Lauren Francis Baker

The appellants, several Turtle Jack's restaurant franchisees, appealed a motion judge's order that set aside an Associate Judge's decision to add a new defendant (11554891 Canada Inc.) and allow amendments to their statement of claim regarding supplier contributions to an advertising fund.

The Court of Appeal dismissed the appeal, agreeing with the motion judge that adding the new party and allowing the amendments would constitute an abuse of process due to inordinate delay, the dubious nature of the claims, and the fact that the amendments introduced new, statute-barred claims.

The court also upheld the costs award against the appellants.

The plaintiff, Lightbox Enterprises Ltd., moved for interlocutory injunctive orders against the defendant, 2708227 Ontario Inc., concerning their business relationship involving retail cannabis stores.

Lightbox alleged breach of license and service agreements and misuse of confidential information and trademarks ("Dutch Love", "Hobo Cannabis"). 2708227 Ontario Inc. counter-claimed, asserting the relationship was a franchise governed by the Arthur Wishart Act and that Lightbox failed to provide disclosure, entitling 2708227 Ontario Inc. to rescind the agreements.

The court dismissed Lightbox's motion for injunctive relief, finding no contractual basis for the primary relief sought, insufficient evidence to establish a strong prima facie case for breach of confidence, no irreparable harm, and that the balance of convenience favored the defendant.