Treadz Auto Group Lawsuit

Class Action Litigation - Calgary, Vancouver

FILED CLASS ACTION AGAINST TREADZ AUTO GROUP INC., SEAN O’BRIEN, HER MAJESTY THE QUEEN IN THE RIGHT OF ALBERTA AS REPRESENTED BY SERVICE ALBERTA, AND THE ALBERTA MOTOR VEHICLE INDUSTRY COUNCIL

In June 2015, Knight LLP filed a class action lawsuit against Treadz Auto Group Inc, Treadz’s sole Director and shareholder, Sean O’Brien, Her Majesty the Queen in the Right of Alberta as represented by the Minister of Service Alberta and the Alberta Motor Vehicle Industry Council (“AMVIC”). The class action arose in relation to a consumer transaction between members of the public and Treadz during the period of time that Treadz was licensed with AMVIC, whereby Treadz agreed to display, demonstrate, and advertise the members’ consignment vehicles and, if a member’s vehicle was sold, to pay that member a settlement within ten days. In addition, Treadz agreed to deduct and pay all liens with respect to the consignment vehicle and accept any and all trades in whole or part payment on the vehicle.

The claim alleges, among other things, that Treadz breached the Consignment Agreement by refusing or neglecting to comply with one or more of the terms contained therein. Further, it is alleged that Treadz was unjustly enriched as a result of the revenues it made from the sale of the members’ vehicles while the members suffered corresponding deprivation. The claim also alleges that a duty of care was owed by AMVIC and Service Alberta to the members and that both defendants, through negligent acts or omissions, breached this duty of care.

The Honourable Madame Justice S.L. Martin who was our previous Case Management Judge was appointed on June 17, 2016 as a judge of the Alberta Court of Appeal.

The Court applications regarding the Certification and Summary Dismissal, set for early September were adjourned.

The Honourable Madame Justice G.A Campbell is the new Case Management Judge. A Case Management meeting will occur on September 22, 2016. At this meeting dates the Certification and Summary Dismissal application will be obtained.

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