The franchisor defendants brought a motion for summary judgment seeking dismissal of a franchisee action and judgment on a counterclaim following termination of four franchise agreements without notice.
The franchisees alleged breaches including failure to provide notice and violation of the duty of fair dealing under the Arthur Wishart Act.
The court held the terminations were justified due to substantial defaults amounting to acts of bankruptcy and rejected arguments based on estoppel and statutory good faith.
The plaintiffs also failed to produce basic financial documentation capable of proving lost profits, rendering their damages claim unsustainable.
Summary judgment was granted dismissing the action, while the counterclaim was left for trial due to disputed facts.
