Parkland Corporation v. 2700455 Ontario Inc.
Parkland Corporation
Law Firm / Organization
Not Specified
Lawyer(s)

B. Jones

2700455 Ontario Inc.
Law Firm / Organization
Not Specified
Lawyer(s)

B. Wilson

S. Bhangu

Lakhwinderpal Dhindsa
Law Firm / Organization
Not Specified
Paramathas Joseph
Law Firm / Organization
Not Specified
Muraleetharan Sivaguru
Law Firm / Organization
Not Specified

Key Facts:

  • Parties: Parkland Corporation (Applicant) vs. 2700455 Ontario Inc. and related individuals (Respondents).
  • Issue: Parkland sought an interlocutory injunction to stop 2700455 Ontario Inc. from selling fuel purchased from other suppliers, allegedly breaching their contract.
  • Contract: The agreement required 2700455 Ontario Inc. to sell only Esso-branded fuel supplied by Parkland.
  • Breach: In May 2024, the Respondents began selling non-Parkland fuel, escalating to Esso fuel from competitors by November 2024.

Legal Arguments:

  1. Applicant (Parkland):
    • Met the tripartite test for an interlocutory injunction:
      • Serious issue to be tried: Clear contractual violation.
      • Irreparable harm: Damage to its business model and potential unrecoverability of damages due to Respondents' financial instability.
      • Balance of convenience: Favored enforcing the contract to preserve market share and business operations.
    • Asserted the Respondents' actions risked encouraging similar breaches by other dealers.
  2. Respondents (2700455 Ontario Inc.):
    • Claimed Parkland lacked authorization to provide Esso branding and fuel, nullifying the contract.
    • Asserted no irreparable harm, as damages could be compensated through future revenue.
    • Opposed the injunction, arguing it would disrupt their business.

Court Decision:

  • Injunction Granted:
    • Serious issue to be tried: Strong prima facie evidence of breach.
    • Irreparable harm: Financial instability of Respondents and potential loss of market share for Parkland supported this claim.
    • Balance of convenience: Maintaining contractual obligations outweighed potential harm to Respondents.
  • Respondents were prohibited from selling non-Parkland-supplied fuel until the case is adjudicated.

Monetary awards/ Costs:

  • Written submissions were ordered, limited to three pages per party.
  • The document does not specify a total monetary award or damages granted at this stage.
Superior Court of Justice - Ontario
CV-24-00000170-0000
Corporate & commercial law
Applicant