Extreme Toronto Sports Club v. Razor Management Inc.
Extreme Toronto Sports Club
Law Firm / Organization
Gowling WLG
Lawyer(s)

Jordan Diacur

Razor Management Inc.
Law Firm / Organization
Pyne Law Professional Corporation
Matthew Raizenne
Law Firm / Organization
Pyne Law Professional Corporation
2699677 Ontario Inc. c.o.b. Stadium Sports Leagues
Law Firm / Organization
Pyne Law Professional Corporation

Background:

  • Extreme Toronto Sports Club (Appellant) had three licence agreements with Razor Management Inc. (Respondent) to use sports fields for adult leagues.
  • Due to COVID-19, government restrictions prevented or limited field use. A dispute arose over who bore the financial burden.
  • The federal CECRA program reduced rent obligations, but the appellant initially refused to apply or make payments for April–July 2020.
  • In August, the appellant resumed payments, but still owed over $300,000. It later applied for CECRA with conditions.
  • A second shutdown in October 2020 restricted sports but left facilities open. Another closure followed in November.
  • In December, a new federal relief program was introduced, but the appellant again refused to apply.
  • The respondent terminated the licences in February 2021 for non-payment.

Procedural History:

  • The appellant sued for wrongful termination and breach of contract; the respondent counterclaimed for unpaid licence fees.
  • The Superior Court granted summary judgment for the respondent, finding the appellant was obligated to pay despite non-use.

Court of Appeal Decision:

  • The contracts required payment for allocated time, not conditional on use.
  • The motion judge correctly applied contractual interpretation principles from Sattva Capital Corp v. Creston Moly Corp.
  • No legal, palpable, or overriding errors were found.

Appeal dismissed; appellant to pay $15,000 in costs.

Court of Appeal for Ontario
COA-24-CV-0584
Civil litigation
$ 15,000
Respondent