The defendant franchisor appealed an order certifying a class proceeding brought by franchisees regarding the distribution of rebates and allowances under a standard form franchise agreement.
The franchisor argued that the representative plaintiffs could not fairly and adequately represent the class and had a conflict of interest because they were not indebted to the franchisor, unlike other franchisees.
The Divisional Court dismissed the appeal, finding no palpable and overriding error in the motion judge's conclusion that the representative plaintiffs could fairly and adequately represent the class and that their lack of indebtedness did not create a conflict of interest on the common issues.
