Ontario Court Clarifies Application Of Regulated Conduct Defence On A Pre-Trial Motion

A recent decision by Justice K.M. van Rensburg of the Ontario Superior Court of Justice has affirmed the applicability of the Regulated Conduct Doctrine (RCD) as a possible defence to conduct prohibited by the Competition Act while also clarifying the extent to which evidence is necessary in order to assert the defence.  

In Fournier Leasing Company Ltd. v. Mercedes-Benz Canada Inc. the plaintiffs, a group of automobile dealers who import BMW, Mercedes Benz, and Mini vehicles into Canada, brought a motion to certify a class proceeding against BMW and Mercedes Canada for conduct that they alleged breaches Part VI of the Competition Act and also constitutes a tort. In regards to the Competition Act claims, the plaintiffs in their pleading alleged the existence of a conspiracy between the two car manufacturers and their dealers.