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.
Sean O'Brien Update
On May 4, 2018, Madam Justice Hughes adjourned the matter for summary disposition on August 10, 2018 at 10:00am. It is expected that the Crown and Defence will make joint submissions and some Victim Impact Statements will be read on August 10, 2018.
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 September 12, 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 Centre and park, 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 6:00PM, the building will be locked, and we will have staff present to let you in between 6:15 and 6:30PM.
Please RVSP by clicking below or, alternatively, please contact [email protected] to advise if you are able or unable to attend.
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.