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Author Archives / Sarit Batner

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Ontario Court Certifies Franchise Encroachment Claim as Class Action

Posted in Franchising, Litigation

The Ontario Superior Court of Justice recently certified a class action by dealers of a home furnishings company in 1291079 Ontario Limited v. Sears Canada Inc.

The dealers are outlet stores for a national department store (the putative franchisor) and allege that they are “franchisees” within the meaning of Ontario’s Arthur Wishart Act (Franchise Disclosure), 2000, S.O. 2000, c. 3 (the Act).… Continue Reading

Ontario Court Finds that Material Omission in Franchise Disclosure Document Provides Only 60-Day Rescission Right

Posted in Franchising, Legislation

The following article by Sarit Batner, Helen Fotinos, Brooke MacKenzie and Adam Ship may be of interest to readers of this blog: Ontario Court Finds that Material Omission in Franchise Disclosure Document Provides Only 60-Day Rescission Right.

In a significant recent decision, the Ontario Superior Court of Justice granted partial summary judgment in Caffé Demetre v. 2249027 Ontario Inc. the first franchise rescission claim to be decided since the new summary judgment test was set down by the Supreme Court of Canada in Hryniak v. Mauldin. The case is one of the first in which an Ontario court … Continue Reading

Franchise Lessons to Be Learned From the Shoppers Drug Mart Certification Decision

Posted in Corporate Matters, Franchising

The Shoppers Drug Mart franchisees recently took another step forward in their class action lawsuit. Building on his earlier decision discussed here, Justice Perell for the Ontario Superior Court of Justice (ONSC) certified a number of elements of the plaintiffs’ action as a class proceeding. In this article, we have focussed on the three aspects of the decision that, in our view, are most significant to franchise and distribution systems.… Continue Reading

Ontario Court of Appeal Considers Scope of Franchisor’s Duty to Disclose Outside Mandatory Disclosure Context

Posted in Corporate Matters, Franchising, Real Estate

In an important new decision for franchisors, 3574423 Canada Inc. v. Baton Rouge Restaurants Inc. (Baton Rouge), the Ontario Court of Appeal (ONCA) recently considered the scope of informational disclosure a franchisor is required to provide to one of its franchisees outside the context of statutory disclosure obligations. In Baton Rouge, the ONCA considered the scope of a franchisor’s duty of good faith when supplying an existing franchisee with information concerning a new location.

This appeal was from a 2012 trial decision of Justice Brown, which we previously discussed here. The trial decision clarified a number of issues … Continue Reading