J. Binavince

The moving party sought an interlocutory injunction restraining the respondents from dealing with inventory allegedly belonging to a partnership pending resolution of an application seeking dissolution of the partnership, an accounting, and damages.

The court applied the three-part test for interlocutory injunctions from RJR MacDonald Inc. v. Canada and found that although there was a serious issue to be tried regarding whether a partnership existed and whether certain inventory constituted partnership property, the moving party failed to establish irreparable harm.

Evidence showed that alternative financing remained available and that the retail business continued operating.

The balance of convenience favoured the respondent, who relied on the inventory to operate an online business and service debts.

The motion was dismissed, subject to terms preserving inventory management, accounting obligations, and monthly payments toward indebtedness.

At a Commercial List case conference, the court addressed procedural issues relating to documentary production, privilege waiver, and the scheduling of discoveries.

The plaintiffs had expressed a desire to bring a motion to strike certain counterclaims, while certain defendants contemplated a motion for a further and better affidavit of documents.

The court declined to schedule those motions, directing instead that the matters be addressed through examinations for discovery and cooperative document production.

Counsel were directed to resolve production issues, exchange documents, and establish a protocol for property inspections to facilitate an expert valuation report.