Chadha v. Bayer Inc. et al., (2003) 168 O.A.C. 143 (CA)
Judge | Austin, Rosenberg and Feldman, JJ.A. |
Court | Court of Appeal (Ontario) |
Case Date | January 14, 2003 |
Jurisdiction | Ontario |
Citations | (2003), 168 O.A.C. 143 (CA);2003 CanLII 35843 (ON CA);2003 CanLII 35843 (NS CA);63 OR (3d) 22;223 DLR (4th) 158;31 BLR (3d) 214;[2003] OJ No 27 (QL);119 ACWS (3d) 378;168 OAC 143;23 CLR (3d) 1;31 CPC (5th) 40 |
Chadha v. Bayer Inc. (2003), 168 O.A.C. 143 (CA)
MLB headnote and full text
Temp. Cite: [2003] O.A.C. TBEd. JA.015
Avininder Chadha and Renu Chadha (plaintiffs/appellants) v. Bayer Inc., Bayer Corporation and Harcross Pigments Inc. (defendants/respondents)
(C37224)
Indexed As: Chadha v. Bayer Inc. et al.
Ontario Court of Appeal
Austin, Rosenberg and Feldman, JJ.A.
January 14, 2003.
Summary:
The plaintiffs alleged that the defendants conspired to fix the price of iron oxide pigments used in various construction materials, particularly bricks and inter-locking paving stones. Particularly, the plaintiffs asserted that they, and other building owners, indirectly sustained damages as a result of being forced to pay a higher purchase price. At issue was whether the plaintiffs' action should be certified as a class proceeding under the Class Proceedings Act.
The Ontario Superior Court, in a judgment reported (1999), 107 O.T.C. 36, granted the application and in supplementary reasons settled the terms of the certification order and the notice terms. The defendants sought and obtained leave to appeal.
The Ontario Divisional Court, O'Driscoll, J., dissenting, in a judgment reported (2001, 147 O.A.C. 223, allowed the appeal and set aside the order certifying the action as a class proceeding. Damage, a necessary component of the cause of action of each plaintiff, could not be proved on a class-wide basis. Damage must be proved individually for each plaintiff, making the class action process not the preferable procedure. The plaintiffs appealed.
The Ontario Court of Appeal dismissed the appeal.
Practice - Topic 209.3
Persons who can sue and be sued - Individuals and corporations - Status or standing - Class actions - Certification - Considerations (incl. when class action appropriate) - The plaintiff homeowners alleged that the defendants conspired to fix the price of iron oxide pigments used in, inter alia, bricks and paving stones - Particularly, the plaintiffs alleged that they and other homeowners sustained damages by having to payer a higher purchase price for their homes - At issue was whether the plaintiffs' action should be certified as a class proceeding under the Class Proceedings Act - The Ontario Court of Appeal affirmed that this was not an appropriate case to certify a class action - Liability was not a common issue - The evidence had assumed a pass-through of an illegal price increase, but provided no methodology for proving it or dealing with the variables affecting the end price of real property at any particular point in time - Proof of loss could not be presented on a class-wide basis as a common issue - Since damage must be proved individually for each plaintiff (estimated to be 1.1 million), the class action process was not the preferable procedure.
Cases Noticed:
Illinois Brick v. Illinois (1977), 431 U.S. 720, refd to. [para. 10].
Hollick v. Metropolitan Toronto (Municipality) et al., [2001] 3 S.C.R. 158; 277 N.R. 51; 153 O.A.C. 279, refd to. [para. 28].
Caputo et al. v. Imperial Tobacco Ltd. et al. (1997), 40 O.T.C. 30; 34 O.R.(3d) 314 (Gen. Div.), refd to. [para. 29].
Taub v. Manufacturers Life Insurance Co. (1998), 40 O.R.(3d) 379 (Gen. Div.), refd to. [para. 29].
Linerboard Antitrust Litigation, Re (2002), 305 F.3d 145 (C.A. 3rd Cir.), refd to. [para. 32].
Newton v. Merrill Lynch, Pierce, Fennerd Smith Inc. (2001), 259 F.3d 154 (C.A. 3rd Cir.), refd to. [para. 38].
Hanover Shoe Inc. v. United Shoe Machinery Corp. (1968), 392 U.S. 481, refd to. [para. 41].
Vitapharm Canada Ltd. et al. v. Hoffmann-La Roche Ltd., [2000] O.T.C. 877; 4 C.P.C.(5th) 169 (Sup. Ct.), refd to. [para. 43, footnote 2].
