Propane Explosion and Class Actions

The recent propane explosion in Toronto and the widespread damage the explosion caused has made people wonder what the best way is for the people injured to sue.

Because so many people have been harmed the best route, procedurally, may be a class proceeding or class action.

A class proceeding allows one person to start a lawsuit on behalf of themselves as well as all others who have suffered similar harm arising from a situation common to the class members.

This means that a single person can commence a class proceeding on behalf of hundreds or thousands of people.

What triggers a class action? Usually it is something you hear as breaking news such as:

􀀞 Major fire that has sent a smoke plume over a wide area.

􀀞 Environmental spill.

􀀞 "Insider trading" by senior officers of a company.

􀀞 Multi-vehicle crash on a highway.

􀀞 Blood contamination issues.

􀀞 Train derailment.

􀀞 Food poisoning.

􀀞 Or, as now, a propane explosion.

Class actions are fairly new in Canada – Ontario brought class action legislation into force in 1992, following Quebec's 1978 legislation. The United States has had class actions since the 1930's.

Ontario, Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Quebec and Saskatchewan are the only eight provinces in Canada with class proceedings legislation in effect. Of course, the recent propane explosion is not likely to have injured anyone outside of Toronto so only Ontario's legislation is relevant.

A critical question is whether there is sufficient similarity among the potential members of the class – the people harmed – that a single person can represent the entire class. There must be enough common issues among all the members of the class to make a class action or proceeding the preferable way of going ahead.

All that said, before any class action goes ahead the claim itself has to be worthwhile.

In news reports about the potential propane class action all sorts of defendants have been mentioned. Certainly the propane company makes sense as a defendant but suing the City of Toronto or Ontario is far more problematic. While it may be that some government body or regulator bears responsibility winning that sort of claim will be difficult at best. While the class action lawyers will have to decide it may be the best approach is to go after the propane company and related parties.