Federal Court Confirms Validity Of Arbitration Agreement And Class Action Waiver

Overview

On February 14, 2013, the Federal Court of Appeal unanimously affirmed a Federal Court decision declining jurisdiction to hear a motion to certify a class action in the presence of a binding arbitration agreement and class action waiver. The decision was drafted by the Honourable Justice Nadon (Justices Gauthier and Trudel concurring) in Murphy v. Amway Canada Corporation.

The Procedural Context

On October 23, 2009, the plaintiff, an Independent Business Owner who distributed Amway's products, instituted a proposed class action before the Federal Court of Canada 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 Act.