Jensen V. Samsung: Federal Court Of Appeal Confirms Evidentiary Requirement More Than "Mere Formality"

• Jurisdiction: United States,Federal
• Author: Ms Danielle Royal and Alexandra Urbanski
• Law Firm: Stikeman Elliott LLP
• Published date: 07 August 2023

In Jensen v. Samsung Electronics Co. Ltd.,2023 FCA 89, the Federal Court of Appeal (the "Court") upheld the lower court's refusal to certify a proposed class action involving allegations that the defendants had breached sections 45 and 46 of theCompetition Act,R.S.C. 1985, c. C-34 (the "Act"). The decision reinforces the increased willingness by courts to scrutinize the proposed causes of action and pleadings in determining whether proposed class actions should move forward.

Background

The plaintiffs sought to certify a class action alleging that the manufacturers of dynamic random-access memory (DRAM) chips violated sections 45 and 46 of the Act by conspiring through direct communications in private meetings and through public statements - or "signalling" - to each other, to suppress the global supply of DRAM and increase DRAM prices.

As detailed in our previous post on this litigation, the defendants successfully argued that certification should be denied on the basis that the plaintiffs:

• failed to establish a reasonable cause of action for breach of sections 45 and 46 of the Act on the facts set out in the Statement of Claim and
• ...