Alberta court certifies class-action lawsuit against the provincial government for COVID-19 health orders that impacted businesses during the pandemic

Rath & Company, the law firm representing Alberta business owners in a class action lawsuit against the provincial government over COVID-19 restrictions, has cleared a crucial legal hurdle.

Justice Colin C.J. Feasby of the Court of King’s Bench of Alberta certified the case, allowing it to proceed as a class action.

The lawsuit, led by plaintiffs Rebecca Ingram and Christopher Scott, challenges the authority of Alberta’s government in implementing business restrictions through Chief Medical Officer of Health (CMOH) orders, which the plaintiffs allege were unauthorized and illegally imposed.

The class action seeks compensation on behalf of a broad group of Alberta business owners, claiming that the health orders, issued ostensibly under public health directives, resulted in devastating financial losses.

In a ruling that highlights concerns around government accountability, the court confirmed that the lawsuit can proceed on multiple claims, including negligence, bad faith, and misfeasance in public office.

The lawsuit’s roots go back to a ruling by Justice Romaine in 2023 (Ingram v. Alberta [2023]), which found that key pandemic health orders were issued outside the legal authority of the Public Health Act. Rather than being made independently by the CMOH, Deena Hinshaw, the orders were shown to have been directed by the Alberta Cabinet, according to Justice Romaine’s findings.

The plaintiffs allege that the CMOH orders were improperly authorized and were issued in a way that obscured Cabinet’s role, thus avoiding political accountability during a critical public health crisis.

A key component of the plaintiffs’ argument is that Alberta’s Cabinet acted in bad faith by issuing these orders under the guise of health directives to avoid democratic oversight. In doing so, they argue, the government failed to protect Alberta business owners’ rights to property and due process under the Alberta Bill of Rights. Justice Feasby’s decision allows these claims, as well as those for punitive damages, to be addressed in court.

The Court’s certification encompasses several types of claims, including allegations of negligence and misfeasance. It specifically allows the plaintiffs to pursue punitive damages, which are intended to hold the government accountable and discourage similar conduct in the future. Unlike compensatory damages that vary by individual losses, punitive damages in a class action address the alleged wrongful intent and actions affecting the whole class.

The certified class includes “all individuals who owned, in whole or in part, a business in Alberta that was subject to full or partial closure, or operational restrictions, mandated by the CMOH Orders between March 17, 2020, and the date of certification.”

Justice Feasby’s decision paves the way for the case to proceed to trial, where the claims and evidence will be examined more closely. The certification does not decide on the merits of the case but rather affirms that the plaintiffs meet the legal threshold to pursue their claims as a unified class.

Rath & Company is encouraging any affected business owners to retain records of losses related to the CMOH orders. They urge those who may be eligible for inclusion in the class action to visit their website for further information on the certification and to access intake forms to join the lawsuit.

You can join the class action at the link below.

https://rathandcompany.com/business-class-action/

You can see the class action certification at the link below.

https://rathandcompany.com/wp-content/uploads/2024/10/covid-business-class-action-certification-ruling.pdf