William Bradley Hanna

The applicant beer distributor sought an interlocutory injunction preventing the respondent brewer from terminating a long-standing licence agreement granting exclusive Canadian distribution rights for certain beer brands.

The respondent issued a termination notice based on the applicant’s failure to meet contractual volume targets after an amendment to the licence agreement terminated automatically when industry regulatory changes did not occur.

The court held that serious issues existed regarding the continued effect of a contractual waiver of termination rights and whether the respondent was required to engage in good faith negotiations before exercising termination rights.

The court also found that the applicant would suffer irreparable harm through disruption of its product portfolio, damage to customer relationships, and potential harm to brand equity.

Balancing the parties’ respective harms and favouring preservation of the status quo pending trial, the court granted the interlocutory injunction.

Following the dismissal of an action alleging misrepresentations relating to the establishment of a Mitsubishi dealership, the court determined the appropriate costs award.

The defendants sought partial indemnity costs exceeding $325,000 after successfully obtaining summary judgment dismissing the claim as statute-barred under the Limitations Act and lacking evidentiary merit.

The court considered the factors under Rule 57.01 of the Rules of Civil Procedure and the principle of reasonableness, including access to justice concerns discussed in appellate authority.

While the defendants’ legal work was substantial and effective, certain disbursements and the overall magnitude of the claim were considered excessive.

The court therefore reduced the claimed amount and fixed costs at $150,000 inclusive of taxes and disbursements.