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ARTICLE · 09 APRIL 2019

Not All Customers Are The Same: Top Court Rules Business Customers Cannot Join Consumer Class Action

Both sets of customers had executed agreements promising to resolve disputes exclusively by way of binding arbitration.

CanadaLitigation, Mediation & Arbitration

In its recent ruling in TELUS Communications Inc. v Wellman, 2019 SCC 19 (Wellman), the Supreme Court of Canada held that business customers of TELUS that entered into mandatory arbitration agreements cannot seek relief in court by participating in a class action together with consumers.

In Wellman, a narrow majority of the Supreme Court ruled that for consumers as a protected category of litigant, the right to seek redress by way of class action takes precedence over any contrary promise to resolve disputes through arbitration. For all other litigants, however, the importance of enforcing an arbitration agreement trumps the right of these parties to participate in a class proceeding covering the same subject matter.

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