Stephen Brown-Okruhlik

A court-appointed receiver sought an order compelling several service providers to remit commissions allegedly owed under license agreements following the receivership of a home services business formerly operating under a national retailer’s brand.

The respondents argued the receiver had repudiated the license agreements by shutting down the system that generated service leads and announcing it would not continue operations, thereby relieving them of contractual obligations.

The court held that the receiver’s conduct constituted repudiation of the agreements, which the respondents accepted.

As a result, the receiver could not enforce contractual payment obligations.

Claims based on unjust enrichment and quantum meruit were also rejected, particularly given the inequitable circumstances created by the receiver’s actions and the continued enforcement of stay provisions against the respondents.

Following the dismissal of an urgent anti-suit injunction application, the court determined the appropriate costs award.

The court found that the moving parties had manufactured urgency despite having months of advance notice of the foreign proceeding they sought to enjoin, and had delivered voluminous materials on extremely short notice, impairing the responding parties’ ability to respond.

The court concluded the litigation strategy was tactical and inconsistent with the Rules of Civil Procedure and principles of fairness.

As a result, the court awarded substantial indemnity costs to the successful responding parties.

The court fixed the costs award at $27,500 as fair and reasonable in the circumstances.