Sears Hometown Stores
A statement of claim was issued on October 21 2015 alleging that Sears Canada, its majority shareholder and directors oppressed the class members when it paid out a $500 million dollar dividend to its shareholders in December 2013 after the commencement of the dealer class action in July 2013. A copy of the statement of claim can be viewed here. Details regarding the motion to certify this new class action will follow.
This class action is on behalf of approximately 260 Sears “Hometown” stores operating in Canada on or after January 1, 2011.
The claim alleges that the Sears defendants breached their contractual duties and duties under provincial franchise laws by forcing the Hometown store dealer-owners to work for subsistence-level compensation and by depriving them of any realistic opportunity to share in the profits generated by the Hometown store system.
The claim also alleges that Sears has encroached on the dealers’ protected market areas through direct-channel sales.
The dealers claim $100 million in damages and injunctive relief.
On Thursday February 26, 2015 Justice Gray dismissed the action on a without costs basis as against Sears Roebuck and Co. The order in respect of same can be viewed here
The action was certified as a class action on September 8, 2014.
More information from the plaintiffs can be found at Share-The-Pie.blogspot.com.
June 22, 2017: Sears has filed for creditor protection under the Companies’ Creditors Arrangement Act (the “CCAA”). This filing stays (puts on hold) the class action. We are currently reviewing and assessing the class’ rights in the CCAA filing.
October 21, 2015: A statement of claim was issued alleging that Sears oppressed the class members when it paid out a $500 million dollar dividend to its shareholders in December 2013. A copy of the statement of claim can be viewed here.
February 26, 2015: The statement of claim was amended. A copy of the amended statement of claim can be viewed here.
September 8, 2014: The action was certified as a class action.
June 20, 2014: A motion to certify the action as a class action was heard on June 11, 2014 in Milton. The decision is currently under reserve. We will post an update as soon as the decision is released.
- Statement of Claim (July 5, 2013)
- Reasons for Judgment (September 8, 2014)
- Order for Re Certification (September 8, 2014)
- Order of Dismissal (February 26, 2015)
- Statement of Claim re Oppression (October 21, 2015)
July 9, 2013
CTV News profiles Sears class action
July 5, 2013
Canadian “Sears Hometown” store dealers launch $100 million class action against Sears Canada and Sears, Roebuck
July 5, 2013
Les concessionnaires des magasins canadiens « Sears Hometown » déposent un recours collectif de 100 millions de dollars contre Sears Canada et Sears, Roebuck