On March 15, 2018, Justice Perell of the Ontario Superior Court of Justice dismissed a proposed class action ( Hughes v. Liquor Control Board of Ontario) concerning a document (Framework) signed by the Liquor Control Board of Ontario (LCBO) and the owner and operator of The Beer Store, Brewers Retail Inc. (BRI) in 2000. The plaintiffs alleged, among other things, that provisions in the Framework constituted an agreement between the LCBO and BRI to allocate the market for the sale of beer in Ontario contrary to the conspiracy offence in section 45 of the Canadian Competition Act. The Framework allegedly restricted the LCBO's ability to sell beer in packages of more than six containers or to sell beer carried by BRI to holders of liquor licences such as bars and restaurants. (The LCBO operates stores that carry a wide range of liquor products, including beer. BRI sells all package sizes at its beer stores in Ontario.)
Following extensive affidavit evidence and cross-examinations, Justice Perell granted summary judgment and dismissed the claim in its entirety without a trial. In doing so, Justice Perell applied the regulated conduct defence (RCD), holding that even if the challenged conduct might otherwise have violated the conspiracy offence, the conduct was authorized in a manner consistent with provincial legislation.
Read our analysis of the decision.
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