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8542/12 CP
ONTARIO
c Pe SUPERIOR COURT OF JUSTICE
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ETW
AMY BRAUEN
Plaintiff
- and -
'aid
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STATEMENT OF CLAIM
TO THE DEFENDANTS
If you are served in another province or territory of Canada or in the United States of
America, the period for serving and filing your statement of defence is forty days. If you are
served outside Canada and the United States of America, the period is sixty days.
Instead of serving and filing a statement of defence, you may serve and file a notice of
intent to defend in Form 18B prescribed by the Rules of Civil Procedure. This will entitle you
to ten more days within which to serve and file your statement of defence.
IF YOU PAY THE PLAINTIFF'S CLAIM, and $1000 for costs, within the time for
serving and filing your statement of defence, you may move to have this proceeding
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dismissed by the court. If you believe the amount claimed for costs is excessive, you may pay
the plaintiff s claim and $400 for costs and have the costs assessed by the court.
1. In this Statement of Claim, in addition to the terms that are defined elsewhere herein,
the following terms have the following meanings:
(a) "CJA" means the Ontario Courts of Justice Act, RSO 1990, c C-43, as
amended;
(b) "Class Members" means all people in Canada (excluding Quebec) who
purchased or leased one or more of the Defendants' Vehicles;
(c) "Class Proceedings Act" means the Class Proceedings Act, 1992, SO 1992, c
6, as amended;
(d) "Competition Act" means the Competition Act, RSC 1985, c C-34, as
amended;
(e) "Consumer Protection Act" means the Consumer Protection Act, 2002, SO
2002, c 30, Sch A, as amended;
(iv) Consumer Protection and Business Practices Act, SNL 2009, c C-31.1,
as amended, and Trade Practices Act, RSNL 1990, c T-7, as amended;
(h) "Hyundai" means the Defendants, Hyundai Auto Canada Corp. and Hyundai
Motor America Inc.;
CLAIM
2. The Plaintiff, Amy Brauen, on her behalf and on behalf of all Class Members, claims:
(a) an Order pursuant to the Class Proceedings Act, 1992 certifying this action as
a class proceeding and appointing her as representative plaintiff;
(b) a declaration that the Representations were false, misleading and contrary to s.
52(1) of the Competition Act;
I Specifically, the Fair Trading Act, RSA 2000, c F-2, s 6; Business Practices and Consumer Protection Act,
SBC 2004, c 2, s 4; The Business Practices Act, CCSM, c B120, s 2; Consumer Protection and Business
Practices Act, SNL 2009, c C-31.1, s 7; Trade Practices Act, RSNL 1990, c 1-7, s 5; Business Practices Act,
RSPEI 1988, c B-7, s 2; and Consumer Protection Act, SS 1996, c C-30.1, s 5.
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(g) a declaration that any funds received by the Defendants through the sale of its
Vehicles as a result of the Representations are held in trust for the benefit of
the Plaintiff and Class Members;
(i) a permanent injunction restraining the Defendants from continuing any actions
taken by it in contravention of the Consumer Protection Legislation, the
Consumer Protection Act, and the Competition Act;
(1) costs of this action on a substantial indemnity basis and, pursuant to s. 26(9) of
the Class Proceedings Act, the costs of notice and of administering the plan of
distribution of the recovery in this action, plus applicable taxes; and
(m) such further and other relief as to this Honourable Court may seem just.
2Specifically, Business Practices and Consumer Protection Act, SBC 2004, c 2, s 8; Consumer Protection and
Business Practices Act, SNL 2009, c C-31.1, s 8; Trade Practices Act, RSNL 1990, c T-7, s 6; and Business
Practices Act, RSPEI 1988, c B-7, s 2.
PARTIES
The Plaintiff
3. The Plaintiff, Amy Brauen, resides in Waterdown, Ontario. Ms. Brauen purchased
one the Defendants' Vehicles, specifically a 2011 Tucson, after receiving information from
the Defendants as to the fuel efficiency associated with their Vehicles, and specifically the
2011 Tuscon. The Plaintiff relied upon the Representations of the Defendants to her
detriment in making her purchasing decision.
The Defendants
6. The Defendants are resident in Ontario for the purpose of section 2 of the Consumer
Protection Act.
9. By way of the Representations, the Defendants misrepresented that the Vehicles had
performance characteristics, benefits, and/or qualities that they do not have. The Defendants
seriously and significantly overexaggerated the fuel efficiency of the Vehicles. Such false,
misleading or deceptive representations deceived or tended to deceive the Plaintiff and the
Class Members. The Plaintiff and the Class Members relied on the Representations to their
detriment.
10. Hyundai knew or ought to have known that the Plaintiff and the Class Members would
not, and could not reasonably protect their own interests by conducting their own testing and
that such purchasers would be unable to receive the benefit misrepresented to them from the
Defenadants, and further that the Plaintiff and the Class Members would rely on the
Defendants' misrepresentations to their detriment.
11. The Representations were made for the purpose of promoting, directly or indirectly,
the sale of the Defendants' Vehicles or for the purpose of promoting, directly or indirectly,
other business interests of the Defendants. The Representations were made knowingly or
recklessly. The Representations were made to the public, to the Plainti ff, and to the Class
Members. The Representations were false and/or misleading in a material respect, namely as
to the actual fuel efficiency of the Defendants' Vehicles.
12. Hyundai has received a large number of complaints regarding the discrepancy between
the advertised and actual fuel efficiency of their Vehicles.
13. The Plaintiff and Class Members suffered loss or damage as a result of the
Defendants' conduct by having to pay for more fuel than anticipated. Further, the Plaintiff
and Class Members were damaged by the Representations in as much as the Defendants'
broad dissemination of inflated fuel efficiency caused the Defendants' Vehicles to be
purchased and sold at prices higher than those at which such Vehicles would have been
purchased and sold had the Defndants' disseminated accurate fuel efficiency information with
respect to their Vehicles.
14. On November 2, 2012, Hyundai announced it had overstated the fuel economy of
about 900,000 vehicles sold in the United States since late 2010, citing an investigation by the
U.S. Environmental Protection Agency ("EPA"). Hyundai said they would lower the miles-
per-gallon estimates on most of their 2012 and 2013 vehicles as a reult of the EPA finding and
that they would compensate U.S. buyers for the difference. A Hyundai spokesperson said
"We're not going to argue this. We're going to pay people back for the money they had to
spend." There was no mention in the announcement of lowering the fuel efficiency estimates
in Canada or providing compensation to Canadian buyers.
RELEVANT LEGISLATION
15. The Plaintiff pleads and relies on the CJA, Consumer Protection Act, Class
Proceedings Act, Competition Act, and the Consumer Protection Legislation.
16. The Plaintiffs plead and rely on section 17.02 (g), (h), and (p) of the Rules of Civil
Procedure, allowing for service ex juris of the foreign defendants. Specifically, this
originating process may be served without court order outside Ontario in that the claim is:
PLACE OF TRIAL
17. The Plaintiffs propose that this action be tried in London, Ontario.
ONTARIO
SUPERIOR COURT OF JUSTICE
STATEMENT OF CLAIM
Siskinds LLP
Barristers & Solicitors
680 Waterloo Street
London, ON N6A 3V8
1950880.1