Can an Ontario Class Action Settlement Notice Be Approved by Consent?

What is a class action settlement notice in Ontario?

A settlement notice is a formal communication sent to class members informing them that a proposed settlement has been reached and that a court hearing will take place to decide whether to approve it. In Ontario, a court must approve the notice before it goes out — both the content of the notice and the plan for delivering it must meet legal requirements under the Class Proceedings Act, 1992.

In McCallum v. Aviva Insurance Co., 2026 ONSC 4606 (CanLII), the Ontario Superior Court of Justice approved exactly this kind of pre-approval notice on consent of the defendant. The motion is a useful illustration of how this procedural step works in practice.

Why does the court need to approve the notice before sending it?

The court approves the notice to protect class members who may not have been actively following the litigation. Class actions can take years to resolve, and many class members have little or no involvement in the day-to-day proceedings. The notice approval process ensures that when a settlement is proposed, every class member receives clear, accurate information about what is being offered and what their options are — before anyone is bound.

The court looks at two things: whether the notice itself is informative enough, and whether the delivery plan is likely to actually reach class members. A notice that is technically sent but practically invisible to most recipients would not satisfy the court.

What makes a notice plan adequate in a class action?

An adequate notice plan is one that is reasonably likely to reach the people it is supposed to reach. Courts look favourably on plans that build on what already worked during the certification stage of the case. If direct notice by email or mail successfully reached class members when the class was first certified, using the same approach for the settlement notice makes practical sense.

In this case, the defendant held contact information for class members and agreed to provide it to class counsel. Class counsel would then be responsible for sending the notice directly. This kind of direct notice — where identifiable individuals receive personal communication — is generally considered more reliable than publication-based notice programs.

What happens after the settlement notice is approved?

Once the notice plan is approved, class counsel sends the notice to class members. The notice typically includes a description of the proposed settlement, information about the settlement hearing date, and a deadline by which class members must file any objections if they disagree with the proposed terms.

After the notice period closes, the court holds a settlement approval hearing. At that hearing, the judge considers whether the settlement is fair, reasonable, and in the best interests of the class as a whole — taking into account any objections that were filed. Approval of the notice plan simply starts the clock on that process.

Can class members object to a proposed settlement?

Yes. Class members have the right to file written objections before the settlement approval hearing. The notice will tell you the deadline and the process for doing so. You do not need to hire a lawyer to file an objection, although legal advice can help you understand whether your concerns are ones the court is likely to consider.

If you receive a class action settlement notice and you have concerns about the terms being proposed, acting before the objection deadline is critical. Once the court approves a settlement, class members who did not opt out are generally bound by its terms.

What was the file number issue in this case?

The court also addressed a technical administrative matter: the case had been managed on the Commercial List and carried a “CL” file number, but class proceedings are typically designated with a “CP” file number. The court treated this as a formality and directed that a revised draft order be prepared so that filings would not be delayed by the administrative discrepancy. This kind of procedural housekeeping is common in complex litigation and does not affect the substantive rights of class members.

Practical takeaways for class members

• Watch for your notice. If you are part of a certified class, you may receive a settlement notice by email or mail. Read it carefully — it contains deadlines that matter.
• You have the right to object. If you disagree with the proposed settlement, you can file a written objection before the stated deadline. Missing the deadline can mean losing your chance to be heard.
• Approval of the notice is not approval of the settlement. The court has not yet decided whether the deal is fair. That decision comes later.
• Contact information matters. If the defendant holds your contact details, they may be required to share them with class counsel for notice purposes. Make sure your information is current if you want to receive direct notice.
• Get legal advice if you are unsure. If you receive a class action settlement notice and do not understand your options, speaking with a litigation lawyer before the objection deadline can help you make an informed decision.

Our Ontario litigation lawyers regularly advise clients on class action proceedings, including their rights as class members during the settlement approval process. If you have received a settlement notice and are not sure what to do next, we can help you understand your options.

If you are located in the Hamilton or Burlington area and have questions about a class action or other civil litigation matter, our team serves clients across the region, including through our Burlington litigation practice and Hamilton litigation practice.

UL Lawyers offers a free initial consultation from our Burlington office and serves clients across Ontario. If you have questions about a class action settlement or any other civil litigation matter, reach out to our civil litigation team to get started.

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This article is automated commentary on a public court decision and is for general information only — not legal advice. Decisions rely on facts unique to each case. If you are affected by a similar issue, contact a lawyer for advice specific to your situation.