TransactionsCassels Brock Successful at Supreme Court of Canada in MDG Kingston Inc. v. MDG Computers Canada Inc.Published: 06/02/2010 Eunice Machado and Sarah Jones successfully represented the respondent at the Supreme Court of Canada thereby upholding the decision of the Ontario Court of Appeal in MDG Kingston Inc. et al v. MDG Computers Canada Inc. et al 92 O.R. (3d) 4 (C.A.). The applicant franchisee, MDG Kingston Inc., motioned for leave to appeal the judgment of the Ontario Court of Appeal and requested an extension of time to serve and file the application for leave to appeal. The motion for extension of time was dismissed with costs. Furthermore, the Supreme Court held that had even if the motion for an extension of time had been granted, the application for leave to appeal would have been dismissed. The respondent is a corporate franchisor of computers and televisions with 29 Canadian retail franchise stores. The applicant was a corporate franchisee of MDG Canada. The relationship lasted seven years under two franchise agreements. Relying on s. 6(2) of the Ontario Arthur Wishart Act (Franchise Disclosure), the franchisee rescinded the second agreement within two years of signing it because the franchisor did not deliver a disclosure document required under s. 5 of the Act. The franchisee claimed rescission of the second agreement, as well as damages in respect of both agreements. The franchisor's motion for a stay of the action based on the arbitration clauses contained in both agreements was dismissed. The franchisee's cross-motion for rescission of the second agreement was granted and a trial on the issue of damages was directed. The Ontario Court of Appeal allowed the appeal: the summary judgment was set aside and the action was stayed. The Supreme Court of Canada has dismissed any further appeal of the Court of Appeal's decision. Eunice Machado is a Partner in the firm's Franchise Group. |