Making It Rain: Supreme Court Allows Umbrella Purchaser Claims

On September 20, the Supreme Court of Canada issued its long-awaited decision in an important competition class action. Pioneer Corp. v. Godfrey (Godfrey) 2019 SCC 42, provides guidance on a number of issues that recur in these types of cases. Significantly, the case resolves an issue that judges in Ontario and British Columbia (including at the appellate level) had disagreed on: can “umbrella purchasers” be part of a class action for price fixing? An eight-member majority of the Supreme Court of Canada sided firmly with the plaintiffs and answered “yes”.

What you need to know

• The Supreme Court’s decision means that plaintiff classes involved in competition class actions are likely to become larger, increasing exposure for defendants.