On August 17, the Federal Court of Appeal upheld a decision to strike a proposed class action alleging a conspiracy amongst the major North American hockey leagues to limit the professional opportunities of Canadian hockey players.
The decision confirms that section 45 of the Competition Act (the Act) does not apply to “buy-side” conspiracies between competitors for the purchase or acquisition of a product or service (subject to an important caveat in the employment law context discussed below). The case also marks the first time a court has substantively considered the scope of the lesser-known professional sports conspiracy provisions of the Competition Act.
From a procedural perspective the decision also provides guidance on motions to strike as an important tool for weeding out unmeritorious class action claims at an early stage in the proceedings.
Mohr v National Hockey League et al involved a proposed class action against all major North American Hockey leagues, including the NHL, AHL, ECHL, CHL, and Hockey Canada.
The plaintiff, a former CHL hockey player, alleged that the defendant hockey leagues and Hockey Canada conspired to limit Canadian major junior hockey players’ opportunities to negotiate and play in the professional league of their choice, contrary to the criminal provisions of section 48 of the Act prohibiting conspiracies relating to professional sport.
The CHL, its member leagues, and Hockey Canada, sought to strike the proceedings on two...
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