Robertson v. Thomson Corp. et al. (1999), 86 O.T.C. 226; 43 O.R.(3d) 161 (Gen. Div.), refd to. [para. 69].
Statutes Noticed:
Class Proceeding Act, S.O. 1992, c. 6, sect. 5(1) [para. 4]; sect. 24(1)(b) [para. 60].
Competition Act, R.S.C. 1985, c. C-34, sect. 16].
Authors and Works Noticed:
Page, William H., The Limits of State Indirect Purchaser Suits: Class Certification in the Shadow of Illinois Brick (1999), 67 Antitrust L.J. 1, pp. 36, 37 [para. 67].
Counsel:
Paul J. Pape, for the plaintiffs;
J.L. McDougall, Q.C., and Kent E. Thomson, for the respondents.
This appeal was heard on June 3, 2002, before Austin, Rosenberg and Feldman, JJ.A., of the Ontario Court of Appeal.
The judgment of the Court of Appeal was delivered by Feldman, J.A., and released on January 14, 2003.
To continue reading
Request your trial-
Boal v. International Capital Management Inc., 2021 ONSC 651
...Motors of Canada Ltd., 2005 BCCA 540 (C.A.), leave to appeal to S.C.C. ref’d, [2005] S.C.C.A. No. 545; Chadha v. Bayer Inc. (2003), 63 O.R. (3d) 22 (C.A.), leave to appeal to S.C.C. ref’d [2003] S.C.C.A. No. 106; Taub v. Manufacturers Life Insurance Co., 40 O.R. (3d) 379 (Gen. Div.), aff’d ......
-
Mancinelli v. Royal Bank of Canada, 2020 ONSC 1646
...Motors of Canada Ltd., 2005 BCCA 540 (C.A.), leave to appeal to S.C.C. ref’d, [2005] S.C.C.A. No. 545; Chadha v. Bayer Inc. (2003), 63 O.R. (3d) 22 (C.A.), leave to appeal to S.C.C. ref’d [2003] S.C.C.A. No. 106; Taub v. Manufacturers Life Insurance Co., 40 O.R. (3d) 379 (Gen. Div.), af......
-
Pro‑Sys Consultants Ltd. v. Microsoft Corporation, 2013 SCC 57
...Illinois Brick Co. v. Illinois, 431 U.S. 720 (1977); Multiple Access Ltd. v. McCutcheon, [1982] 2 S.C.R. 161; Chadha v. Bayer Inc. (2003), 63 O.R. (3d) 22; California v. ARC America Corp., 490 U.S. 93 (1989); Alberta v. Elder Advocates of Alberta Society, 2011 SCC 24, [2011] 2 S.C.R. 261; H......
-
Price v. H. Lundbeck A/S, 2018 ONSC 4333
...Motors of Canada Ltd., 2005 BCCA 540 (C.A.), leave to appeal to S.C.C. ref’d, [2005] S.C.C.A. No. 545; Chadha v. Bayer Inc. (2003), 63 O.R. (3d) 22 (C.A.), leave to appeal to S.C.C. ref’d [2003] S.C.C.A. No. 106; Taub v. Manufacturers Life Insurance Co., 40 O.R. (3d) 379 (Gen. Div.), af......
-
Boal v. International Capital Management Inc., 2021 ONSC 651
...Motors of Canada Ltd., 2005 BCCA 540 (C.A.), leave to appeal to S.C.C. ref’d, [2005] S.C.C.A. No. 545; Chadha v. Bayer Inc. (2003), 63 O.R. (3d) 22 (C.A.), leave to appeal to S.C.C. ref’d [2003] S.C.C.A. No. 106; Taub v. Manufacturers Life Insurance Co., 40 O.R. (3d) 379 (Gen. Div.), aff’d ......
-
Mancinelli v. Royal Bank of Canada, 2020 ONSC 1646
...Motors of Canada Ltd., 2005 BCCA 540 (C.A.), leave to appeal to S.C.C. ref’d, [2005] S.C.C.A. No. 545; Chadha v. Bayer Inc. (2003), 63 O.R. (3d) 22 (C.A.), leave to appeal to S.C.C. ref’d [2003] S.C.C.A. No. 106; Taub v. Manufacturers Life Insurance Co., 40 O.R. (3d) 379 (Gen. Div.), af......
-
Pro‑Sys Consultants Ltd. v. Microsoft Corporation, 2013 SCC 57
...Illinois Brick Co. v. Illinois, 431 U.S. 720 (1977); Multiple Access Ltd. v. McCutcheon, [1982] 2 S.C.R. 161; Chadha v. Bayer Inc. (2003), 63 O.R. (3d) 22; California v. ARC America Corp., 490 U.S. 93 (1989); Alberta v. Elder Advocates of Alberta Society, 2011 SCC 24, [2011] 2 S.C.R. 261; H......
