Matthew R. Law

The plaintiffs sought an interlocutory injunction to restrain the defendant from selling an independent medical examinations business to a competitor.

The plaintiffs argued the defendant breached a contractual duty of good faith by failing to negotiate a sale with them and by not offering a right to match the competitor's offer.

The court dismissed the motion, finding no serious issue to be tried as the defendant had fulfilled its limited obligation to offer a first right of negotiation and was not required to provide a right to match.

The court also found the balance of convenience favoured the defendants.

Following dismissal of a motion by the Crown to strike a negligence and negligent misrepresentation claim arising from a government procurement process for school bus services, the court determined the appropriate costs award.

The plaintiffs sought substantial indemnity costs while the Crown argued for a lower partial indemnity award.

Applying Rule 57 of the Rules of Civil Procedure and the fairness principles from Boucher, the court held that the motion, although unsuccessful, was not wholly devoid of merit and therefore did not justify substantial indemnity costs.

The court also rejected the Crown’s submission that HST should not be included in a costs award against it.

Partial indemnity costs of $39,897 inclusive of disbursements and HST were awarded to the plaintiffs.