Burlington pub owner taking The Beer Store “monopoly” to court

A Burlington pub owner has launched a $1.4 billion dollar potential class action lawsuit against the LCBO and The Beer Store after a “secret deal” to limit competition was revealed by the Toronto Star.

David Hughes, who owns The Poacher, a fixture in downtown Burlington is the man behind the legal action.

His lawyer, Ron Podolny spoke Sunday to CHCH’s Brittany Gogo on behalf of his client.

“He feels that customers and businesses like his have been victimized.”

The alleged “secret deal” was made 14 years ago. It gives the foreign owned The Beer Store a virtual monopoly on selling beer in Ontario, by limiting the LCBO from competing on products, pricing and territory.

Poldolny says the agreement divides up the market and affects the price of beer. Something that has impacted Hughes, who’s owned his pub for 29 years.

Ontario Finance Minister Charles Sousa says he’s looking into the deal and could decide to scrap it.

Restaurants Canada, which represents about $30,000 food service businesses has asked the Federal Competition Bureau to investigate

The allegations have not been proven in court.

Class action lawsuits need to be certified or given a green light by a judge. Which is exactly the next step for Hughes and his claim.

He declined to speak to CHCH News on camera.