-
Price v. H. Lundbeck A/S, 2018 ONSC 4333
...Motors of Canada Ltd., 2005 BCCA 540 (C.A.), leave to appeal to S.C.C. ref’d, [2005] S.C.C.A. No. 545; Chadha v. Bayer Inc. (2003), 63 O.R. (3d) 22 (C.A.), leave to appeal to S.C.C. ref’d [2003] S.C.C.A. No. 106; Taub v. Manufacturers Life Insurance Co., 40 O.R. (3d) 379 (Gen. Div.), af......
-
The Second Opinion: Ontario Court of Appeal Dismisses 'Problem Gambler' Class Action
...of the CPA (the other cases being Hollick v. Toronto (City) (1999), 46 O.R. (3d) 257, aff'd, [2001] 3 SCR 158; Chadha v. Bayer Inc. (2003), 63 O.R. (3d) 22; Kumar v. Mutual Life Assurance Company Of Canada (2003), 226 D.L.R. (4th) 112; Zicherman v. Equitable Life Insurance Company Of Canada......
-
Competition Class Actions: A Year of Substantial Change
...between them will take place at the common issues trial. Footnotes Chadha v. Bayer Inc. (2001), 54 O.R. (3d) 520 (Div.Ct.); aff'd (2003), 63 O.R. (3d) 22 Markson v. MBNA Canada Bank (2007), 85 O.R. (3d) 321 (C.A.) [Markson] Cassano v. The Toronto-Dominion Bank (2007), 87 O.R. (3d) 401 (C.A.......
-
Supreme Court Of Canada Will Hear Indirect Purchaser Appeals
...rule in Illinois Brick remains federal law. In Canada, the Ontario Court of Appeal considered Illinois Brick in Chadha v. Bayer Inc. (2003), 63 OR (3d) 22 (CA) but decided that the evidence in the case did not support that damages had been passed on to the indirect purchasers. Since that ti......
-
2010 Canadian Competition Law - Year in Review
...10 Irving Paper Ltd. v. Atofina Chemicals Inc., [2009] O.J. No. 4021 (Sup. Ct.) leave to appeal ref'd 2010 ONSC 2705 (Div. Ct.). 11 (2003), 63 O.R. (3d) 22 (C.A.), leave to appeal ref'd [2003] S.C.C.A. No. 12 (2007), 85 O.R. (3d) 321 (C.A.). This was class action against a credit card compa......
-
Beyond the Courtroom: Access to Justice, Privatization, and the Future of Class Action Research
...polyols, and various auto parts. 1 (1999), 45 OR (3d) 29 (SCJ) [Chadha SCJ], rev’d (2001), 54 OR (3d) 520 (Div Ct), rev’d (2003), 63 OR (3d) 22 (CA) [Chadha CA], leave to appeal to SCC refused (2003), 65 OR (3d) xvii. 2 See Price v Panasonic, [2002] OTC 426 (SCJ); Harmengies v Toyot......
-
A Decade of Competition Law Class Actions: From Chadha to the 'new Trilogy'
...polyols, and various auto parts. 1 (1999), 45 OR (3d) 29 (SCJ) [Chadha SCJ], rev’d (2001), 54 OR (3d) 520 (Div Ct), rev’d (2003), 63 OR (3d) 22 (CA) [Chadha CA], leave to appeal to SCC refused (2003), 65 OR (3d) xvii. 2 See Price v Panasonic, [2002] OTC 426 (SCJ); Harmengies v Toyot......
-
Table of Cases
...193, 356 Chadha v. Bayer Inc. (2001), 54 O.R. (3d) 520, [2001] O.J. No. 1844 (Div. Ct.), aff’d (2003), 63 O.R. (3d) 22, [2003] O.J. No. 27 (C.A.) .............. 312 Chancey v. May (1722), Prec. Ch. 592, 24 E.R. 265 .............................................. 318 Chaplin v. Hicks, [1911] ......
-
Editor-in-chief’s Introduction
...polyols, and various auto parts. 1 (1999), 45 OR (3d) 29 (SCJ) [Chadha SCJ], rev’d (2001), 54 OR (3d) 520 (Div Ct), rev’d (2003), 63 OR (3d) 22 (CA) [Chadha CA], leave to appeal to SCC refused (2003), 65 OR (3d) xvii. 2 See Price v Panasonic, [2002] OTC 426 (SCJ); Harmengies v Toyot......