Twelve years after the listeria outbreak at the heart of the case, the Supreme Court of Canada released a 5-4 decision in 1688782 Ontario Inc. v. Maple Leaf Foods Inc. et al., 2020 SCC 35, on November 6, 2020, ruling in favour of the defendant Maple Leaf Foods Inc. This is a consequential decision on economic loss in tort that confirms that there is no general right in tort protecting against the negligent or intentional infliction of pure economic loss in Canadian law, and that the circumstances in which pure economic loss may be recovered remain limited.
The recent decision in 2483038 Ontario Inc. v. 2082100 Ontario Inc., confirms a narrow point of franchise law, namely that an unsigned certificate in a Franchise Disclosure Document continues to constitute a “fatal flaw”, despite the Ontario Court of Appeal’s decision in Raibex Canada Ltd. v. ASWR Franchising Corp. The decision also clarifies the liability of “franchisor’s associates”.
This article is part of a series of articles that document some key considerations about franchising, including some of the pitfalls and the opportunities.