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:
- 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.
- Met the tripartite test for an interlocutory injunction:
- 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.