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ARTICLE · 28 APRIL 2011

B.C. Court of Appeal Bars Indirect Purchaser Claims

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On April 15, 2011, the B.C. Court of Appeal released two decisions that overturned lower court decisions certifying claims of classes of indirect purchasers and determined that indirect purchasers do not have a valid cause of action for damages for price-fixing.

CanadaLitigation, Mediation & Arbitration
Linda Plumpton
Linda Plumpton
Sandeep Joshi
Sandeep Joshi
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On April 15, 2011, the B.C. Court of Appeal released two decisions that overturned lower court decisions certifying claims of classes of indirect purchasers and determined that indirect purchasers do not have a valid cause of action for damages for price-fixing.1 These decisions, if upheld, will have a significant impact on competition class actions in Canada.

In Sun-Rype, a combined class of direct and indirect purchasers claimed that the defendants had conspired to fix the price of high-fructose corn syrup, a sweetener that was used by direct purchasers in the manufacture of products, or components of products, that were ultimately purchased by indirect purchasers. In Microsoft, a class of indirect purchasers claimed that Microsoft conspired with various computer manufacturers (the direct purchasers) to overcharge for Microsoft products that came preloaded on computers. The appeals involved overlapping issues and the decisions were released together.

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