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Polyurethane Class Action 

UPDATE – March 18, 2014

As previously reported, a settlement agreement was reached with the defendants Domfoam International, Inc., Valle Foam Industries (1995) Inc., A-Z Sponge & Foam Products Ltd. (together, the “Domfoam Defendants”), and Dean Brayiannis and certain other related individuals (together, the “Individual Settling Parties”) for the sum of $1,266,000, assignment of rights in other lawsuits, and cooperation with the plaintiffs in pursuing their claims against the non-settling defendants.  The settlement agreement was of no force until it was approved by the court.  Such approval was obtained in Ontario on February 11, 2014 and in BC on March 10, 2014.  A summary of the agreement and its implications is provided below. 

Please note, all distribution of settlement funds will be determined at a later date.  The funds are being held in trust for the benefit of the Settlement Class Members.  When the courts have approved the method for distributing the settlement funds, another notice will be provided explaining which Settlement Class Members are eligible for direct payment and how Settlement Class Members can apply to receive payment. Settlement Class Members should keep all purchase documents and can contact one of the lawyers listed below with any questions.

On March 18, 2014, counsel for the plaintiffs served on the defendants the application materials seeking certification of the British Columbia actions as class proceedings.  We anticipate the applications for certification will be heard by the BC court this summer. A link to copy of the application for certification is provided below.

Important Documents:

  •  Domfoam Settlement Agreement (see link below under Important Documents)
  •  Reasons for Judgment (Approval of Domfoam Settlement Agreement in Ontario actions)
  • Notice of Application seeking certification (BC Trillium and Majestic actions)
  • Domfoam Settlement Agreement Approval Order (Ontario Actions)

 

Settlement with Domfoam Defendants and Related Individuals

UPDATE - AUGUST 19, 2013

On January 10, 2012, a settlement agreement was reached with the defendants Domfoam International, Inc., Valle Foam Industries (1995) Inc., A-Z Sponge & Foam Products Ltd. (together, the “Domfoam Defendants”), and Dean Brayiannis and certain other related individuals (together, the “Individual Settling Parties”) for the sum of $1,266,000, assignment of rights in other lawsuits, and cooperation with the plaintiffs in pursuing their claims against the non-settling defendants. Under the terms of the settlement, Settlement Class Members release the Individual Settling Parties and other related parties from claims regarding the purchase of Foam Products in Canada during the Settlement Class Period, and agree to discontinue or dismiss certain proceedings as against the Domfoam Defendants and Brayiannis.

Copies of the Pre-Approval Notice, which provides further information about the Domfoam settlement agreement, and the Domfoam settlement agreement are available below.

The class actions in BC, Ontario and Quebec have been certified/authorized against the Domfoam Defendants and Brayiannis for settlement purposes only. Copies of the court orders certifying the actions are available below.

The Domfoam Defendants were previously granted protection under the Companies’ Creditors Arrangement Act (“CCAA”). The claims deadline has now passed. All claims against the Domfoam Defendants and certain of the Settling Individuals which were not filed in the CCAA Proceeding have been barred and extinguished. Under the settlement, the plaintiffs reserved their right to file a claim on behalf of Settlement Class Members in the CCAA Proceeding. The plaintiffs filed a claim on behalf of Settlement Class Members in the CCAA Proceeding in advance of the claims deadline. The outcome of this claim has not yet been determined.

The Domfoam settlement agreement is subject to court approval. Hearings to approve the settlement agreement will be held as follows:

  • In BC: at the Vancouver courthouse on October 25, 2013 at 9:00 a.m.
  • In Ontario: at the London courthouse on October 25, 2013 at noon
  • In Quebec: at the Montreal courthouse on October 28, 2013 at 9:00 a.m.

If you have no objection to the Domfoam settlement and you want to participate in the class actions, you do not need to do anything.

If you wish to object to the Domfoam settlement, you must send your written objection by October 18, 2013 to: 

All comments or objections received will be provided to the courts.

Distribution of Settlement Funds

The way in which the settlement funds will be distributed will be determined at a later date. The settlement funds are being held in trust for the benefit of the Settlement Class Members for the time being. Once the courts have approved the method for distributing the settlement funds, another notice will be provided explaining which Settlement Class Members are eligible for direct payment and how Settlement Class Members can apply to receive payment. Settlement Class Members should keep all purchase documents and can contact one of the lawyers listed above with any questions.

Your Options

If you want to participate in the polyurethane foam class actions and the Domfoam settlement, you do not need to do anything. You will be bound by the settlement and any future settlements or court decisions and will not be able to opt out of the class actions in the future.

If you do not want to participate in the polyurethane foam class actions, you must complete and send an Opt Out Form to National Class Actions (contact information is below) by mail, courier, fax or email by October 18, 2013 (the “Opt Out Deadline”). Opt Out Forms can be downloaded below or are available from www.foamclassaction.ca. If you opt out, you will retain any right to sue individually (except against the Domfoam Defendants and certain of the Individual Settling Parties) but will not receive the benefit of this or future settlements or judgments in the class actions.

Mail or Courier:      

National Class Action Services
175 Bloor Street East,
Suite 807, South Tower,
Toronto, Ontario M4W 3R8
Attn: Paul Battaglia

Fax: (416) 342-1761

Email:  Paul@trilogyclassactions.ca

Class Counsel Fees

Class Counsel legal fees and disbursements must be approved by the courts. At the settlement approval hearings Class Counsel may collectively request legal fees of up to 30% of the settlement funds, plus disbursements and applicable taxes to be paid out of the settlement funds.

If you wish to object to these fees, you must send your written objection by October 18, 2013 to:

All comments or objections received will be provided to the courts.

Important Documents

Polyurethane Foam Class Action Proposed

November 2010

A proposed class action has been commenced in the Supreme Court of British Columbia regarding an alleged conspiracy to fix prices of polyurethane foam and/or products containing polyurethane foam (“Foam Products”) in Canada. The defendants are Vitafoam Products Canada Limited, Vitafoam Incorporated, Hickory Springs Manufacturing Company, Valle Foam Industries (1995) Inc., Domfoam International Inc., A-Z Sponge & Foam Products Ltd., The Carpenter Company, Woodbridge Foam Corporation, Flexible Foam Products Inc., Scottdel Inc., Foamex Innovations, Inc. and Future Foam, Inc.

The claim, which was brought by Majestic Mattress Mfg. Ltd, alleges that, from January 1999 onwards, the defendants conspired to fix the prices of Foam Products and retain their respective market shares. A copy of the notice of civil claim can be viewed below.

Justice Bowden of the Supreme Court of British Columbia has been appointed as the Case Management Judge. Luciana Brasil and Ward Branch are counsel for the Plaintiff and for the proposed class. Proposed class actions have also been commenced by Camp Fiorante Matthews Mogerman in BC, as well as in Ontario and Quebec. Our firm is working cooperatively with counsel in these actions to prosecute the class actions against the defendants.

If you would like to obtain more information about this case, or would like to be added to our database of known potential claimants, please contact our paralegal Ulla Herlev by email (uherlev@branmac.com), or by phone: (604) 654-2960.