Court Confirms Validity Of Arbitration Agreement And Class Action Waiver

Article by Robert Torralbo , Claude Marseille and Adam Spiro

Copyright 2011, Blake, Cassels & Graydon LLP

Originally published in Blakes Bulletin on Class Actions, November 2011

OVERVIEW

On November 23, 2011, the Federal Court of Canada confirmed that it does not have jurisdiction to hear a Motion to Certify an Action as a Class Action, in the presence of a binding arbitration agreement and related class action waiver. The decision was issued by the Honorable Justice Richard Boivin in Murphy v. Compagnie Amway Canada.

PROCEDURAL CONTEXT

On October 23, 2009, the plaintiff, an Independent Business Owner (IBO) who distributed Amway's products, instituted a proposed class action before the Federal Court, on behalf of all Canadian residents who distributed Amway's products starting October 23, 2007. He claimed that Amway had breached various dispositions of the Competition Act of Canada (the Act), and sought damages of C$15,000 under section 36 of the