James David Bunting

Following the refusal of an interlocutory injunction sought by the landlord applicants to compel a hotel operator to continue operating a hotel under a particular brand, the court determined the issue of costs.

The applicants argued that an indemnity clause in a lease entitled them to full indemnity costs from a former tenant alleged to have breached the lease.

The court held that the indemnity clause did not permit the landlord to recover litigation costs from a prior tenant where the present tenant supported the motion and where the lease’s procedures regarding a change of operating name had not been followed.

Even if the clause applied, the court would decline to exercise its discretion to award costs to the applicants.

Costs were awarded instead to the successful respondent hotel operator.

Bell Canada brought an application to strike two arbitration proceedings commenced by Plan Group Inc. (PGI) and its predecessor partnership.

PGI brought a motion to stay the application in favour of arbitration.

The court found that the first arbitration was a nullity because it was commenced by a dissolved partnership that no longer existed.

The court also found that the second arbitration was statute-barred under the Limitations Act, 2002, as the arbitration agreement did not contain clear and express language contracting out of the statutory limitation period.

The court declined to stay the application, finding that the issues were questions of law appropriate for summary judgment under the Arbitration Act, 1991.

The application was granted and the motion to stay was dismissed.

The applicants sought an interlocutory injunction compelling a hotel operator to continue managing and branding a hotel under a particular brand pending determination of a permanent injunction application.

They argued the lease required continued operation of the hotel using the brand and associated operational infrastructure despite expiry of the hotel management agreement.

The court applied the RJR‑MacDonald test and held that the lease provisions did not clearly impose an obligation requiring the operator to continue providing the full operational benefits of the brand.

The alleged harm, primarily reduced participation rent and potential reputational impacts, was found to be quantifiable and compensable in damages.

The balance of convenience favoured the operator, which would otherwise be compelled to operate a business relationship it no longer wished to maintain.

The appellant appealed a decision declaring that the arbitration clause in its Alliance Agreement with the respondent did not require a party to file a notice of request to arbitrate with the Arbitration and Mediation Institute of Ontario to commence arbitration.

The Court of Appeal allowed the appeal, finding that the application judge erred in his interpretation of the arbitration clause.

The Court held that the standard of review for contractual interpretation in this case was correctness, and that the clear wording of the agreement required the arbitration to be conducted under the 'then-current rules' of the Institute, which mandated filing a notice with the Institute to commence proceedings.

The Court of Appeal dismissed the appeal and issued an endorsement on costs.

The respondents were collectively awarded costs of $15,000, inclusive of disbursements and GST, payable by the Confederation of National Trade Unions (CSN) and La Régie Des Rentes Du Québec.

The appellants, Confederation of National Trade Unions and La Régie Des Rentes Du Québec, appealed an order staying the obligation of Slater Steel to file an actuarial report and relieving the company and its directors from any resulting obligations.

The Court of Appeal dismissed the appeal, finding no error in the motion judge's reliance on evidence that further employer contributions were not due until the valuation report was filed.

The Court also noted that other parties had acted in reliance on the stay order.