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 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 is yet to render her decision on the Plaintiff's application for certification of the proposed class action and the cross-application by AMVIC and Service Alberta for summary dismissal which were held on May 3-4, 2018.
We will organize a Townhall Meeting at our Calgary Office, located at 1730-639 5 Avenue S.W., to provide an update on the status of the lawsuit as soon as we have the decision of the Court.
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.
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.