Transactions & Cases Detail



Transaction/Case Details

Superior Court decision upheld re approval of settlement of franchisee class action against A&P

DATE CLOSED

October 4, 2004

BUSINESS SECTOR

General Merchandising / Retail

LEAD OFFICE

Toronto

VALUE

41.5 Million CAD


OVERVIEW

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.

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