Rooney v. ArcelorMittal S.A.
Litigation funding for this class action was offered in exchange for a rate of return that was more favourable to the plaintiffs than the rate applicable to the Class Proceedings Fund. The defendants did not oppose the arrangement. In 2013, the Court approved the funding agreement, based mainly on precedent examples in decisions rendered by Justices Strathy and Perell. The Court ordered the foreign funder to pay security for costs, by means of an irrevocable letter of credit or otherwise.
The defendants were not satisfied with the letter of credit, principally because it was subject to annual renewals and contained an ultimate expiry date. In 2018, they requested the action be stayed until other security was posted. The Court dismissed the defendants’ motion, holding that the letter of credit was sufficient, because the Court would receive advance notice of any non-renewal or expiry and it would immediately call the letter of credit at that time.