Chris Rootham

The appellants appealed an order declaring that the respondent Merali was not a 'franchisor's associate' under the Arthur Wishart Act.

The Court of Appeal allowed the appeal, finding that the application judge's factual finding that Merali controlled the franchisor rendered him a franchisor's associate.

Consequently, Merali was declared jointly and severally liable with the other respondents for payments owed under s. 6(6) of the Act.

The appellant union fined the respondents for crossing a picket line during a legal strike.

The fine was equal to their gross pay for the days worked.

When the respondents refused to pay, the union sought to enforce the fines in Small Claims Court.

The respondents brought an application in the Superior Court, where the judge found the fine provision in the union constitution to be an unenforceable penalty clause and unconscionable.

The Court of Appeal dismissed the union's appeal, upholding the finding that the fine was unconscionable due to inequality of bargaining power and the substantial unfairness of a fine equivalent to gross pay.