SUPPLIERS OF GOODS - Product liability - Duty to warn (product labeling)

Law360 Canada (March 30, 2023, 6:48 AM EDT) -- Appeal by Isagenix International from dismissal of its application to stay the litigation based on an arbitration clause. Isagenix sold various edible products, marketed as health products. Harris enrolled into the Isagenix “Preferred Customer” program. Isagenix said Harris was subject to the terms and conditions of a Customer Contract which contained an arbitration clause. Then, Harris enrolled with Isagenix as a reseller, described as an “Associate” who was bound by Isagenix Policies and Procedures, all of which formed part of the “Associate Contract”. She thus agreed to an arbitration clause as part of that contract. Harris commenced a claim against Isagenix alleging Isagenix designed, manufactured, distributed, marketed and supplied products in Canada that were recalled by Health Canada and the Canadian Food Inspection Agency due to their unsafe over-fortification of vitamins and minerals, contrary to the labelling of these products. She alleged she suffered an overdose of vitamins and minerals and suffered various personal injuries due to her consumption of these products, for which she claimed damages. Nowhere in Harris’s claim did she plead or rely on any contractual relationship with Isagenix as the basis for Isagenix owing her a duty of care. Isagenix applied for a stay of Harris’ claim on the ground that the claims made in the proceeding were subject to an arbitration agreement. The trial judge concluded there was no arguable case that the arbitration clauses covered the type of claim advanced by Harris. He therefore dismissed Isagenix’s application....
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