The applicant, Parkland Corporation, sought an interlocutory injunction to prevent the respondent Dealer from selling non-Parkland supplied motor fuel from a gas station, in breach of a long-term exclusive supply contract.
The court granted the injunction, finding that Parkland demonstrated a strong prima facie case of breach of a negative covenant, which gives rise to a presumption of irreparable harm.
The balance of convenience strongly favored Parkland, as the Dealer's actions appeared pre-meditated and in bad faith, and Parkland would suffer unquantifiable harm to its commercial control, intellectual property, and business model.
The Dealer's various defenses, including an alleged oral agreement, lack of independent legal advice, and corporate oppression, were dismissed as unlikely to succeed.