Howard Gerson

Parkland Corporation sought an interlocutory injunction to prevent SRAA Inc. and 1064110 Ontario Ltd. from unilaterally terminating their gas station leases and subleases to re-lease the properties to a competitor selling Esso brand fuel.

The respondents argued the agreements were essentially fuel supply contracts and that they were operating at a loss.

The court found that the respondents deliberately breached their contracts and that Parkland would suffer irreparable harm from the loss of control over the sites.

The court granted the interlocutory injunctions, enforcing the leases and the negative covenants in the subleases pending a final determination.

The appellants appealed a motion judge's decision dismissing their action as an impermissible collateral attack on a decision of the Deputy Director of Titles.

The Court of Appeal allowed the appeal, finding that the motion judge failed to address the appellants' request for an extension of time to appeal the Land Titles Decision.

The Court noted that one of the appellants had been acquitted of fraud in a related criminal trial, which contradicted the Deputy Director's findings, and that there were concerns about procedural fairness at the Land Titles hearing.

The action was reinstated to allow the appellants to bring a proper motion for an extension of time.