Latifi v. The TDL Group Corp.
Samir Latifi
Law Firm / Organization
Klein Lawyers LLP
The TDL Group Corp.

Background:
Samir Latifi, a former Tim Hortons employee, appealed the dismissal of his proposed class action against The TDL Group Corp., the franchisor of Tim Hortons. Latifi alleged that a "No-Hire Clause" in franchise agreements unlawfully restricted employee mobility, suppressed wages, and violated Section 45 of the Competition Act.

Legal Issues:

  • Competition Law Violation: Latifi claimed the No-Hire Clause constituted an unlawful conspiracy to fix wages and restrict job opportunities.

  • Civil Conspiracy: He argued that TDL and its franchisees engaged in a predominant purpose conspiracy to harm employees by limiting job mobility and suppressing wages.

  • Contractual Justification: TDL contended that the clause aimed to protect franchisees' investment in employee training rather than harm employees.

Judgment and Reasoning:
The British Columbia Court of Appeal upheld the lower court's decision to dismiss the case, finding:

  • The No-Hire Clause was not intended to harm employees, but rather to benefit franchisees by preventing competitors from poaching trained workers.

  • The uncontradicted evidence from TDL’s Vice President supported the clause’s business purpose.

  • Latifi failed to provide direct evidence that franchisees conspired with TDL to harm workers.

Costs and Award:
The court dismissed the appeal, ordering costs in favor of The TDL Group Corp., though the exact amount was not specified in the judgment.

Court of Appeals for British Columbia
CA49876
Class actions
Respondent