Loblaws forgets the human side of business – and pays.

FAILSometimes your breath can simply be taken away by the stupidity of a business’s actions.

This was the case for me when I first read that a subsidiary company of Loblaws had filed a statement of claim against the owner of a van which collided with one of its trucks — and against the driver of that van.

Here are some of the details and back story, thanks to sources including Wikipedia’s “Boys in Red” article:

  • January 12, 2008: an extended passenger van carrying the Bathurst high school boys’ basketball team was driving back to Bathurst, New Brunswick after playing a game in Moncton. Just after midnight on the 12th, the driver, coach Wayne Lord, lost control of the vehicle in freezing rain and snow and veered into the path of a tractor-trailer owned by Atlantic Wholesalers, a subsidiary of Loblaws. Loblaws is a $30-billion company with nearly 140,000 employees.
  • Seven members of the team were killed, as well as Lord’s wife, who also taught at Bathurst High School.
  • The accident (collision, says Tom of What the Lemur) made national news, and people around Atlantic Canada were especially moved by the tragedy. For example, one memorial group established on Facebook attracted nearly 9,000 members
  • Following the collision, 15-passenger vans were taken out of service in Nova Scotia, and there were multiple investigations into the accident by the RCMP, Transport Canada (pdf of report) and by the province of New Brunswick.
  • The investigations didn’t find a single overwhelming cause for the accident; however, the van had worn brakes and tires, while the driver was tired and weather conditions were poor. The RCMP did not lay criminal charges.
  • Some of the parents of those killed in the accident have continued to work for changes in policies and processes to make children safer, most prominently through the Van Angels web site.
  • On December 22, 2009, Atlantic Wholesalers and Loblaws filed a statement of claim against Lord and the company which owned the van. They were pursuing about $41,000 in damages to their truck, environmental remediation, as well as costs and legal fees.
  • The pending lawsuit was picked up by the media, starting with a radio report on Friday, January 9 — the second anniversary of the collision accident.
  • The outrage in media response was immediate, and I would wager that the response to Loblaws itself was equally loud and negative.
  • After a brief period of not responding to calls for comment, Loblaws withdrew the suit the same day the media attention hit, and issued a statement from the company’s president:

“We thoroughly apologize for the alarm and concern caused by the statement of claim. While it is normal legal practice to look for reimbursement from the parties deemed to be at fault , this decision was clearly made without consideration of the specifics of this accident. We would also like to thank all our customers that voiced their concern regarding our decision, allowing us to reconsider our actions.”

  • Now, according to CBC online, Loblaws is engaged in some damage control in New Brunswick, calling the mayor of Bathurst and seeking advice on what action the company could take to demonstrate its contrition.
Screengrab from cbc.ca

796 mostly anti-Loblaw comments on this CBC story

I don’t think Loblaws is an inherently evil company. And I don’t doubt that seeking reimbursement for damages is normal legal practice, as the company’s statement says. But there were serious miscalculations here. First, whoever made the decision to file the statement of claim likely thought more about process than about the human aspects of the tragedy. He or she or they forgot the human impact of this accident, which should have outweighed the damages.

The timing was beyond unfortunate. To do this so close to the anniversary of the accident was asking for trouble. But if you weren’t thinking of this as a human tragedy, you wouldn’t think of that.

The most serious miscalculation, was the inclusion of the van driver as an individual in the suit. I’d wager that a claim only against the company might have gone with far less, if any criticism. But when you file suit against a man who lost his wife and seven members of his basketball team in an accident, you can’t help but look like an insensitive bull, even if you’re ‘really’ filing suit against his insurance company.

It’s hard to think about the human factors when you’re part of a huge organization. But as Loblaws has learned, you ignore them at your peril.

Fail image: http://www.flickr.com/photos/chrisgriffith/ / CC BY 2.0

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One Response to “Loblaws forgets the human side of business – and pays.”

  • Charles A-M says:

    On semantics: “collision” and “accident” are not mutually exclusive terms; in terms of traffic incidents, the latter is a subset of the former.

    - RG>

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