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

Introduction

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 May 3 and May 4, 2018, Madam Justice G.A. Campbell heard three applications. Knight LLP made an application on behalf of the Representative Plaintiffs for certification of the proposed class action, and the Defendants, AMVIC and Service Alberta, made cross-applications seeking summary dismissal of the class action. After hearing these applications Madam Justice G.A. Campbell reserved her decision. We will send an update as further details arise.

On May 23, 2018, Knight LLP attended a one-hour hearing with Madam Justice G.A. Campbell with respect to the contingency fee agreement of the proposed class action. Madam Justice G.A. Campbell has reserved her decision on each of the preceding applications. Upon receipt of a decision, or as further details arise, we will send an update. 


Sean O'Brien Update

On September 7, 2018, Sean O'Brien was convicted of fraud greater than $5,000.00, contrary to Section 380(1)(A) of the Criminal Code of Canada. Mr. O'Brien was further sentenced to a 3 year term of imprisonment. On October 17, 2018, a Restitution Order was granted by the Honourable Justice DeWit in the amount of $2,373,835.32, which is payable by Mr. O'Brien on or before October 12, 2020.


Townhall Meeting

We welcome the opportunity to meet with Treadz Victims in person and address any concerns you may have. We have scheduled our next Townhall Meeting for March 27, 2019, at 6:30PM - 8:00PM.

Directions: Our Calgary office is located at 1730 - 639 5th Avenue Southwest. We have booked a meeting room located on the ground floor of our office tower. Our building is simply named 639 5th Avenue. This is located across the street and southeast of the McDougall Centre, 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. A security officer will be on duty if any assistance is required. Since the meeting is starting at 6:30PM and the building will be locked, we will have staff present to assist with entry from 6:15PM until 6:30PM.

Please RVSP by clicking below or, alternatively, please contact [email protected] to advise if you are able or unable to attend.



Contact Us

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:

Beth Warcholak
[email protected]
(403) 472-9963

Kelly Hjorth
[email protected]
(403) 354-3400


IMPORTANT NOTE

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.

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