Johnathon Silver

Parkland Fuel Corporation sought $88,282 in costs after successfully defending an application brought by Quickie Convenience Stores Corp. Quickie argued for no costs or a 50% reduction, citing divided success on legal issues and Parkland's late presentation of jurisdictional arguments.

The court found Parkland largely successful in the application's overall outcome, but acknowledged Quickie's partial success on one issue (compliance with first notice and offer obligations) and considered Parkland's delayed jurisdictional arguments.

Ultimately, the court awarded Parkland $52,900 in partial indemnity costs, representing a 20% reduction from their claimed amount.

The applicant, Quickie Convenience Stores Corp., sought a declaration that the respondent, Parkland Fuel Corporation, unreasonably withheld consent to the assignment of various leases, subleases, and contracts to a prospective purchaser of Quickie's assets.

Quickie also sought a declaration releasing it from right of first offer obligations.

The court found that Parkland unreasonably withheld consent for the Ontario leases under s. 23(1) of the Commercial Tenancy Act, as it attempted to use the consent requirement to obtain benefits exceeding its contractual rights.

However, the court dismissed the application overall because it lacked jurisdiction over the Quebec leases governed by Quebec law and forum selection clauses, and the CTA did not apply to the credit/debit card contracts.

The court also declined to grant the requested release of obligations.