Osler Update: Supreme Court of Canada Allows Parties to Escape Arbitration Clause and Pursue Class Action

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This Osler Update is a summary of the much anticipated Supreme Court of Canada decision in Seidel v. Telus Communications Inc. (Telus)which was released on March 18, 2011. At issue was whether a mandatory arbitration clause in the appellant's consumer contract with Telus meant that she could not proceed with a class action against Telus. In a ruling which appears to weaken the enforceability of arbitration clauses in both consumer and commercial agreements across the country, a narrow, five-judge majority of the Court permitted the class action to proceed with respect to one statutory claim notwithstanding the arbitration clause.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Jennifer Dolman, Osler, Hoskin & Harcourt LLP | Attorney Advertising

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