What is the scope of an offer made directly to a fraction of the class?

Ontario, Canada


The following excerpt is from 1250264 Ontario Inc. v. Pet Valu Canada Inc., 2011 ONSC 3871 (CanLII):

This case is readily distinguishable from Berry v. Pulley. In that case, the offer was made directly to all members of two subclasses, excluding the class representatives. Moreover, the offer was to settle the claims made in the action. In this case, the offer is being made, at least at the present time, to a fraction of the class, it is an offer to settle all commercial issues between the franchisor and the particular franchisee, including the franchisee’s entitlement to recovery in the class action. As I have said, on the present state of the record, there is no evidence that the offer is being made for the purposes of undermining the class action. On the contrary, it is being made for legitimate business reasons that benefit both parties.

In Berry v. Pulley, Perell J. was not addressing the situation of a single class member who, for compelling personal or financial reasons that were unrelated to the class action, wanted to settle with the defendant and to waive his or her entitlement to participate in the class action.

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