The plaintiff, a distributor, sued the defendant, a manufacturer of adult sex toys, for breach of three purported exclusive distribution agreements.
The court dismissed the plaintiff's claims, finding that the parties were merely negotiating and had never reached a binding consensus ad idem on the essential terms.
The defendant counterclaimed for defamation and other torts based on a complaint the plaintiff's principal sent to Health Canada alleging safety defects in the defendant's products.
The court granted the counterclaim for defamation and injurious falsehood, finding the statements were false, defamatory, and made with the intent to harm the defendant's reputation and business.
The defendant was awarded $50,000 in general damages.
