Summary Judgment On Six-Packs: Hughes v. LCBO

On April 17, 2019, the Court of Appeal for Ontario released its decision in Hughes v Liquor Control Board of Ontario, upholding the dismissal of a proposed class action against the Liquor Control Board of Ontario ("LCBO"), Brewers Retail Inc. ("The Beer Store") and The Beer Store's large beer company owners t This case illustrates (i) the use of summary judgment as a means to dispose of class actions, and (ii) the willingness of Ontario Courts to apply the regulated conduct doctrine to shield conduct that would be considered unlawful were it not authorized by provincial legislation.

Background

The appellants alleged violations of the Competition Act and the Ontario Liquor Control Act, civil conspiracy and the novel tort of misconduct by a civil authority. The appellants claimed that the LCBO and The Beer Store conspired to divide the Ontario beer sales market between them and that a publicly-disclosed June 2000 Framework Agreement between the LCBO and The Beer