The parties were involved in a long-standing dealership agreement that deteriorated over time.
The plaintiff originally obtained a consent interlocutory injunction preventing the defendant from terminating the agreement, which remained in place for nearly ten years without the matter proceeding to trial.
The defendant successfully moved to dissolve the injunction due to inordinate delay, but the plaintiff subsequently obtained a fresh interim injunction from a different judge after receiving a new termination notice.
On appeal, the Divisional Court upheld the dissolution of the original injunction, finding no reversible error.
However, the court allowed the defendant's appeal and set aside the fresh injunction, concluding that the motion judge made palpable and overriding errors and that the plaintiff failed to establish irreparable harm or that the balance of convenience favoured continuing the hostile business relationship.