The plaintiff, an Ontario wine agent, brought an action against the defendant, a New York-based wine distributor, for damages in lieu of reasonable notice following the unilateral termination of their 15-year unwritten agency relationship.
The defendant terminated the relationship without notice to consolidate its Canadian distribution with a single new agent.
The court found that the distributorship agreement was terminable only upon reasonable notice, rejecting the defendant's argument that no notice was required.
The court determined that a 15-month notice period was appropriate, considering the plaintiff's significant efforts in building the brand in Ontario, and awarded damages based on lost commissions and unpaid invoices.