A former Pontiac-Buick-GMC dealership that lost its case against General Motors of Canada doesn’t have to post security to continue its appeal in a class action suit, an Ontario judge has ruled. The suit is on behalf of 181 Canadian franchisees that signed wind-down agreements with the automaker.
GM waited too long after the case was dismissed in July 2015 to seek $5.4 million in security from Trillium Motor World Ltd. of Scarborough, Ont., Judge Grant Huscraft of the Ontario Court of Appeal held.
The suit accused GM of breaching its obligations to franchisees that signed wind-down agreements when the automaker restructured in 2009, including misrepresentation and violation of the duty of fair dealing.
Trillium, which closed in 2009, received a $642,000 wind-down payment. The other dealerships collectively received more than $123 million.
Trillium lost the case after a 41-day trial.
Trillium, which already posted $500,000 security, and sole shareholder Thomas Hurdman are insolvent, the decision said.