This appeal raises important questions about consumer redress where a manufacturer is alleged to have known that a product contained a dangerous defect, including when consumers may recover economic losses in negligence.

The Ontario Court of Appeal found that the alleged diminished value of the unrepaired vehicles was not a recoverable loss. It also set aside the motion judge’s certification of the negligent design and manufacture claims because neither appellant had incurred a recoverable loss. As a result, the certification order was set aside.

PIAC’s intervention will bring a distinct consumer perspective to the issues before the Supreme Court of Canada. PIAC will focus on the importance of public safety and consumer protection, the imbalances in information and bargaining power between manufacturers and consumers, and the significant differences between manufacturer-consumer relationships and commercial arrangements involving sophisticated contracting parties. Consumers generally do not contract directly with manufacturers and often have less information and bargaining power.

PIAC will argue that limiting consumers’ recovery in this context creates an unacceptable moral hazard whereby consumers are left to bear the entire risk of real physical harm.

PIAC looks forward to assisting the Court on these important consumer protection issues. Watch this space and follow PIAC on our social media for more updates.

For more details, see here: Supreme Court of Canada case page

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