The plaintiffs, standardbred horse breeders, sued Ontario and the Ontario Lottery and Gaming Corporation (OLG) for breach of contract, negligence, and negligent misrepresentation following the cancellation of the Slots at Racetrack Program (SARP).
The defendants moved for summary judgment to dismiss the action, and the plaintiffs cross-moved for summary judgment on liability.
The court held that the Crown Liability and Proceedings Act (CLPA) retroactively extinguished the plaintiffs' tort claims because the cancellation of SARP was a policy decision made in good faith.
However, the court found that the 1998 Letter of Intent establishing SARP was a binding contract.
Applying the principled exception to the doctrine of privity, the court held that the plaintiffs had standing to enforce the contract.
The court granted summary judgment to the plaintiffs against Ontario for breach of contract, finding that Ontario breached an implied term to provide reasonable notice of termination.
The action against OLG was dismissed.
