Plaintiff’s refusal to complete agreement confirmed failure to mitigate damages

Ontario civil | Contracts

FRANCHISE AGREEMENTS

Plaintiff’s refusal to complete agreement confirmed failure to mitigate damages

Plaintiff franchisee claimed defendant franchisor failed to adequately disclose in writing details of franchisor’s plans and proposed renovation costs at time of renewal. Plaintiff refused to return to carry on business in usual fashion. Plaintiff claimed it suffered significant damages when defendant attempted to go ahead with renovations and allegedly terminated agreement before completion date. Defendant argued Arthur Wishart Act (Franchise Disclosure), 2000 (Ont.), had no application to renewal of franchise agreement. Defendant claimed original and renewal agreements set out plaintiff’s obligation to conduct extensive renovations at own cost when required by franchisor. Action was dismissed. Plaintiff understood with benefit of independent legal advice all of terms of original franchise agreement. There was no interruption of operation of franchisee’s business. Plaintiff was fully informed prior to entering original franchise agreement that franchise was in process of being renovated and cost was to be borne by franchisee under terms of agreement. There were no material changes that were to take place in renewal agreement as intention to proceed with renovations to plaintiff’s store and cost was already disclosed to plaintiff and included in original franchise agreement. Plaintiff led no evidence that defendant acted in bad faith towards plaintiff. Plaintiff’s refusal to return without any basis to complete agreement confirmed failure to mitigate damages.
1201059 Ontario Inc. v. Pizza Pizza Ltd. (Aug. 14, 2013, Ont. S.C.J., R.J. Nightingale J., File No. 11-24641) 231 A.C.W.S. (3d) 663.

Free newsletter

Our newsletter is FREE and keeps you up to date on all the developments in the Ontario legal community. Please enter your email address below to subscribe.

Recent articles & video

Imran Kamal told his story about addiction, hoping to encourage the legal profession to be more open

Ontario Court of Justice welcomes four new justices: Frank, Hanna, Harris, Marcon

Ont. Superior Court denies disability benefits due to lack of a causal link to 40-year-old accident

Ont. Superior Court dismisses individual's insurance claim but allows corporate claim to proceed

Ontario Superior Court rejects lawyer's request to intervene in fatal vehicle collision

Slip-and-fall on black ice is an 'accident' under Statutory Benefits Schedule: Ont. Superior Court

Most Read Articles

Imran Kamal told his story about addiction, hoping to encourage the legal profession to be more open

Ontario Superior Court rejects lawyer's request to intervene in fatal vehicle collision

Slip-and-fall on black ice is an 'accident' under Statutory Benefits Schedule: Ont. Superior Court

Ontario Court of Justice welcomes four new justices: Frank, Hanna, Harris, Marcon