In May 2009, approximately 200 General Motors dealers were eliminated in connection with the federal auto bailout. This class action lawsuit seeks $750 million in damages on behalf of those dealers.

The lawsuit claims that General Motors of Canada Limited, a subsidiary of General Motors Company, breached franchise laws in connection with the agreements which GM obtained from the dealers it selected for elimination as part of the federal bailout. The lawsuit claims that many of the dealers have a right under provincial franchise laws to rescind or cancel the agreements and that all dealers have a right to sue for breach of the duty of fair dealing under Ontario’s franchise statute. The bailout was the largest government subsidy given to a corporation in Canadian history.

Also named in the suit is Cassels Brock & Blackwell LLP (“CBB”), a Canadian law firm which had been retained in advance to represent Canadian dealers in a GM restructuring or bankruptcy. The claim alleges that CBB failed to disclose to the dealers that it was simultaneously acting for the Canadian Government in the GM auto bailout and that it breached its duties to the dealers.

The representative plaintiff, Trillium Motor World Ltd. of Toronto Ontario, brought the action under Ontario’s Class Proceedings Act, 1992. The members of the proposed class include automotive dealerships in every province of Canada.

Important Dates

• December 15-17, 2010: Motion for certification

Documents

• Statement of claim (Jan 12, 2010)

Media

• BNN: GM’s Dealership About Face (Mar 5, 2010) (video)
• BNN: GM Dealers Launch Class Action Lawsuit (Jan 22, 2010) (video)

More information

• Class Action Update May 18, 2010
• Mise à jour 18 Mai, 2010 (version française)
• Class Action Update Feb 11, 2010
• Mise à jour 11 Fév, 2010 (version française)
• Class Action FAQ