Dominion Lending Centres Served with Claim
VANCOUVER, British Columbia, July 28, 2021 (GLOBE NEWSWIRE) -- Dominion Lending Centres Inc. (TSXV:DLCG) (“DLCG” or the “Corporation”) has been served with a Notice of Civil Claim (the “Claim”) filed in the Supreme Court of British Columbia by Canadian Mortgage Experts Inc. and Michael Lloyd (collectively, “CME”). Pursuant to the Claim, CME alleges various misconduct by DLCG as a franchisor, all of which DLCG denies.
The Corporation and CME have been parties to a franchise agreement for over 10 years and did enter into an amended and restated franchise agreement dated January 1, 2020 (the “Franchise Agreement”). In addition to CME being a DLC franchisee, we understand that its principal is a stakeholder in a technology company that competes with the Corporation’s subsidiary Newton Connectivity Systems Inc. (“Newton”). Pursuant to the Claim, CME alleges that the terms of the Franchise Agreement are unfair and that it has been treated unfairly by DLCG. Further, CME is disgruntled that DLCG has built Newton into an industry leading technology company to the prejudice of its competitors.
CME is seeking certification of the Claim under the Class Proceedings Act (British Columbia) and are seeking statutory damages for breach of the Franchise Act (British Columbia) and recission of franchise agreements between DLC and the potential class members.
Gary Mauris, Chairman and Chief Executive Officer of DLCG commented: “We have complied with the provisions of the Franchise Agreement and are comfortable with our legal position relating to the Claim. We consider this Claim to be entirely without merit and we intend on launching a vigorous defense. We find it incredibly disappointing to be served with such a frivolous claim by CME after it has enjoyed over a decade of success as a DLC franchisee. Further, we find CME’s claims curious given they have chosen to enter into multiple successive franchise agreements with DLC (the most recent in 2020). We understand that Mr. Lloyd is unhappy about the success and increased adoption of Newton’s Velocity, however, a meritless class action is not going to change DLC’s approach.”
Mr. Mauris added: “We are humbled and truly touched by the tremendous outpouring of support by our many franchise owners and mortgage professionals in response to the reporting of this matter.”
About Dominion Lending Centres Inc.
The DLC Group is Canada’s leading network of mortgage professionals. The DLC Group operates through Dominion Lending Centres and its three main subsidiaries, MCC Mortgage Centre Canada Inc., MA Mortgage Architects Inc. and Newton Connectivity Systems Inc., and has operations across Canada. The DLC Group’s extensive network includes ~6,500 agents and 515 locations. Headquartered in British Columbia, the DLC Group was founded in 2006 by Gary Mauris and Chris Kayat.
Contact information for the Corporation is as follows:
| James Bell Co-President 403-560-0821 | Robin Burpee Co-Chief Financial Officer 403-455-9670 | Amar Leekha Sr. Vice-President, Capital Markets 403-455-6671 |
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