Settlement Approval

The Ontario Superior Court of Justice approved settlement in this matter at a hearing on December 6, 2013.

The settlement involves a fund of $1,575,000.00 being established, which, after deduction of legal costs and Representative Plaintiff Compensation, will be distributed to Class Members on a pro-rata basis in accordance with rebates received under the SFCC program.

Order of Belobaba, J., dated December 6, 2013

The Court approved a notice and distribution program which will be carried-out shortly. A copy of the Court-Approved notice will be posted here soon.

We urge you to contact us and provide us with your updated contact information. Please email us at

Further updates will follow.

Settlement of Action

This action has been settled.

The settlement is subject to court approval.

A court approval hearing will take place on December 6, 2013, at 10:00 a.m. at Osgoode Hall, 130 Queen Street West, Toronto, Ontario.

Notice of Settlement

Motion Record re: Settlement Approval

Factum re: Settlement Approval


Order of Strathy, J., dated December 22, 2010

Amended Statement of Claim

Order of Strathy, J., re certification

Order of Strathy, J., dated October 15, 2010

Endorsement of Mr. Justice Strathy dated September 20, 2010

Reasons for Decision of Mr. Justice Strathy dated August 23, 2010


The deadline for opting-out of this class proceeding was January 15, 2011.

Only 4 class members opted-out. The Opt-Out Administrator has reported to the court on the Opt-out process as required.

Notice of Certification

Opt-Out Form

Frequently Asked Questions

Certification Materials

Plaintiff’s Motion Record Re Certification

Responding Motion Record of Sears Re Certification

Responding Motion Record of HCBG Re Certification

Overview of Claim

A statement of claim was issued in the Ontario Superior Court of Justice in Toronto on May 15, 2009 proposing a class action brought by licensees operating Sears Floor Covering Centers against Sears Canada Inc., Sears, Roebuck and Co. and Home Coverings Buying Group Inc. The claim alleges receipt of undisclosed rebates/secret commissions by Sears to the determent of licensees.

The claim seeks damages of $15 million, plus punitive and exemplary damages.

The action has been commenced under the Class Proceedings Act, 1992, S.O. 1992, c.6, as amended, by McKee’s Carpet Zone.

The statement of claim alleges that Sears entered into license agreements with various parties and, contrary to the terms of the license agreements and duties and obligations owed in law, Sears received undisclosed rebates/secret commissions from approved suppliers arising from the sale of flooring products. The statement of claim alleges that these undisclosed rebates amount to secret commissions, contrary to section 426(1) of the Criminal Code of Canada.

The plaintiff, McKee’s Carpet Zone, entered into a license agreement with Sears in August, 1998. The license agreement provided McKee with the exclusive right to operate a Sears Floor Covering business in Newmarket, Ontario. The license agreement required that McKee’s purchase products only from suppliers approved by Sears. The intended effect of this provision is that McKee’s would be able to purchase products at a discounted price in comparison to the price it would pay if it were not an agent for Sears. In or about, June, 2007 McKee’s received information that caused it to suspect that undisclosed rebates were being paid to Sears’ agent, Home Coverings Buying Group Inc. and/ or Sears, by approved suppliers.

The statement of claim contains allegations which have yet to be proven in Court.

If you have not already contacted us, we would appreciate hearing from you as it might assist us in pursuing this claim. You may contact us via e-mail, telephone, mail, courier, fax, etc.

Contact Us

If you would like more information regarding this claim or wish to be added to our database of claimants, you may e-mail us at:

You can contact us directly by telephone at Scarfone Hawkins LLP
at 905-523-1333.

You can contact us by fax at 905-523-5878.

Due to the volume of inquiries, please allow one week for a response.