Don't Flush the Basics: OCHC v Sloan Valve Company Affirms Fundamental Product Liability Concepts

Ethan Schiff and Phoebe Goldig wrote an article for the Ontario Bar Association summarizing OCHC v. Sloan Valve Company, 2024 ONSC 1493.

Justice Corthorn of the Ontario Superior Court of Justice upheld two key product liability principles: firstly, buyers must have privity of contract to rely on implied warranties and conditions under the Sale of Goods Act, and secondly, for a negligence claim to be viable, the plaintiff must demonstrate actual damage or a real and substantial danger to person or property.

While not a class action, this case, addressing motions to strike under the Rules of Civil Procedure, carries significant implications for product liability class actions against manufacturers who aren't direct sellers and lack injury allegations. It suggests potential challenges for class action plaintiffs in meeting the certification test's cause of action threshold under the Class Proceedings Act, 1992.