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Business in Motion Class Action

UPDATE:  March 16, 2015

On March 12, 2015, the Court of Appeal dismissed the appeal of the default judgment filed by Alan Kippax. This means that the $6.5 million judgment is final and we now have 10 years to try and collect that amount. We have pursued many leads received from potential class members; however so far, none of these leads have been fruitful. If you have any information that may help us collect money or assets, please contact chermanson@branmac.com.

Please check back on this website from time to time to see if there are any developments. If we do recover any funds, we will be creating a process to distribute the funds to class members and will be giving notice to known and eligible class members of what they need to do to claim their portion of the money. If you are a class member and have not yet registered as such, please do so by completing and submitting the questionnaire set out below so we can make sure you get direct notice if and when there is a distribution process in place.

Update June 20, 2014

We were successful in opposing the motion to set aside default judgment brought by Alan Kippax and BIM. This means that the judgment against Kippax and BIM for $6,560,000 was upheld. We will now continue the execution phase of the litigation, which will involve trying to collect money owing to Class Members. If you would like to read the decision of Mr. Justice Rennie, click here.

If you have any information as to where Mr. Kippax or BIM may currently have funds or assets, or where the money generated by the BIM scheme went, please contact Chelsea Hermanson at chermanson@branmac.com.

Update June 17, 2014

Counsel for Mr. Kippax and Business in Motion International Corporation brought an application to set aside the default judgment that was granted by the Honourable Mr. Justice Rennie of the Federal Court of Canada on January 10, 2014. We opposed this application which was heard on June 6, 2014. Justice Rennie reserved his judgment, meaning we do not know the outcome yet. We will update this page with more information as soon as Justice Rennie issues his decision.

Update February 5, 2014:

Here is a link to CBC News Eric Rankin's investigative report, click here.

Update January 10, 2014:

We were successful in obtaining summary judgment in the amount of $6,560,000 against Allan Kippax and Business in Motion International Corporation (“BIM”). If you would like to read the decision of Mr. Justice Rennie of the Federal Court, click here. The action benefits all Class Members, which are all persons resident in Canada who purchased a Perpetual Motion Product from or through BIM (“Class Members”).

We will now move to the execution phase of the litigation, which is where we try to collect the money owing to Class Members.

We Need Your Help!

Mr. Kippax is under imminent risk of deportation. We would like to find money for distribution to Class Members before Mr. Kippax is out of the jurisdiction. If you have any information as to where Mr. Kippax or BIM may currently have funds or assets, or where the money generated by the BIM scheme went, please contact Ulla Herlev at uherlev@branmac.com.

Please Register

If we are able to locate funds, we will devise a plan to distribute the amounts located to Class Members. Having a good understanding of the number of persons who are Class Members is key to devising a distribution plan. If you are a Class Member and have not contacted us in the past, we ask that you register with us by either completing a Questionnaire (set out at bottom of this page) (if you have not already done so), or contacting Ulla Herlev at uherlev@branmac.com or (604) 654-2964.  By doing so, we will be able to provide further notice to you if and when we manage to collect funds for distribution, or to give you an update when there are new developments.

Persons who have already completed a Questionnaire DO NOT need to complete another one at this point, but are asked to keep us apprised of any changes in their contact information.

December 3, 2013:

The motion for default judgment against BIM and Kippax was heard by Justice Rennie on November 28, 2013. Justice Rennie has reserved his decision, meaning we do not know the outcome yet. We will update this page with more information as soon as Judge Rennie issues his decision.

September 26, 2013:

The motion for default judgment against BIM and Kippax will be heard by Justice Rennie of the Federal Court on November 28, 2013. Another update will be posted once Justice Rennie releases his decision.

October 25, 2012:

We are continuing to prepare materials for an upcoming default judgment motion against BIM and Kippax. A date for the motion has not been scheduled yet.

November 20, 2011:

Watch this video for an explanation of the class action lawsuit, then read below for more details.

You can also sign up for updates on our Facebook group, BIM Pyramid Class Action.

November 10, 2011:

Notice of Certification

A class action lawsuit has been certified in the Federal Court of Canada claiming that Business in Motion International Corporation and Alex Kippax (“BIM”) ran an illegal pyramid scheme and an illegal multi-level marketing scheme. You can read copy of the Statement of Claim and Order certifying the action.

HOW WILL THE LAWSUIT PROCEED?

