Supreme Court of Canada clarifies the law of tort for pure economic losses and highlights the necessity of contracts
In 1688782 Ontario Inc. v. Maple Leaf Foods Inc. 2020 SCC 35, the Supreme Court of Canada concluded that franchisees could not make a claim against a supplier, Maple Leaf Foods, for the purely economic losses caused by potentially contaminated meats because they had not entered into a contract directly with Maple Leaf and Maple Leaf never undertook to provide them with edible meats. The Plaintiffs were franchisees of Mr. Sub. Under the franchise agreement, the franchisees were only allowed to purchase meat from the defendant unless they had Mr. Sub’s permission. While Mr. Sub had entered into a contract ... [more]
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