Background:
Four Top Hospitality Group Ltd., Rajiv Khaneja, and Christopher Sparling sued Olde Towne Developments Ltd. and Aaron Usatch over the termination of a commercial lease for a restaurant. The plaintiffs alleged wrongful termination, breach of contract, and defamation. The defendants counterclaimed, alleging lease violations.
Legal Issues & Arguments:
- Breach of Contract: The plaintiffs argued the lease termination was invalid and breached the duty of good faith and honest performance. The court agreed, finding Olde Towne improperly terminated the lease.
- Tort Claims: The plaintiffs claimed the defendants induced a breach of contract and committed the unlawful means tort, but these claims were dismissed.
- Defamation: The court ruled in favor of Rajiv Khaneja and Christopher Sparling, holding Aaron Usatch liable for defamatory statements.
- Costs & Damages: The plaintiffs sought special costs, double costs under settlement rules, and an uplift in costs due to the complexity of the case.
Judgment & Award:
The court awarded:
- $450,000 in general damages and $100,000 in punitive damages for breach of contract.
- $25,000 each to Khaneja and Sparling for defamation.
- $9,000 refund of the damage deposit.
- Costs at Scale B with an uplift, plus double costs from August 10, 2023, onward.
- 90% of costs payable by Olde Towne; 10% by Usatch.
The total award in favor of the plaintiffs exceeded $609,000 plus costs and interest.