On January 20, 2021 the Court of Appeal for Ontario released its decision in Kaynes v BP, effectively ending a decade-long securities class action. This action arose from the Deepwater Horizon oil rig explosion in 2010, with the plaintiff claiming that Canadian BP shareholders suffered losses due to alleged misrepresentations in BP’s public disclosures. The action went to the Court of Appeal four times, and had two applications for leave to the Supreme Court.
The action generated a number of frequently-cited decisions in the areas of jurisdiction/forum non conveniens, discoverability for the purposes of the Limitations Act, 2002 and the Securities Act, and the statutory cause of action for secondary market misrepresentation under the Securities Act. In addition, the action saw related proceedings by Canadian shareholders in Ontario, Alberta and the Southern District of Texas.
In its final chapter, the plaintiff tried to resurrect its claim and class size by alleging fraud for the first time, allegations that Justice Perell and the Court of Appeal found to be statute-barred.
This is a precedent setting case for securities class actions in Canada on (1) issues of jurisdiction and forum for Canadian securities class actions, (2) the applicable limitation period – this case established that it is a “bright line” statutory deadline with no discoverability factor, and (3) on amending class action claims past limitation periods.
BP p.l.c. operates as an integrated oil and gas company worldwide. BP p.l.c. was founded in 1889 and is headquartered in London, the United Kingdom.
Osler advised Canadian BP with a team including Laura Fric, Kevin O’Brien and Karin Sachar, Lauren Harper and Carla Breadon (Litigation).