Manitoba Court Dismisses Proposed Class-Action Lawsuit Against North West Company
A Manitoba judge has dismissed all claims in a proposed class-action lawsuit accusing the North West Company of retaining federal food subsidy funds meant for northern consumers, ruling each allegation certain to fail. Former Manitoba Court of King’s Bench Chief Justice Glenn Joyal issued the judgment last month following an initial statement of claim filed in February 2025, CBC reported.
The legal challenge targeted the North West Company’s role in the federal Nutrition North Canada program, which distributes financial support to northern retailers to lower the retail costs of eligible goods. Operating since the program’s inception in 2011, the retailer was accused by Indigenous plaintiffs of keeping a portion of the subsidy as profit by imposing higher margins on eligible products. Plaintiffs Nellie Kusugak, Malaya Qaunirq Chapman, Isabelle Chapadeau, and Chief Darryl Wastesicoot alleged breach of contract, unjust enrichment, and violations of consumer protection laws, seeking damages for northern residents facing food insecurity.
Legal Reasoning Behind the Dismissal of Claims
Justice Joyal concluded that the plaintiffs lacked standing to sue, noting that the Nutrition North Canada funding agreement is strictly a contract between the North West Company and the federal government. Third-party beneficiaries hold no legal right to compel benefits arising from a contract they are not party to. The court also found the unjust enrichment claims legally unviable because the disputed funds stemmed directly from a formal government contract.
Regarding consumer protection allegations, the decision stated that the plaintiffs failed to establish a direct causal link between business practices and personal losses. The court observed that the claimants admitted they shopped at the stores because no viable alternatives existed in their communities, meaning they would have made the purchases regardless of the pricing structure.
North West Company denies customers right to subsidy
Throughout the proceedings, counsel for the North West Company maintained that customers never held any inherent right to the subsidy itself. Lawyer Michael Rosenberg of McCarthy Tétrault confirmed that the action effectively concludes unless the plaintiffs pursue an appeal or request leave to amend their statement of claim.
Barring an appeal or a motion for leave to amend, this action is at an end,
Rosenberg said.
Brodie Noga, a lawyer representing the plaintiffs through JFK Law in Vancouver, stated that his clients are actively reviewing the court’s decision and weighing their options.
What is the Nutrition North Canada program?
What is the Nutrition North Canada program?
Nutrition North Canada is a federal retail subsidy program established in 2011 that provides financial support to northern retailers. Participating companies are required to pass the full subsidy amount directly to consumers by reducing the prices of eligible perishable foods.
Who filed the proposed class-action lawsuit?
The lawsuit was filed in the Manitoba Court of King’s Bench by Indigenous residents Nellie Kusugak, Malaya Qaunirq Chapman, Isabelle Chapadeau, and Chief Darryl Wastesicoot, with legal representation from Vancouver-based JFK Law.
What legal grounds did the judge cite to strike the lawsuit?
Justice Joyal ruled that consumers cannot sue over a contract between a private company and the federal government, that unjust enrichment does not apply to funds governed by formal contracts, and that the plaintiffs failed to link store practices directly to financial losses.
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