TORONTO, Dec. 10 /CNW/ - The Ontario Superior Court of Justice has
certified a class action against E.I. DuPont Canada Company on behalf of a
group of Canadian manufacturers of plastic parts supplying the automotive
industry. The case is the first of its kind in Canada to be certified as a
The claim alleges that DuPont Canada, through its pricing system and its
arrangements with its authorized distributors, set and maintained the price of
specialized resins, known as 'engineering resins', at artificially high
The action is brought by Axiom Plastics Inc. of Aurora, Ontario. Axiom
moulds plastic parts which go into automotive assemblies made by major
industry players such as Magna International Inc.
"Engineering resins are the single largest component in our sector's cost
of goods" says Axiom's president, Perry Rizzo.
"We believe that DuPont Canada's actions have harmed the competitiveness
of Axiom and all Canadian plastics manufacturers competing in the
international automotive market."
In the ruling, Justice Alexandra Hoy of the Ontario Superior Court of
Justice found that the main focus of the alleged conspiracy involved a system
of price concessions and rebates granted by DuPont Canada to its authorized
distributors which allowed DuPont Canada to effectively control the resale
price of resins sold by its independent distributors. The judge noted the
evidence that many of the automotive parts manufacturers are in dire financial
straits and are required to compete in a fiercely competitive market.
David Sterns, one of the lawyers for Axiom, pointed out that the court's
decision represents the first class action to be certified involving the
beleaguered Canadian auto parts industry.
The lawsuit is brought by the law firms of Sotos LLP and McCarthy
To view the Certification Order, dated December 4, 2007, and Justice
Hoy's Reasons for Decision, go to:
For further information:
For further information: David Sterns, Sotos LLP, (416) 977-0007,
email@example.com; Or Jonathan C. Lisus, McCarthy Tétrault LLP, (416)