Eunice Machado

The appellants, a restaurant franchisor and its food distributor, appealed a Divisional Court decision certifying a class action brought by former franchisees.

The franchisees alleged the appellants engaged in a price maintenance scheme, civil conspiracy, and breach of contract by charging exorbitant prices for supplies.

The Court of Appeal upheld the certification, finding that the motion judge erred by focusing too heavily on the individual nature of damages and failing to recognize that the breach of the Competition Act, conspiracy, and breach of contract claims constituted valid common issues.

The court also affirmed that aggregate damages provisions under the Class Proceedings Act could potentially be utilized at trial.

The appellant franchisees appealed the dismissal of their motion to certify a class proceeding against the respondent franchisor and distributors.

The appellants alleged price maintenance under the Competition Act, civil conspiracy, and breach of contract regarding mark-ups and sourcing fees for supplies.

The Divisional Court allowed the appeal, finding the motion judge erred in principle by focusing exclusively on the individualized nature of damages and failing to recognize that the breach of the Competition Act, breach of contract, and the fact of loss were common issues.

The Court conditionally certified the class action, concluding it was the preferable procedure to achieve judicial economy, access to justice, and behaviour modification.

The appellant franchisor and respondent franchisee entered into two consecutive franchise agreements.

The franchisee rescinded the second agreement under the Arthur Wishart Act due to the franchisor's failure to provide a disclosure document, and brought an action for rescission and damages.

The franchisor moved to stay the action based on an arbitration clause in the agreements.

The motion judge dismissed the stay motion and granted partial summary judgment for rescission.

On appeal, the Court of Appeal held that the claims fell within the arbitration clause and that the failure to provide a disclosure document did not render the arbitration agreement invalid under the Arbitration Act.

The appeal was allowed, the summary judgment set aside, and the action stayed.

The plaintiff franchisor sued the defendant franchisees for breach of contract.

The motion judge struck large portions of the defendants' statement of defence and stayed portions of their counterclaim, finding the defence pleadings unnecessary for a 'reasonable defence' and the counterclaim duplicative of an intended class action.

The Court of Appeal allowed the appeal, holding that a defendant is entitled to plead any relevant material facts of at least marginal probative value, and that it was premature to stay the counterclaim based on an uncertified class action to which the defendants were not parties.

The appellant appealed an Ontario Municipal Board decision dismissing its claims for compensation for injurious affection, business loss, and disturbance damages following the expropriation of lands for a highway overpass.

The Divisional Court held that the standard of review for findings of fact by the OMB is palpable and overriding error, and correctness for questions of law.

The court found no palpable and overriding error in the OMB's conclusion that the appellant's loss of profits was not attributable to the expropriation, but rather to other factors including the appellant's own strategic marketing decisions.

The appeal was dismissed.