Howard B. Borlack

The Hostess Frito Lay Company and Super Pufft Snacks Corp. appealed a decision of the Ontario Farm Products Marketing Commission refusing to bring into force settlement agreements negotiated between the processors and the Ontario Potato Board.

The Commission had previously declined to re-open arbitrated awards, citing concerns about the integrity of the arbitration process amidst ongoing court challenges.

However, the Tribunal found that the multi-year settlement agreements, which were supported by growers and other industry stakeholders, would provide a mutually agreeable and stable marketing environment.

The Tribunal granted the appeals and ordered the Commission to bring the settlement agreements into force.

The appellants appealed a summary judgment decision finding them bound by a December 17, 1999 agreement.

The appellants argued the agreement was based on a misrepresentation regarding the accounting approach used for a pay-out calculation.

The Court of Appeal dismissed the appeal, finding no error in the motion judge's conclusion that differing views on accounting approaches did not constitute a misrepresentation, especially since the view of the appellant's Chief Financial Officer was known to the appellant.