The class action seeks damages in the amount of $100 million on behalf of all Canadian Pet Valu franchisees against the franchisor of the Pet Valu chain. The statement of claim alleges that the franchisor breached its obligations under the franchise agreement and the Arthur Wishart (Franchise Disclosure), 2000, S.O. 2000, c.3. The court has certified the case to proceed as a class action on the issue of whether Pet Valu breached its contractual duty to the Class Members at any time during the Class Period by failing to share volume-based rebates, allowances and discounts given by suppliers and manufacturers to Pet Valu or its affiliates, and other related claims. Links to the statement of claim and decision on certification are below.

The proposed class consists of all persons carrying on business as a franchisee under a franchise agreement with Pet Valu at any time on or after December 31, 2003.

The action was launched on December 9, 2009.

On January 14, 2011, the Ontario Superior Court of Justice released a decision certifying the class action. The judge overseeing the class action released further reasons for decision on March 28, 2011 setting out the common issues for trial. On June 21, 2011, the Court released a further decision where it dismissed a motion to declare all future “releases” entered into by franchisees to be enforceable.

Notice to class

• Notice of certification (July 15, 2011)

Pleadings

• Statement of Claim (Dec 9, 2009)

Court Decisions and Orders

• Certification order of the Ontario Superior Court of Justice (June 30, 2011)
• Reasons of Ontario Superior Court of Justice regarding enforceability of releases (June 21, 2011)
• Endorsement (common issues) of Ontario Superior Court of Justice (March 28, 2011)
• Reasons of Ontario Superior Court of Justice for judgment on certification (January 14, 2011)

More Information

• Class Action Update May 11, 2010
• Class Action FAQ

• October 28, 2011: The Divisional Court refused to grant Pet Valu leave to appeal the certification decision. As a result, Pet Valu will not be able to appeal the certification decision to a higher court. The case is currently proceeding towards trial.
• June 21, 2011: The Court released a further decision where it dismissed a motion to declare all future “releases” entered into by franchisees to be enforceable.
• January 14, 2011: The Ontario Superior Court of Justice released a decision certifying the class action. The judge overseeing the class action released further reasons for decision on March 28, 2011 setting out the common issues for trial.

Allan Dick
t: 416.977.5333 x 309
f: 416.977.0717
e: adjdick@sotosllp.com

David Sterns
t: 416.977.5333 x 313
f: 416.977.0717
e: dsterns@sotosllp.com

Andy Seretis
t: 416.977.5333 x 306
f: 416.977.0717
e: aseretis@sotosllp.com