Woods successful on behalf of Blockbuster in the Court of Appeal of Quebec
(8/3/2007)
On March 8, 2007, the Quebec Court of Appeal rendered a judgment in the class action case of Buonamici vs. Blockbuster Canada Inc. (“Blockbuster”), a matter raising the issue of the reasonableness of the late fees charged by Blockbuster. The Court of Appeal, adopting the arguments raised by Woods LLP on behalf of Blockbuster rejected the class action, thereby maintaining the first instance judgment which had decided that (1) the “late fees” charged by Blockbuster could be considered an alternative obligation instead of a penal clause and (2) that these late fees were not excessive. The first judge had rejected the main argument of Buonamici that the late fees were abusive for the consumers because of the large discrepancy between the fees charged and the damage suffered by Blockbuster. The Court of Appeal decided that whether Blockbuster’s late fees are an additional rental price or a payment pursuant to a penal clause, they are not abusive. The Court of Appeal also awarded Blockbuster its costs in both instances and confirmed that the principle according to which costs are awarded against the losing party, is applicable also in class actions
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