Difederico v. Amazon.com, Inc.

Difederico v. Amazon.com, Inc.

The Court approved the LFA because, on balance, it is in the interests of justice: third-party funding was necessary for meaningful access, the agreement was not champertous, it is fair and reasonable to current and prospective class members (particularly after amendment guaranteeing a US$15 million priority to the class in low-outcome scenarios), it protects defendants' legitimate interests and privilege/confidentiality, and it preserves counsel independence; confidentiality of certain commercial terms was granted except the fee caps and multiplier which must remain public.

Citation
2021 FC 311
Parties
Representative Plaintiff: Stephanie Difederico; Representative Plaintiff: Jameson Edmund Casey; Defendants: Amazon.com, Inc.; Amazon.com.ca, Inc.; Amazon.com Services LLC; Amazon Services International, Inc.; Amazon Services Contracts, Inc.; Funder: Therium Litigation Finance Atlas AP IC; Amicus Curiae: Tom Curry; Amicus Curiae: Jonathan Chen
Court
Federal Court
Jurisdiction
Canada
Judgment Date
15 April 2021
Procedural Posture
Class Action Competition Act Price Fixing (s.45 and S.46) / Motion to Approve Litigation Funding Agreement and Confidentiality (pre Certification)
Outcome
Approved
Legal Topics
Litigation Funding Agreement Approval, Champerty, Access to Justice, Confidentiality of Commercial Terms, Most Favoured Nation Clauses, Fair Pricing Clauses, Damages Assessment
Source Language
English
Competition/antitrust Class Actions Civil Procedure Commercial Law Litigation Funding Litigation Funding Agreement Approval Champerty Access to Justice +4 more

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Parties

Stephanie Difederico

Representative Plaintiff

Jameson Edmund Casey

Representative Plaintiff

Amazon.com, Inc.; Amazon.com.ca, Inc.; Amazon.com Services LLC; Amazon Services International, Inc.; Amazon Services Contracts, Inc.

Defendants

Therium Litigation Finance Atlas AP IC

Funder

Tom Curry

Amicus Curiae

Jonathan Chen

Amicus Curiae

Procedural Posture

Class Action Competition Act Price Fixing (s.45 and S.46) / Motion to Approve Litigation Funding Agreement and Confidentiality (pre Certification)

Legal Issues

  1. 1 Whether to approve the litigation funding agreement (LFA)
  2. 2 Whether the LFA is champertous/maintenance
  3. 3 Whether the LFA is fair and reasonable to current and prospective class members

Ratio Decidendi

The Court approved the LFA because, on balance, it is in the interests of justice: third-party funding was necessary for meaningful access, the agreement was not champertous, it is fair and reasonable to current and prospective class members (particularly after amendment guaranteeing a US$15 million priority to the class in low-outcome scenarios), it protects defendants' legitimate interests and privilege/confidentiality, and it preserves counsel independence; confidentiality of certain commercial terms was granted except the fee caps and multiplier which must remain public.

Court Disposition

Approved

Orders

  • The litigation funding agreement dated December 29, 2020, between Therium Litigation Finance Atlas AP IC, the representative plaintiffs and listed counsel, as amended March 15, 2021, is approved.
  • Plaintiffs' request to redact certain commercial terms of the LFA from the public file is granted, except the description of the funding fee caps (the greater of five times committed funds and 10% of claim proceeds, subject to a cap of US$100,000,000) which shall not be redacted.