A Long Waive Goodbye: Atlantic Lottery Corp v Babstock 2020 SCC 19

A narrow majority of the Supreme Court of Canada recently struck and dismissed a proposed class action claiming the Atlantic Lottery Corporation ("ALC") should disgorge their profits from video lottery terminals("VLTs").

The plaintiffs asserted the defendants had deceptively designed the VLTs to be addictive when they had an obligation to provide "safe games". Instead of seeking damages for financial loss, the plaintiffs only pursued ALC's profits from VLTs which they claimed to be in the range of $60-90 million annually.

In striking the claim, the SCC covered a wide swath. The Court addressed fundamental aspects of negligence, contract, unjust enrichment and the scope of available remedies for each. Notably, the Court concluded the so-called doctrine of waiver of tort should be abandoned. The plaintiffs argued they could rely on waiver of tort as independent cause of action allowing them to disgorge the profits of the defendants regardless of whether the