Leave To Appeal Is Granted In Franchise Class Proceeding

On June 22, 2011, the Divisional Court granted leave, in part, to appeal from the lower court decision of Justice Strathy in Trillium Motor World Ltd. v. GMC Ltd. et al. in which a proposed class proceeding brought by former General Motors car dealership franchisees against General Motors of Canada (GMC) and Cassels Brock & Blackwell LLP (Cassels) was certified.

The defendants did not seek leave to appeal all thirteen common issues that were certified by Justice Strathy, but both GMC and Cassels took issue with certain common issues.

GMC sought leave to appeal the validity of the following common issues:

1. Whether GMC owed a duty of fair dealing to the class members, and breached the duty through its conduct concerning the delivery of Wind-Down Agreements;