The Court of Appeal of Quebec has rendered its decision in the matter of Association pour la protection des automobilistes (“APA”) v. Toyota Canada Inc. The Quebec Superior Court had dismissed a class action against Toyota in which APA sought the recovery of fees collected by Toyota for the transfer of extended warranties. The Court of Appeal granted the appeal and reversed the decision of Justice Guthrie of the Superior Court. In doing so, the Court effectively stated that extended warranties offered by product manufacturers or distributors are nothing more than a form of conventional warranty and that the rules applicable to conventional warranties apply to such contracts, including the prohibition on asking for transfer fees.

In two recent decisions, the Court of Appeal of Quebec refused to recognize the validity of judgments rendered by an Ontario Court giving effect to a settlement approved in Ontario. These decisions are extremely important regarding the question of extraterritoriality of judgments rendered outside of a province in matters of class actions.