Dr. Andy Baziliauskas

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.