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Globe says harder now to sue BMW, rivals for defects

2025-08-05 07:26 ET - In the News

See In the News (C-BMW) BMW CDR (CAD Hedged)

The Globe and Mail reports in its Monday, Aug. 4, edition that an Ontario Court of Appeal decision in May will make it nearly impossible for Ontario motorists to sue manufacturers for "pure economic loss." The Globe's Mariya Postelnyak writes that the North v. BMW ruling determined that car owners cannot claim against manufacturers for defects causing damage to the car itself unless there is physical injury or damage to other property. James Sayce, a class-action lawyer, noted that claims in negligence for unsafe cars are limited to costs incurred to avoid future danger. Mr. Sayce says, "If you are travelling at high speeds on the highway and your car sort of self-destructs, that's not something that's recoverable in Ontario any more -- even if there is some sort of defect with the car that is the fault of the manufacturer." The recent Ontario appellate court decision will greatly impact product liability, making it nearly impossible for consumers to sue for "pure economic loss." The North v. BMW case involved BMW owners filing a class-action lawsuit against the manufacturer, claiming a common engine defect that could lead to sudden catastrophic failure, resulting in loss of vehicle power and control.

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