The plaintiffs, a franchisor group ("Tiny Hoppers"), brought a motion for summary judgment seeking repayment of $500,000 and absolution from further payments, alleging the defendants (franchisees, "Dino & Kidz") breached a settlement agreement by failing to disassociate from the brand and making defamatory statements.
The defendants brought a cross-motion for summary judgment seeking dismissal of the plaintiffs' claim and payment of $224,000, the balance owing under the settlement.
The court found that the defendants had taken reasonable steps to disassociate themselves and had not made defamatory or disparaging statements.
Consequently, the plaintiffs' motion was dismissed, and the defendants' counterclaim for the outstanding payment was granted.