Recent Developments
This action was certified as a class proceeding by the Honourable Mr. Justice Strathy pursuant to Reasons for Decision issued August 23, 2010.
Justice Strathy ordered appointment of an Alberta sub-class representative plaintiff. An Alberta sub-class representative plaintiff has been appointed in the Statement of Claim Amended pursuant to Court Order dated December 22, 2010.
The action is now moving forward as a class proceeding.
Examinations for discovery of representatives of the defendants have been conducted. Examinations for discovery of the representative plaintiffs are being completed presently.
Motions might have to be brought before the court to deal with issues arising out of the examinations for discovery and it is hoped that any such motions can be brought by summer, 2011 and the matter then set down for trial.
Further updates will be posted shortly.
Documents
Click Here to Read the Order of Strathy, J., dated December 22, 2010
Click Here to Read the Amended Statement of Claim
Click Here to Read the Order of Strathy, J., re certification
Click Here to Read the Order of Strathy, J., dated October 15, 2010
Click Here to Read the Endorsement of Mr. Justice Strathy dated September 20, 2010
Click Here to Read the Reasons for Decision of Mr. Justice Strathy dated August 23, 2010
Opt-Outs
The deadline for opting-out of this class proceeding was January 15, 2011.
Only 4 class members opted-out. The Opt-Out Administrator has reported to the court on the Opt-out process as required.
Click Here to Read Notice of Certification
Click Here to Read Opt-Out Form
Click Here to Read Frequently Asked Questions
Certification Materials
Click Here to Read Plaintiff's Motion Record Re Certification
Click Here to Read the Responding Motion Record of Sears Re Certification
Click Here to Read the Responding Motion Record of HCBG Re Certification
Overview of Claim
A statement of claim was issued in the Ontario Superior Court of Justice in Toronto on May 15, 2009 proposing a class action brought by licensees operating Sears Floor Covering Centers against Sears Canada Inc., Sears, Roebuck and Co. and Home Coverings Buying Group Inc. The claim alleges receipt of undisclosed rebates/secret commissions by Sears to the determent of licensees.
The claim seeks damages of $15 million, plus punitive and exemplary damages.
The action has been commenced under the Class Proceedings Act, 1992, S.O. 1992, c.6, as amended, by McKee’s Carpet Zone.
The statement of claim alleges that Sears entered into license agreements with various parties and, contrary to the terms of the license agreements and duties and obligations owed in law, Sears received undisclosed rebates/secret commissions from approved suppliers arising from the sale of flooring products. The statement of claim alleges that these undisclosed rebates amount to secret commissions, contrary to section 426(1) of the Criminal Code of Canada.
The plaintiff, McKee’s Carpet Zone, entered into a license agreement with Sears in August, 1998. The license agreement provided McKee with the exclusive right to operate a Sears Floor Covering business in Newmarket, Ontario. The license agreement required that McKee’s purchase products only from suppliers approved by Sears. The intended effect of this provision is that McKee’s would be able to purchase products at a discounted price in comparison to the price it would pay if it were not an agent for Sears. In or about, June, 2007 McKee’s received information that caused it to suspect that undisclosed rebates were being paid to Sears’ agent, Home Coverings Buying Group Inc. and/ or Sears, by approved suppliers.
The statement of claim contains allegations which have yet to be proven in Court.
If you have not already contacted us, we would appreciate hearing from you as it might assist us in pursuing this claim. You may contact us via e-mail, telephone, mail, courier, fax, etc.
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