Derek Ronde was interviewed for the article “Pet Valu Wins Costs for Failed Class Action,” published by Canadian Lawyer.
The article looks at the class action Pet Valu Canada Inc. v. Rodger and the latest ruling from the Ontario Court of Justice that held that a one-time Pet Valu franchisee is liable for the franchisor’s costs in class action litigation he brought against Pet Valu Canada Inc.
Derek (who represented Pet Valu along with Kate Byers) says that there were two unique factors in this scenario. “Usually in class actions, the potential cost consequences to representative plaintiffs are limited by indemnification by class counsel…. Unfortunately, in this cases, that was not done. The other unique factor in this case was that there was a contract between the parties. That’s not often the case between plaintiffs and defendants in a class action.”
Derek goes on to say that a key takeaway from this decision is that “it’s reassuring to franchisors that Ontario courts are willing to enforce these indemnification provisions and guarantees.” As well, he says, “it’s reassuring that there’s recognition that defendants in class actions are entitled to be compensated if they’re successful, and they’re not left holding the bag on costs.”
Cassels Brock has also written a full article on this decision and its potential implications, read it here.