Parkland Corporation sought an interlocutory injunction to prevent SRAA Inc. and 1064110 Ontario Ltd. from unilaterally terminating their gas station leases and subleases to re-lease the properties to a competitor selling Esso brand fuel.
The respondents argued the agreements were essentially fuel supply contracts and that they were operating at a loss.
The court found that the respondents deliberately breached their contracts and that Parkland would suffer irreparable harm from the loss of control over the sites.
The court granted the interlocutory injunctions, enforcing the leases and the negative covenants in the subleases pending a final determination.
