Our Montreal, Ottawa and Toronto offices represented the Canadian Hockey League (CHL) and its member leagues in a successful pre-certification motion to strike a proposed class action on the basis that it disclosed no reasonable cause of action (2021 FC 488). The plaintiff, a former CHL hockey player, alleged a vast conspiracy amongst the major North American hockey leagues, including the CHL and its member leagues, to limit the professional opportunities of Canadian hockey players. The motion to strike, led by the CHL and Hockey Canada, was heard by Chief Justice Crampton of the Federal Court and involved novel issues relating to the scope and application of the criminal conspiracy provisions of the Competition Act, specifically Sections 48 and 45.

The plaintiff appealed the Federal Court’s decision on the motion to strike. On August 17, 2022, the Federal Court of Appeal dismissed the plaintiff’s appeal.

The decisions are important because they represent the first time the scope of Section 48 of the Competition Act, relating to conspiracies in professional sport, has been substantively considered. The decision also provides competition law practitioners with welcome confirmation that Section 45(1) of the Act applies only to “sell-side” conspiracies, and does not apply to agreements between competitors for the purchase or acquisition of goods and services.

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