Key Aspects of the Judgment:

• Context: The litigation involves four franchisees (Applicants) who contested arbitration awards following Sundial Growers Inc's acquisition of Spirit Leaf and Alcanna. This acquisition introduced direct competition from Value Buds stores in the franchisees' territories, leading to disputes over the breach of franchise agreements.

• Primary Legal Issues:

  • Franchise agreement compliance by Sundial, especially whether its acquisitions breached any contractual obligations to the franchisees.
  • Whether Sundial was effectively bound by Spirit Leaf's franchise agreements.

• Court Findings:

  • Franchise Agreement and Good Faith: The court affirmed the arbitrator's decision that Sundial’s actions did not breach the franchise agreements. It also confirmed the limited application of good faith breaches, leading to nominal damage awards.
  • Corporate Structure: The court declined to pierce the corporate veil between Sundial and Spirit Leaf, indicating proper corporate separateness.
  • Damages and Costs: Nominal damages of $1,000 were awarded to the franchisees for breaches of good faith. The court did not specify the total costs but mentioned the arbitrator’s discretion to award reasonable costs as deemed just.

• Conclusion: The appeal was dismissed, upholding the arbitrator's findings and interpretation of legal principles involved in franchise operations and corporate acquisitions.