Canada´s Highest Court Punishes Manufacturers

Originally published in the Litigation Bulletin November 2005

A relatively recent Supreme Court of Canada decision confirms that the courts may use consumer protection legislation to punish manufacturers - not just protect consumers. The highest court in Canada awarded $25,000 in exemplary damages, on top of $48,000 in compensatory damages, against an automotive manufacturer for violating Saskatchewan's Consumer Protection Act.

The facts in Prebushewski v. Dodge City Auto (1984) Ltd. and Chrysler Canada Ltd. are straightforward. The plaintiff purchased a new pick-up truck and financed the entire $43,000 purchase price through her bank. About a year and a half later, the pick-up spontaneously caught fire while parked and was completely destroyed. The fire was caused by a short-circuit in the daytime running light module.