The recent Ontario Superior Court of Justice decision in 2337310 Ontario Inc. v. 2264145 Ontario Inc., 2014 ONSC 4370, addressed a partial summary judgment motion brought by the franchisee of a cafe seeking a declaration that it was entitled to exercise its right of rescission under the Arthur Wishart Act (Franchise Disclosure), 2000 (“the Act”). The franchisee sought to rescind the franchise agreement approximately six months after entering into the agreement by arguing that the disclosure document provided by the franchisor was so deficient that it amounted to receving no disclosure at all. In contrast, the franchisor argued that the franchisee was provided with disclosure as required under the Act, and the franchisee was simply attempting to resile from a bona fide transaction due to its own incompetence and inability to operate the business successfully. The Court found a number of deficiencies in the disclosure provided by the franchisor, including failure to provide: (1) … Read More
Court of Appeal Defines Key Terms Relating to Injunctions
In 1711811 Ontario Ltd. (AdLine) v. Buckley Insurance Brokers Ltd. a dispute arose between the parties regarding access to a laneway, resulting in three Court endorsements referring to “interim”, “interlocutory”, “permanent”, and “mandatory” injunctive relief. The Court of Appeal took the opportunity to clarify these key terms relating to injunctions: Interim injunction: Pre-trial relief, which may be sought with or without notice to the other party. Argument in an interim injunction proceeding is usually brief. The injunction is typically for a short, defined period of time. Interlocutory injunction: Pre-trial relief, again restraining a party for a limited period of time, but often for longer than an interim injunction (such as until trial or other disposition of the action). Argument in an interlocutory injunction proceeding is typically lengthier than in an interim injunction proceeding, and involves both parties. The test for an interlocutory injunction is set out in in RJR-MacDonald, and recognizes that the Court does not have the ability … Read More