Montreal woman seeks to sue gas companies over price hike
Last Updated: Wednesday, January 10, 2007 | 7:23 PM ET
CBC News
A Montreal woman has asked a Quebec court for permission to launch a class action lawsuit targeting oil companies that increase gas prices in the province.
The plaintiff, Catherine Savoie, asked the court on Wednesday to give her the go-ahead to pursue the lawsuit on behalf of all Quebec motorists, who faced a 1.3 cent litre price increase at the pumps on Jan. 1, 2007.
The lawsuit argues that four companies — Petro-Canada, Shell Canada, Ultramar and Imperial Oil — colluded illegally to raise gas prices as a means of offsetting the future cost of a "green tax" on gas that will come into effect later in 2007.
By raising gas prices now, companies stand to pocket an extra five million dollars a week in excess profits, until Quebec's levy takes hold later in the year, and that's not fair to motorists, said Bruce Johnston, a Montreal lawyer representing Savoie.
If the court decides to certify the lawsuit, it will seek damages of $100 per motorist, Johnston said.
The Quebec Liberal government first proposed the gas levy in June 2006 as a measure to fund the province's climate change program. At the time, representatives from the petroleum industry vowed to protect their companies' bottom line by any means necessary.
Calls to the oil companies named in the lawsuit involved were not returned Wednesday.
It could take the Quebec court up to a year to render a decision on the lawsuit's merits.
Meanwhile, Quebec's minister of natural resources, Pierre Corbeil, will meet with representatives from the petroleum industry on the weekend to discuss the green tax.
