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Franchise supplier’s duty of care doesn’t extend to economic loss

Friday, June 15, 2018 @ 9:33 AM | By Ben Hanuka

In 1688782 Ontario Inc. v. Maple Leaf Foods Inc. 2018 ONCA 407, a decision released on April 30, the Court of Appeal for Ontario held that the defendant Maple Leaf Foods, which was the exclusive supplier of core menu items to the Mr. Sub franchise system, was not liable to franchisees in the system for alleged economic loss caused by a food recall.

In 2008, at the time of the listeria outbreak, Maple Leaf was an exclusive supplier for two ready-to-eat meats for the Mr. Sub...