The appellant hotel owner appealed a summary judgment decision awarding the respondent hotel manager an early termination fee of $1,026,652.44 plus costs.
The owner had terminated a 10-year hotel management agreement after approximately 10 months, claiming cause based on alleged breaches by the manager.
The Court of Appeal upheld the summary judgment, finding no genuine issue requiring trial.
The court rejected the owner's arguments regarding alleged breaches concerning an interim manager's work visa status, the appointment of an unqualified general manager, the manager's failure to timely terminate the general manager, and alleged budget preparation violations.
The court found that the owner had approved the general manager's hiring, that the manager had cured the termination issue within the required 30-day period, and that the owner could not rely on its own refusal to approve the annual plan as grounds for termination for cause.