Marcotte v. Banque de Montreal

This decision relates to the decade-long class action litigation against financial institutions, which culminated in a win for the plaintiffs at the Supreme Court of Canada (2014 SCC 55). The litigation was subsequently settled for $56 million. In the present decision, the Superior Court of Quebec was asked to approve the settlement as it concerned the payment of $13.5 million in lawyers’ fees and $7.3 million in litigation financing costs. The court approved both, holding (paras. 43-44; unofficial translation):

“In the face of legal costs, an industry has emerged, which is not yet widespread in Quebec, but which is gaining momentum in Canada and is more developed in Great Britain. A client who could not otherwise enforce his or her rights can obtain funding, in return for a commitment to provide a high financial return to the funder. In exchange, the latter agrees to risk its funds, and is paid only if the plaintiff wins his or her case. … [T]he financing of third party litigation is a path to justice.”