1. What are these Class Actions about?
  2. Who is affected by the Class Actions?
  3. What settlement has been reached?
  4. How does this affect me?
  5. Who is Class Counsel?
  1. What are these Class Actions about?

    Two actions (Jordan v CIBC Mortgage Inc. and Sherry v CIBC Mortgage Inc., together the “Class Actions”) were brought against the defendant CIBC Mortgages Inc. (“CIBC”) in connection with the calculation of certain prepayment charges on mortgages across Canada, excluding Quebec. The Class Actions apply to CIBC mortgages as well as mortgages through related entities such as Firstline Mortgages and President’s Choice Financial.

    

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  2. Who is affected by the Class Actions?

    Persons residing in Canada, except persons residing in the provinces of British Columbia and Quebec, who: (i) were or are mortgagors under mortgages issued by CIBC as mortgagee from 2005 onward on residential properties located in Canada; (ii) prepaid all or part of those mortgages; and (iii) in so doing paid a prepayment charge based on an Interest Rate Differential (“IRD”).  An Interest Rate Differential compares the prevailing interest rates at the time of borrowing and the time of prepayment;

    (this group of individuals is known as the “Ontario Class”)

    -and-

    Persons resident in British Columbia who (i) were or are mortgagors under mortgages issued by the defendant as mortgagee, (ii) prepaid part or all of the principal amounts secured by those mortgages from 2005 onwards; and (iii) paid a prepayment charge;

    (this group of individuals is known as the “British Columbia Class”)

    The Ontario Class and the British Columbia Class are defined collectively as the “Class Members.”

    *Excluded Persons are the Defendant CIBC Mortgages Inc. (“CIBC”) and its subsidiaries, affiliates, officers, directors, senior employees, legal representatives, heirs, predecessors, successors, and assigns.

    

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  3. What settlement has been reached?

    CIBC has agreed to pay the total amount of CAD$7.5 million in settlement of the Class Actions (the “Settlement”). The Settlement is a compromise of disputed claims and is not an admission of liability or wrongdoing by CIBC. The Settlement is subject to approval of the Ontario Court and the BC Court, and Class Members have a right to object to the Settlement. If the Settlement is approved by the courts, it will be paid into an interest-bearing account.

    After deduction of Class Counsel Fees and Administration Expenses, the balance of the Settlement Funds (the “Net Settlement Amount”) will be distributed to Class Members in accordance with the Distribution Protocol.

    Each Class Member who files a valid, eligible claim will receive a portion of the Net Settlement Amount calculated in accordance with the Distribution Protocol. The Distribution Protocol provides for a payment estimated at CAD$224.00 to each eligible claimant, in accordance with the following Chart that was developed with the assistance of an expert hired by Class Counsel:  

    Each Class Member’s entitlement to compensation will depend on when the Class Members borrowed money and prepaid their mortgage loan.  This is because changes in interest rates over time mean that some Class Members did not have to pay the charges that are at issue in these class actions.

    •            If the Claimant’s date of loan origination or renewal intersects with the date of prepayment in a ‘no’ square, the Claimant will not be eligible to share in the Net Settlement Amount.

    •            If the Claimant’s date of loan origination or renewal intersects with the date of prepayment in a ‘yes’ square, the Claimant will be eligible to share in the Net Settlement Amount.

     

    In the event that the total amount claimed exceeds the amount available for claims, each payment will be reduced on a pro rata basis. Once the allocations of all Class Members who have filed eligible claims have been ascertained, the Net Settlement Amount will be distributed.

    In the event that any amounts remain undistributed after the distribution of the Net Settlement Amount (whether as a result of a failure to locate claimants, the failure of any Class Member to make a valid claim, or as a result of any tax refunds or any distributed cheques having become stale-dated or ineligible for redemption), those amounts will be distributed to eligible Class Members in accordance with the Distribution Protocol (if sufficient to warrant a further distribution) or allocated cy-près to the Law Foundations of Ontario and BC.

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  4. How does this affect me?

    Stay in these Class Actions and Do Nothing

    If the Settlement is approved by the Ontario Court and the BC Court, all Class Members will be bound by its terms unless they have already opted out of the Class Actions. You do not have to do anything to stay in these Class Actions. If any benefits, including any settlement funds, become available for distribution to the Class, you will be notified about how to ask for a share. You will be legally bound by all orders and judgments of the Court, and you will not be able to sue the Defendant about the legal claims in these cases.

    Stay in these Class Actions and Object to the Settlement or Class Counsel Fees

    A joint hearing is scheduled for February 4, 2022, at the Courthouse of the Ontario Superior Court of Justice, 80 Dundas Street, London, Ontario, and at the Courthouse of Supreme Court of British Columbia, 800 Smithe Street, Vancouver, British Columbia. The purpose of these hearings is for the Courts to make a determination of the fairness of the Settlement and to approve the Settlement. All timely filed written submissions from Class Members will be considered at this time. If you wish to comment on or make an objection to the Settlement, you must deliver a written submission to Class Counsel at the address listed below or to the Administrator via email at info@CIBCprepaidmortgagesettlement.com or by mail at:

    CIBC Prepaid Mortgage Settlement

    c/o RicePoint Administration Inc.,

    P.O. Box 4454, Toronto Station A,

    25 The Esplanade, Toronto, ON M5W 4B1

    No later than January 23, 2022. Class Counsel will forward all such submissions to counsel for the Defendant and the Courts.

    The Ontario Court and BC Courts must both approve the Settlement for it to bind the parties. If either Court does not approve the Settlement, the lawsuits will continue and, if you have submitted a claim form or notice of election to opt out, you will receive notification that the Settlement has not been approved.

    Opt Out of these Class Actions

    If you want to keep your right to sue the Defendant CIBC on your own over the claims in these cases, you need to opt out from these Class Actions. If you remove yourself, you cannot get any money or other benefits from this lawsuit and you will not be represented by Class Counsel.

    Any Class Member who does not wish to participate in the Settlement must opt out of the class proceeding by sending a completed Opt-Out Form to RicePoint Administration Inc. via email at info@CIBCprepaidmortgagesettlement.com or by mail at:

    CIBC Prepaid Mortgage Settlement

    c/o RicePoint Administration Inc.,

    P.O. Box 4454, Toronto Station A,

    25 The Esplanade, Toronto, ON M5W 4B1

    Your completed Opt-Out Form must be received by no later than 5:00 pm Eastern Standard Time on January 23, 2022 (the “Opt-Out Deadline”). Those who opt-out will not be bound by the release in favour of the Defendant. The Opt-Out Form is available here. No Class Members will be permitted to opt-out of the Class Proceeding after the Opt-Out Deadline without leave of the court.

    

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  5. Who is Class Counsel?

    The law firms of Siskinds LLP and Branch McMaster LLP are Class Counsel. Inquiries may be directed to:

    Siskinds, LLP
    Barristers & Solicitors

    100 Lombard Street, Suite 302
    Toronto, ON  M5C 1M3

    Alex Dimson
    Jared S. Rosenbaum

    Tel: 416-362-8334
    Fax: 519-672-6065
    Email: donna.mcevoy@siskinds.com

    Website: www.siskinds.com/class-action/cibc-mortgages-prepayment-penalty/

    Branch MacMaster LLP
    Barristers & Solicitors

    777 Hornby Street, Suite 1410
    Vancouver, BC  V6C 1S4

    Luciana Brasil
    Jillian Dean

    Tel: 604-654-2999
    Fax: 604-684-3429
    Email: jdean@branmac.com

    Website: www.branchmacmaster.com/class_actions/cibc-mortgages-prepayment-penalty/

    

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