Transactions & Cases Detail
Superior Court decision upheld re approval of settlement of franchisee class action against A&P
October 4, 2004
General Merchandising / Retail
41.5 Million CAD
On December 9, 2002, Justice Warren Winkler of the Superior Court of Justice certified an action commenced by Food Basics franchisees against the Great Atlantic & Pacific Tea Company of Canada Ltd. (A&P).
The law suit alleged that A&P withheld rebates from its franchisees contrary to its franchise agreement. Justice Winkler also granted an injunction against A&P to restrain misconduct intended to defeat the certification process.
On May 11, 2004, the Ontario Court of Appeal denied A&P leave to appeal from the Divisional Court's March 8, 2004 reasons upholding the certification order. A trial date of October 12, 2004 was set.
On October 4, 2004, Regional Senior Justice Winkler approved a settlement of the action pursuant to which A&P paid compensation and acquired the franchises of the plaintiffs for the sum of C$41.5 million.
McCarthy Tétrault LLP represented the defendant, A&P, with a team led by Thomas Heintzman.