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ARTICLE · 06 MAY 2019

Mandatory Arbitration Provisions In The Class Action Context

Siskinds LLP
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On April 4, 2019, the Supreme Court of Canada issued reasons in TELUS Communications Inc. v. Wellman. The Supreme Court's 5-4 decision provides important guidance on the applicability

CanadaLitigation, Mediation & Arbitration
Daniel Bach
Daniel Bach
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Mandatory Arbitration Provisions in the Class Action Context: TELUS Communications Inc. v. Wellman, 2019 SCC 19

On April 4, 2019, the Supreme Court of Canada issued reasons in TELUS Communications Inc. v. Wellman. The Supreme Court's 5-4 decision provides important guidance on the applicability of arbitration clauses in the class action context, and makes clear that potentially unfair arbitration agreements should be addressed through the doctrine of unconscionability.

  1. Background

The Plaintiff brought a proposed class action on behalf of Ontario residents who entered into mobile phone contract subscribers with the Appellant, TELUS Communications. The Plaintiff alleged that TELUS engaged in a secret practice of "rounding-up" calls to the next minute, resulting in overcharges to class members. The class included consumers, as that term is defined in Ontario's Consumer Protection Act, and "non-consumers"—i.e., businesses.

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