The plaintiff, a Mr. Sub franchisee, sought to certify a class action against Maple Leaf Foods Inc. and Maple Leaf Consumer Foods Inc. following a listeriosis outbreak in 2008 linked to the defendants' ready-to-eat (RTE) meats, which were exclusively supplied to Mr. Sub franchisees.
The plaintiff alleged negligence, including breach of duty to provide fit products, duty to warn, and negligent misrepresentation, resulting in economic losses such as lost sales, profits, and goodwill.
The defendants challenged the existence of a cause of action, particularly regarding foreseeability, proximity, and policy considerations for economic loss claims.
The court found that the plaintiff had satisfied all five certification criteria under the Class Proceedings Act, 1992, including disclosing a viable cause of action for economic losses based on negligent supply of dangerous goods and negligent misrepresentation.
The court rejected the defendants' arguments that the claim was essentially for breach of continuous supply or that policy concerns regarding indeterminate liability should negate a duty of care, noting the close relationship between the parties and the public danger posed by the contaminated product.
The motion to certify the class action was granted.