Business customers that agreed to arbitrate disputes cannot
“piggyback” their claims onto a consumer class action
in court, the Supreme Court of Canada has ruled.
The court’s 5-4 decision in TELUS Communications Inc. v Wellman,
released on April 4, 2019, means that claims based on
business-to-business agreements will go to mediation and then
arbitration, while consumers’ claims will continue as a class
proceeding in the Ontario courts.
Mr. Wellman commenced a class proceeding on behalf of TELUS
customers alleging that the company overcharged customers by
rounding up calls to the next minute from 2002 to 2010 without
disclosing the practice. The proposed class consisted of
approximately two million mobile phone subscribers, 30% of which
were business customers. The other 70% were consumers who purchased
plans for personal use.
