Agricultural Law Netletter - Thursday, February 7, 2019 - Issue 412

HIGHLIGHTS

A Justice of the Ontario Superior Court of Justice has struck out a proposed class action commenced by an Ontario corn farmer against Syngenta Canada Inc. and Syngenta AG for damages sustained by the plaintiff and other Canadian corn producers for depressed corn prices in 2013 and 2014 which allegedly resulted from China's rejection of North American corn containing genetically modified traits developed by Syngenta which had been approved for use in Canada and the United States in 2010 and 2011. It was alleged that the corn was commercialized prematurely because China had not yet approved it; that Syngenta owed a duty of care to prevent the genetically modified corn from being co-mingled with other corn, and that Syngenta had misled North American producers with respect to the timing and substance of its import approval in China. Although a similar application to strike an action commenced in the United States had been dismissed, the Court struck the Canadian class action as it did not meet the criteria for a claim to recover pure economic loss. (Darmar Farms Inc. v. Syngenta Canada Inc., CALN/2019-003, [2018] O.J. No. 6254, Ontario Superior Court of Justice) NEW CASE LAW

Darmar Farms Inc. v. Syngenta Canada Inc.;

Ontario SuperiorCourt of Justice,

H.A. Rady J.,

November 28,2018.

CALN/2019-003

Full Text: [2018] O.J. No. 6254 | 2018 ONSC 7129

Class Action for Damages Sustained by Producers as a Result of Co-Mingling of Genetically Modified Products — Pure Economic Loss.

Darmar Farms Inc. ("Darmar Farms") commenced a proposed class action against Syngenta Canada and Syngenta AG ("Syngenta").

Darmar Farms is an Ontario corporation which had planted corn in 2013, 2014 and 2015.

Syngenta is a global agri-business headquartered in Switzerland with a subsidiary in Ontario. Syngenta developed two genetically modified corn seeds containing a genetic trait known as MIR 162 and marketed as "Agrisure Viptera" and "Agrisure Duracade".

Agrisure Viptera was approved for use in Canada and the United States in 2010. Agrisure Duracade was released in 2013, 2014 and 2015. North American corn prices fell when China rejected shipments of North American corn in 2013 and 2014 after it discovered some shipments contained Agrisure.

Darmar Farms (which had never planted Agrisure) alleged that a glut in the domestic corn supply resulted from China's rejection of North American corn and that Syngenta was responsible for depressed prices which resulted from this...