Company could not disavow terms of letter then recover on same contract

Ontario civil | Civil Practice and Procedure | Summary judgment | Requirement to show no triable issue

Applicant power producer entered into agreement with respondent company, for energy project to take place in Barbados. Relationship between parties deteriorated. Company alleged that producer had repudiated letter of intent, regarding project. Producer disputed that breach had taken place, but accepted that contract was at end. Producer claimed amount of $2,000,000 due and payable from company. Producer sought declaratory relief as to amount owed, and judgment on amount. Producer also sought appointment of receiver of property and assets for company. Producer applied for above-noted relief. Application granted. Trial was not necessary to determine issues, which could be determined on record before court. Court had jurisdiction to hear application. There was no judicial estoppel. It was within court’s powers to appoint receiver. Company’s claim that final approval was obtained was not supported. Conversations took place, but no approval was signed or agreed upon. Having failed to obtain final approval, company was obligated to pay back $1.5M of $2M owing. Remaining payment of $500,000 was payable, based on terms of letter of intent. Company could not disavow terms of letter, then recover on same contract.

Potentia Renewables Inc. v. Deltro Electric Ltd. (2018), 2018 CarswellOnt 12310, 2018 ONSC 3437, T. McEwen J. (Ont. S.C.J.).

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