Shoppers Drug Mart
The discovery process of this certified class action is now complete. Both the class and Shoppers Drug Mart are bringing motions for summary judgment. On behalf of the Class, we will be asking the Court to decide the certified common issues in favour of the Class and find Shoppers Drug Mart liable to the Class and award a remedy. Shoppers Drug Mart, on the other hand, will be asking the Court to dismiss the lawsuit without a finding of liability.
Summary judgment is an alternative to a conventional trial. The parties will exchange motion records containing the evidence, and there will be cross-examinations conducted before the hearing. The motions are scheduled to be heard by the Ontario Superior Court of Justice in July 2022. Please check back for updates closer to that date.
Shoppers Drug Mart operates a large system of franchised pharmacy stores across Canada. Each of these stores is independently owned and operated by franchisees (called “Associates”). Associates are required to enter into standard form franchise agreements with Shoppers Drug Mart (the “Associate Agreement”). The claim is brought on behalf of Associates across Canada, excluding Quebec.
The claim alleges that Shoppers Drug Mart has breached certain terms of the Associate Agreement, as well as its statutory and common law duty of good faith and fair dealing regarding the operation of the franchise system.
In respect of all Associates, excluding Quebec, the claim seeks damages for excessive charges by Shoppers Drug Mart in respect of cost recovery fees and equipment rentals and leasing, as well as commercially unreasonable procurement and inventory policies.
The action also seeks compensation for Ontario Associates for damages suffered by them as a result of Shoppers Drug Mart’s failure to remit professional allowances to them.
For Associates governed by the 2002 Associates’ Agreement, the claim alleges that they have been inappropriately charged the Optimum Program Fee.
The Defendant denies the allegations made in the claim. None of the allegations have been proven in court.
This action has been certified as a class proceeding. The class members are:
- All current or former Shoppers Drug Mart Associates resident in Canada (save for Associates with franchised businesses located in Quebec) who entered into an Associate Agreement with Shoppers Drug Mart Inc. and/or Shoppers Drug Mart (London) Limited dated between January 1, 2002 and January 1, 2010 (the “2002 Agreement Class”), and
- All current or former Shoppers Drug Mart Associates resident in Canada (save for Associates with franchised businesses located in Quebec) who entered into an Associate Agreement with Shoppers Drug Mart Inc. and/or Shoppers Drug Mart (London) Limited dated between January 1, 2010 and July 9, 2013 (the “2010 Agreement Class”).
The certification motion was argued in two parts. Copies of the court orders and the decisions can be accessed under the "Documents" tab.
This website will be updated when significant events occur in this proceeding.
This action is receiving financial support from the Ontario Class Proceedings Fund.
The Fund pays for some of the disbursements incurred in the course of prosecuting this action, and it will pay any adverse court costs that might be ordered payable by the representative plaintiff.
There will be a levy payable to the Fund that will reduce the amount of any settlement or judgment award to which the class may become entitled. The levy will be comprised of repayment of any disbursements paid by the Fund and 10% of the net award or settlement funds.
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If the class action is successful, how will class members be affected?
If the class action is unsuccessful, how will class members be affected?
How can I contact Paliare Roland LLP?
Last Updated January 2018
- Action commenced by way of Notice of Action on November 13, 2010
- Statement of Claim filed and served on December 20, 2010
- Plaintiffs’ Motion Record for Certification served on April 8, 2011
- Defendants’ Responding Record on Certification served on October 13, 2011
- Plaintiffs’ Reply Motion Record served on November 11, 2011
- Defendants Motion Record for motion to strike served on March 15, 2012
- Motion to strike and one aspect of the certification hearing heard the week of August 27, 2012
- Justice Perell’s decision on the motion to strike and one aspect of the certification motion released October 3, 2012
- Order dated October 3, 2012
- Plaintiffs’ Fresh as Amended Statement of Claim and Amended Motion Record for Certification served on December 21, 2012
- Balance of the certification motion was heard the week of June 3. 2013
- Justice Perell's decision on the balance of the motion for certification was released on July 9, 2013.
- Order dated July 9, 2013
- Notice sent to Class Members, November 29, 2013
- Opt out period ended February 21, 2014
Last Updated July 2014
- Shoppers Drug Mart sued by associate owner, Globe and Mail, November 22, 2010
- Shoppers Drug Mart sued by 2 store owners, CBA, November 22, 2010
- Shoppers Drug Mart hit with class action, The Toronto Sun, November 23, 2010
- Shoppers suit over drug costs, The National Post, November 24, 2010
- November 5, 2013, CLASS ACTION CERTIFIED against Shoppers Drug Mart Inc. and Shoppers Drug Mart (London) Limited (together, "Shoppers Drug Mart")
- July 17, 2013, Shoppers Class Action lawsuit update
Last Updated November 2013