The plaintiff, a commercial corn grower, brought a proposed class action against the defendants, manufacturers of genetically modified corn seeds (Agrisure), alleging negligence and breach of the Competition Act.
The plaintiff claimed that North American corn prices fell due to China's rejection of corn shipments containing unapproved Agrisure, causing economic loss to non-Agrisure farmers.
The defendants moved to strike the claim under Rule 21, arguing no duty of care existed for pure economic loss.
The court granted the motion, finding that while the claim was framed in misrepresentation, the plaintiff's reliance on the defendants' alleged undertaking not to introduce Agrisure without global approvals was unreasonable, as commingling was inevitable and preventing it would require withholding the product from the domestic market, which had regulatory approval.
The court also noted the risk of indeterminate liability and the illogical elevation of foreign approvals over domestic ones.