Manufacturer breached Farm Implements Act by unreasonably withholding renewal of dealer agreement without proper notice.
The appellant, a farm implement dealer, appealed the non-renewal of its dealer agreement by the respondent manufacturer.
The Tribunal found that the respondent breached the Farm Implements Act and Ontario Regulation 123/06 by failing to provide the required written notice with full reasons and an opportunity to cure before deciding not to renew the agreement.
The Tribunal determined that the regulation applied retrospectively to the existing contract, removing the respondent's unfettered right to not renew.
The Tribunal awarded the appellant damages for loss of profits based on a two-year reasonable notice period and for obsolete assets, totaling $139,846 plus pre-judgment interest.
Chesterman Farm Equipment Inc. v. CNH Canada Ltd., 2014 ONAFRAAT 7
