous IRD contract language and for overcharging on mortgage penalties. Coast won the penalty portion of that case on appeal. It was a legal battle that spanned a number of years.
When asked if the Coast loss lessens his chances of prevailing against CIBC, Bridge told us, “No. The case is distinguishable” because Coast had “different language” in their contract than CIBC.
Theoretically, if CIBC were to settle, it would probably take at least a year for class members (CIBC Mortgage customers who paid penalties since 2005) to see any money back, says Bridge.
CIBC spokesman Rob McLeod told Ellen Roseman: “CIBC believes this suit to be without merit and we intend to defend ourselves vigorously…CIBC’s disclosure of how prepayment charges are calculated is clearly laid out in our mortgage documentation.”