Class Action Against Treadz Auto Group Inc., Sean O’Brien,
Alberta Motor Vehicle Industry Council, and her Majesty the Queen
in the Right of Alberta as Represented by Service Alberta
In mid-2014, there were numerous consumer transactions between members of the public and Treadz Auto Group Inc. (“Treadz”), 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 all trades in whole or part payment on the vehicle. These consumer transactions occurred during the period that Treadz was licensed with the Alberta and the Alberta Motor Vehicle Industry Council (“AMVIC”). In many instances Treadz sold vehicles but did not pay out liens or pay the proceeds of sale to the former vehicle owners.
In June 2015, Knight LLP filed a class action lawsuit against Treadz; 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 AMVIC. 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.
Treadz Class Action
On January 26, 2016, The Honourable Madam Justice S.L. Martin directed that the proposed Certification and Summary Dismissal Applications by Service Alberta and AMVIC were to be heard over a two-day period. These Applications are set for a two-day hearing on May 3, 2018, and May 4, 2018.
On March 9, 2018, Knight LLP filed an Amended Statement of Claim on behalf of the Representative Plaintiff in this matter. Please click here to view the Amended Statement of Claim filed with the Alberta Court of Queen’s Bench.
On January 11, 2016, Knight LLP made a freedom of information request to AMVIC and Service Alberta. The final date by which they were required to produce all documents in response to the request was May 2, 2017. To date, less than approximately 30% of the documents have been provided.
On January 23, 2018, an Originating Application was filed at the Court of Queen’s Bench as Action No. 1801-01152. The Originating Application seeks, among other things, an Order of mandamus, which allows Knight LLP to attend the offices of AMVIC and Service Alberta to process and release documents that are subject to the January 11, 2016, request. On March 16, 2018, the Originating Application was heard before Madam Justice M.H. Hollins. We will be receiving an oral decision on the Originating Application on Monday, March 26, 2018 at 9:00AM.
A copy of the Originating Application can be found here.
Sean O'Brien Update
Sean O’Brien appeared for a preliminary hearing on fraud charges before Br. Fraser at the Provincial Court on January 22, 2018. The preliminary hearing did not proceed as Mr. O’Brien agreed to a consent committal. The consent committal was originally scheduled for March 16, 2018, but has been adjourned to Friday, May 4, 2018. No trial date has been set for this matter.
Recent media releases in relation to Sean O’Brien can be found on CBC.
We welcome the opportunity to meet with Treadz Victims in person and address any concerns you may have. We have scheduled our next Town Hall Meeting for Thursday, May 10, 2018, at 6:30PM - 8:00PM.
Directions: Our Calgary office is located at 1730 - 639 5th Avenue Southwest. We have booked a meeting room located at the ground floor of the office tower we are in. Our office building is simply named the 639 5th Avenue building. This is located across the street and southeast of the McDougall Parkade, or two blocks north of the 6th Avenue LRT stop and the Calgary Courts Centre. The meeting rooms are located to the left of the ground floor security station, who will be on duty. Since the meeting is starting at 6:30PM, the building will be locked, and we will have staff present to let you in between 6:15PM - 6:45PM.
Please RVSP by clicking below or, alternatively, please contact [email protected] to advise if you are able or unable to attend.
Updated Registration System
We have recently launched an updated registration system. We ask that you sign up on our new registration system below even if you have previously communicated with Knight LLP. Please revisit our website often for updates and to keep your registration with us up to date.
If you would like to speak to one of the lawyers involved in this action, please give us a call. The lawyers will answer your questions regarding this proposed class action at no cost to you. Affected persons are encouraged to contact:
This update is intended to provide general information to proposed members of the Treadz class action. The update was not designed to answer individual questions or entitlement. Please do not rely upon the information provided as legal advice in respect to your individual situation.