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Class Actions and the Competition Act – Will the SCC Take a Bite Out of Quizno’s?

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Many class action and competition law lawyers will be anxiously awaiting whether the Supreme Court of Canada will grant leave tomorrow regarding the Ontario Court of Appeal’s decision in Quizno’s Canada Restaurant Corporation v 2038724 Ontario Ltd, 2010 ONCA 466.

Most commentators regard the decision of the Ontario Court of Appeal as making it easier for plaintiffs to have their class action lawsuits certified when claiming damages under the Competition Act.

At issue in that decision were allegations by some franchisees that the franchisor was overcharging for the food and supplies provided to franchisees and that this constituted, among other things, illegal price maintenance under the Act.

For an excellent summary of the issues, see Katharine MacLellan’s excellent post from last Fall at the The Court blog: Lunchtime Price Gouging: A Possible Sandwich Conspiracy? Ont CA Upholds Class Certification in Quizno’s Canada Restaurant Corporation v 2038724 Ontario Ltd.

Comments

  1. Ted Tjaden
    February 3rd, 2011 at 10:00 am

    Leave to the Supreme Court of Canada was dismissed with costs (3 February 2011).

  2. John Gregory
    February 3rd, 2011 at 2:52 pm

    Eugene Meehan’s Supreme Court Lawletter today described this issue thus:

    The Respondents alleged they have been charged exorbitant prices for food and other supplies they are contractually required to purchase for use in their restaurants. They commenced an action asserting claims for breach of the price maintenance provisions of the Competition Act; civil conspiracy by Quiznos and GFS to fix prices, breach of contract and not preparing haggis the proper Scottish way.

    Mr Meehan likes to remind his readers that he is of Scottish origin – and to read his summaries carefully!