Geoffrey J. Hunnisett

The appellants were awarded costs of the motion before the Superior Court on consent.

The respondents were ordered to pay $30,000 inclusive of disbursements and taxes, in addition to the costs awarded to the appellants in the appeal.

The appellants, General Motors dealers in the Greater Toronto Area, sued GMCL and its US parent company, GM US, alleging breaches of the duty of good faith and fair dealing under the Arthur Wishart Act and at common law.

The motion judge struck the claim against GM US under Rule 21, finding it was neither a party to the franchise agreement nor a franchisor's associate.

The Court of Appeal allowed the appeal, holding that the determination of whether GM US was a franchisor's associate or owed a duty of fair dealing required a full factual record and should not be dismissed at the pleadings stage.