Class Actions – Direct and Indirect Purchasers Gain Leverage in Certification of Competition Cases

Copyright 2010, Blake, Cassels & Graydon LLP

Originally published in Blakes Bulletin on Competition, Antitrust & Foreign Investment, June 2010

On June 3, 2010, the Supreme Court of Canada denied the defendants' application for leave to appeal of the decision of the B.C. Court of Appeal (BCCA) in the DRAM class action. In November 2009, the BCCA overturned a lower court decision and certified an alleged price-fixing case involving computer memory chips for both direct and indirect purchasers. The Supreme Court of Canada's denial of leave to appeal means the BCCA decision now stands as the leading appellate authority on the certification of antitrust class action cases in Canada, paving the way for the certification of combined direct and indirect purchaser class actions, especially in international conspiracy cases. Indeed, Ontario and British Columbia courts – relying on the BCCA decision – have recently certified direct and indirect purchaser class actions.