A trial will be held to determine the common issues in the action.  If these issues are determined in favor of the class members, there might still need to be individual hearings to determine the entitlement of each class member to a refund. 

WHAT DO I HAVE TO DO TO PARTICIPATE?

There is nothing you have to do right now. Unless you opt out, you will be bound by the result of the common issues trial. However, in order to make sure you are notified of any important developments in the action, we recommend you register on our website at www.BIMclassaction.com.

WHAT IF I DO NOT WANT TO PARTICIPATE IN THIS LAWSUIT?

If you do not want to be part of the class action, you must complete the online form at www.BIMclassaction.com. If you do not have access to the internet, please contact Ulla Herlev at Branch MacMaster LLP. You must complete the online form by no later than January 18, 2012. NOTE: The opt out period is now closed. You cannot opt out at this time.

DO I NEED TO PAY ANYTHING? 

You will only need to pay legal fees if the action is successful in obtaining you a refund of some of the monies you paid.  Those legal fees will be paid directly from the refund you receive. You will not need to pay any legal fees out of your own pocket.

Any fee paid to the lawyers must be approved by the Court as being fair and reasonable. The fee agreement entered into by the representative plaintiff provides for the lawyers to be paid up to 1/3 of any amounts recovered or any benefit obtained from the class action. If and when this occurs, the lawyers will apply to Court for approval of that percentage or some lesser amount.

If the class action is unsuccessful at the common issues trial, you will not pay any legal fees.

WHO ARE THE LAWYERS FOR THE CLASS?

The lawyers for the class are:

BRANCH MACMASTER LLP
Barristers and Solicitors
1410 – 777 Hornby Street
Vancouver, BC  V6Z 1S4

HORDO BENNETT MOUNTEER LLP
Barristers and Solicitors
1400 – 128 West Pender St.
Vancouver, BC  V6B 1R8

Mark Cuzzetto (the representative plaintiff) has been appointed by the Court to instruct the lawyers for the common issues stage. The lawyers must act in the interest of all class members.

HOW DO I FIND OUT ABOUT DEVELOPMENTS?

For updates or questions please check this site. Alternatively, you can contact Ulla Herlev of Branch MacMaster LLP:

Ulla Herlev, Paralegal
Email: uherlev@branmac.com
Tel:(604) 654-2964
Fax:(604) 684-3429

This notice has been authorized by the Federal Court of Canada.

COURT DOCUMENTS

Statement of Claim - May 4, 2010 (PDF)

Order Certifying the Action - November 10, 2011 (PDF)

 

November 8, 2011:

On November 9, 2011, a hearing will be held in Federal Court to decide if the action can be certified as a class action. Check back after November 9, 2011, for more details.

 

May 5, 2010:

On May 4, 2010, Branch MacMaster filed a proposed class action in the Federal Court of Canada against Business in Motion Corporation, Alan Kippax and Ashif Mohamed. The lawsuit is brought pursuant to the Competition Act, which prohibits pyramid schemes and restricts what can be said to prospective participants of a multi-level marketing plan.

The Plainitff alleges that the defendants established, promoted and operated an illegal pyramid scheme through the operation of “BIM Corporation”, and further, that they made certain prohibited representations about compensation, or allowed those representations to be made to prospective participants of “BIM Corporation”.  The Plaintiff alleges that he suffered damages as a result of these actions.

The lawsuit is brought on behalf of a proposed Class of all persons in Canada who purchased a "Perpetual Motion Product" from  BIM Corporation.

If you suffered any damages as a result of your participation in “BIM Corporation”, or would like to be included in our database of potential claimants, please  complete the  Questionnaire below. Alternatively, you can download a printable version here, and either mail, email, or fax it to our paralegal Ulla Herlev, at the following address:

Ulla Herlev
Branch MacMaster LLP
1410 - 777 Hornby Street
Vancouver, BC V6Z 1S4
Fax(604) 684-3429
Email: uherlev@branmac.com

If you have any other questions, or you are unable to access or obtain the Questionnaire from this page, please contact Ms. Herlev at (604) 654-2964. Please note that submitting your name to our database of claimants or completing a Questionnaire at this stage of the proceedings does not create a solicitor-client relationship with Branch MacMaster. However, this allows us to know that you are interested in participating in this proposed class action, and to provide further information to you if the action is allowed to proceed as a class action.

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