Class Action Against Treadz Auto Group Inc., Sean O’Brien,
Alberta Motor Vehicle Industry Council, and her Majesty the Queen
in the Right of Alberta as Represented by Service Alberta

Introduction

In mid-2014, there were numerous consumer transactions between members of the public and Treadz Auto Group Inc. (“Treadz”), whereby Treadz agreed to display, demonstrate, and advertise the members’ consignment vehicles and, if a member’s vehicle was sold, to pay that member a settlement within ten days. In addition, Treadz agreed to deduct and pay all liens with respect to the consignment vehicle and accept all trades in whole or part payment on the vehicle. These consumer transactions occurred during the period that Treadz was licensed with the Alberta and the Alberta Motor Vehicle Industry Council (“AMVIC”). In many instances Treadz sold vehicles but did not pay out liens or pay the proceeds of sale to the former vehicle owners.

In June 2015, Knight LLP filed a class action lawsuit against Treadz; Treadz’s sole director and shareholder, Sean O’Brien; Her Majesty the Queen in the Right of Alberta as represented by the Minister of Service Alberta; and AMVIC. The claim alleges, among other things, that Treadz breached the Consignment Agreement by refusing or neglecting to comply with one or more of the terms contained therein. Further, it is alleged that Treadz was unjustly enriched as a result of the revenues it made from the sale of the members’ vehicles while the members suffered corresponding deprivation. The claim also alleges that a duty of care was owed by AMVIC and Service Alberta to the members and that both defendants, through negligent acts or omissions, breached this duty of care.

Treadz Class Action

On December 20, 2020, Madam Justice G.A. Campbell released her decision regarding the

certification of the proposed class action. In her decision Justice Campbell concluded that there

was sufficient merit to the Plaintiff’s claims against the defendants Sean O’Brian and Treadz

Auto Group Inc. and certified the class action against them respectively. However, in the same

decision, Justice Campbell granted Service Alberta and AMVIC’s application for summary

dismissal, concluding that there was no merit to the Plaintiff’s action against them as neither

owed the Plaintiff’s a private law duty of care. MacMillan Knight LLP aims to appeal this

decision.

Following the release of Justice Campbell’s decision, MacMillan Knight LLP aims to appeal the

summary dismissal of Service Alberta and AMVIC. Similarly, MacMillan Knight LLP will begin

preparing to commence litigation on behalf of the Plaintiffs against the certified Defendants

Sean O’Brian and Treadz Auto Group Inc. MacMillan Knight LLP intends to conduct a townhall

meeting on Janaury 14, 2020 from 6pm - 9pm to discuss Justice Campbell’s decision and lawsuit strategy in greater detail.

Townhall Meetings occur at our Calgary Office, located at 1730-639 5 Avenue S.W., to provide an update on the status of the lawsuit.

Sean O'Brien Update

On September 7, 2018, Sean O'Brien was convicted of fraud greater than $5,000.00, contrary to Section 380(1)(A) of the Criminal Code of Canada. Mr. O'Brien was further sentenced to a 3 year term of imprisonment. On October 17, 2018, a Restitution Order was granted by the Honourable Justice DeWit in the amount of $2,373,835.32, which is payable by Mr. O'Brien on or before October 12, 2020.

Contact Us

If you would like to speak to one of the lawyers involved in this action, please give us a call. The lawyers will answer your questions regarding this proposed class action at no cost to you. Affected persons are encouraged to contact:

Sean Mihalcheon
Sean@complex.law
(403) 473-8341

© By MacMillan Knight LLP 2020