Recent Developments
A certification motion was argued before the Honourable Mr. Justice Strathy in Toronto on May 25 and 26, 2010.
The decision of Justice Strathy is under reserve.
As these matters are difficult and complex, it may be several months before a decision is rendered.
Rendering a decision requires a significant amount of work for the judge who has to undertake careful review of all of the voluminous materials filed with him by both sides.
Once a decision is rendered, a copy will be posted here.
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
Click Here to Read Frequently Asked Questions
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.
DOCUMENTS
Click Here to Read Statement of Claim
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