An Ontario court has denied leave to appeal a decision which found that plaintiffs in a proposed class action suit against Manulife Financial Corp. (TSX:MFC), and several former executives and directors, cannot force two Manulife employees to provide testimony as they seek to certify the suit as a class action.
The proposed investor class action, which alleges inadequacies in the insurer’s risk management policies and practices for its segregated funds and variable annuities, is due to be considered for certification in March. It has not yet been certified as a class action, and the case has not yet been heard.
According to the Ontario Divisional Court ruling released last week, after the defendants in the case advised that they would not be filing any affidavits as part of the leave motion, the plaintiffs then summoned two Manulife employees to provide evidence in the case. The decision notes that the defendants then brought a motion to quash the summonses, and the plaintiffs brought a cross motion to compel the defendants to file affidavits. The court granted the motion to quash the summonses and dismissed the cross motion.
The plaintiffs sought leave to appeal, but the court has rejected that bid, finding, “The jurisprudence, particularly as it has developed recently overwhelmingly supports the motion judge’s interpretation… that it does not require the defendants to deliver affidavits or to be subjected to cross examination when they do not intend to lead evidence in response to the leave motion.”