CIBC Mortgage Penalty Class Action: Update

lawsuitLast October a class action was launched against CIBC Mortgages Inc. alleging, among other things, “extremely vague” and “unenforceable” prepayment clauses in customers’ mortgage contracts.

(See: CIBC mortgage penalty class action)

Here is the latest on that case from the plaintiff’s lead counsel in B.C., Kieran Bridge.

Says Mr. Bridge:

  • “There have been hundreds of contacts from CIBC/FirstLine/President’s Choice mortgage customers (wishing to join the class action).”

  • “We are getting our Certification Application materials into final form, and expect to have them signed next week.”
  • “We will schedule a hearing before the B.C. case management Judge in the early fall, to set a date for the certification hearing.” (Bridge notes that, “Until a case is certified, it is only an “intended” class action…It is not a class action until it is certified as such.”)
  • “The parallel Ontario and Quebec actions are still proceeding…but it is likely that the first certification hearing will be in B.C.”
  • “We hope to have the certification hearing in B.C. in late 2012 or early 2013.”
  • “Once the case is certified, it’s hard to predict how long any resolution might take.”
  • “The defendant has not yet filed a statement of defence or any affidavits, so their position on the substantive issues is unknown at this point. In a class action, the defendant does not have to file a defence until after the certification hearing.”

We’ll check in on this case again as developments merit.

Robert McLister, CMT

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