Northam Distributor Ltd. v Roman Hardware Inc.
Northam Distributor Ltd.
Law Firm / Organization
Not Specified
Lawyer(s)

Deepak Gautam

1057079 B.C. Ltd.
Law Firm / Organization
Not Specified
Lawyer(s)

Deepak Gautam

Roman Hardware Inc.
Law Firm / Organization
Harper Grey LLP
Dilpreet Singh Joura
Law Firm / Organization
Harper Grey LLP
Jasbir Singh Kochar
Law Firm / Organization
Harper Grey LLP

Background:
Northam Distributor Ltd. and 1057079 B.C. Ltd. (plaintiffs) sought an interlocutory injunction against Roman Hardware Inc., Dilpreet Singh Joura, and Jasbir Singh Kochar (defendants). The dispute arose from a Share Purchase Agreement (SPA), in which the defendants allegedly violated a non-competition clause by operating a competing business.

Legal Issues:
The court analyzed three key factors under RJR-MacDonald Inc. v. Canada:

  1. Serious Question to be Tried – The court found that the restrictive covenant's enforceability and the defendants’ alleged breach raised genuine legal questions.
  2. Irreparable Harm – The plaintiffs failed to show that they would suffer harm beyond monetary damages, weakening their argument for an injunction.
  3. Balance of Convenience – The court ruled in favor of the defendants, citing ambiguous contract terms, potential undue restrictions on business, and the plaintiffs’ two-year delay in seeking relief.

Outcome:
The application for an interlocutory injunction was dismissed. The court held that the restrictive covenant's enforceability required a full trial.

Costs Awarded:
The court awarded costs on Scale B to the defendants, meaning they were entitled to recover reasonable legal fees. No damages were awarded as the ruling only addressed the injunction request.

Final Decision:
The case remains unresolved regarding contract breaches, as the substantive claims will proceed to trial.

Supreme Court of British Columbia
S249622
Corporate & commercial law
Defendant