In a 5:4 split decision released on November 5, 2020, a majority
of the Supreme Court of Canada held in 1688782 Ontario
Inc. v. Maple Leaf Foods Inc. that a manufacturer's
breach of its duty to supply products safe for human consumption
does not entitle third-party franchisees within the supply chain to
recover damages in tort for economic loss or reputational injury.
However, Justice Karatkatsanis's clear and incisive dissent,
which garnered the support of three of her colleagues, suggests
that further debate surrounding the nature and extent of supply
chain liability has not been foreclosed.
Case history
In the summer of 2008, Maple Leaf discovered that certain of its
processed meats were contaminated by an outbreak of listeria. Maple
Leaf issued a voluntary recall and temporarily closed the
production plant where the contaminated meat originated. The recall
resulted in a shortage of product for six-to-eight weeks, which
affected certain menu offerings of
