Background
- In 2019, CCI and Veolia entered a 10-year subcontract agreement for services at Toronto's Disco waste management facility.
- An explosion occurred at the facility in January 2024, leading Veolia to terminate the employment of a CCI employee, Mr. Grafton. Subsequently, in May 2024, Veolia terminated the agreement with CCI, ending the employment of a second CCI employee, Mr. Jackson.
Claims by CCI
CCI sought:
- An interlocutory injunction to prevent Veolia from terminating the agreement and excluding CCI employees.
- Orders requiring Veolia to adhere to the agreement's procedures and pay all amounts owed under the agreement.
Court's Analysis and Decision
- Nature of Injunction: The court determined that the injunction sought by CCI was mandatory, requiring CCI to demonstrate a strong prima facie case rather than just a serious issue to be tried.
- Irreparable Harm: The court found that CCI did not demonstrate it would suffer irreparable harm if the injunction was not granted. Damages could be quantified if CCI won at trial.
- Balance of Convenience: The balance of convenience favored Veolia. Reinstating the agreement would require significant positive action and disrupt current operations, posing safety concerns.
- Outcome: The court dismissed CCI's motion for an injunction.
Costs
- CCI was ordered to pay Veolia's costs of $160,000.
Sealing Order
- A sealing order was granted for CCI’s financial statements and personal details of employees.
This case highlights the difficulty in obtaining mandatory injunctions in commercial disputes and emphasizes the importance of demonstrating irreparable harm and balancing convenience.
