IKO Roofing Shingles

Active Action

What is this class action about?

The representative plaintiff, on behalf of himself and the Class, is claiming damages from the defendants (IKO Industries Ltd., Canroof Corporation Inc., and I.G. Machine & Fibers Ltd.) for the negligent design and manufacture of IKO Organic Shingles. Specifically, the representative plaintiff alleges that IKO Organic Shingles were negligently designed and manufactured in a manner that, under normal conditions and usage, would result in premature failure.

Additionally, with respect to persons in British Columbia, Saskatchewan, Manitoba, Quebec and/or New Brunswick, the representative plaintiff also asserts claims for breach of the consumer protection legislation. Specifically, the representative plaintiff asserts that the Defendants breached the consumer protection legislation by representing that IKO Organic Shingles complied with industry standards, notwithstanding that IKO Organic Shingles did not comply with industry standards and that the Defendants did not conduct the necessary testing to determine whether IKO Organic Shingles did, in fact, comply with industry standards.

The representative plaintiff seeks damages, on behalf of himself and the Class, for, among other things, the costs of removing and replacing defective IKO Organic Shingles, including associated labour costs. The court has not taken any position as to the likelihood of recovery on the part of the representative plaintiff or the Class, or as to the truth or merits of the claims or defences asserted by either side. The allegations made by the representative plaintiff have not been proven in court.

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In July 2012, the action was certified as a class proceeding by the Ontario Superior Court of Justice.  In June 2013, the Ontario Divisional Court denied leave to appeal the certification order.  This means that the claims of all class members will be determined in a single proceeding. The case was certified on all persons that own or have owned, lease or have leased buildings in Canada that contain or have ever contained IKO organic shingles.  The class includes persons who have subrogated claims.

On September 16, 2015, a motion was heard by the Ontario Superior Court of Justice to amend the certification order to assert common issues specific to class members who signed a release as part of IKO’s limited warranty program and for a determination of whether these class members can participate in the class action.  The court declined to certify these issues as common issues, meaning that the issues will not be determined as part of the common issues trial.  Instead, class members who wish to challenge the scope and validity of the release must do so after the common issues trial as part of the determination of the individual issues.

The litigation is now in the discovery stage.  The parties are in the process of conducting documentary discovery, which involves the parties exchanging their relevant documents.  The defendants have produced a large volume of documents and will be producing additional documents.  After documentary discovery is complete, the next step will be oral examinations for discovery (this involves asking each other’s representatives questions about the matters at issue in the litigation).  Once discoveries are complete (assuming that no settlement has been achieved with IKO), there will be a trial of the common issues. At this stage, it is not possible to determine how long the litigation will take.