Leading Canadian
FRANCHISE & BUSINESS LAW FIRM

Country Style (Sirianni)

Full Case Name: Sirianni v. Country Style (2012)

This is an influential Ontario court decision under the Arthur Wishart Act (Franchise Disclosure), 2000, on the issue of bad faith conduct. It is the first Ontario decision dealing with franchise disclosure and rescission rights that are intertwined with a franchisor’s bad-faith conduct in a prolonged renewal process.

The franchisees renewed the franchise agreement, unaware that the landlord and Country Style were involved in a significant dispute about the renewal of the head lease, and that Country Style had agreed with the landlord to terminate the lease.

The franchisor, Country Style, concealed from the franchisee the fact that the lease of the restaurant would not be renewed. The franchisee discovered this fact only in the course of the litigation process.

After hearing a full trial, the court held for the first time that failure to disclose material facts may also, in an extreme case such as here, constitute bad faith conduct. This entitled the franchisee to not only damages for losses, but also for rare punitive damages.

The decision was made by Madam Justice Mesbur, an experienced commercial judge on the specialized Commercial List. In 2013, the Court of Appeal for Ontario dismissed Country Style’s appeal of the trial decision.

The case is influential in how lawyers and the courts analyze bad faith conduct in an ongoing relationship between a franchisor and franchisee.

Back

Franchise Law Blog

Ontario court stays action in favour of...

Posted by | 13 July 2021

By: Ben Hanuka, Law Works PC In Kore Meals LLC v. Read More

Franchisor’s fundamental system...

Posted by | 6 July 2021

By Ben Hanuka, Law Works This article was originally published in The Lawyer’s Daily as a two-part series on June 9 and 11, 2021. Read More

Cannabis retail franchising –...

Posted by | 6 July 2021

By: Ben Hanuka, Law Works This article was originally published in The Lawyer’s Daily as a two-part series on May 25 and 27, 2021. Read More

View All

What’s New

The July 2021 edition of the L...

Each month, Law Works publishes a newsletter sharing our franchise law and litigation news, analysis articles, case commentaries, and more. Read More

Ben Hanuka listed in Lexpert S...

We are pleased to announce that Ben Hanuka was listed in the Lexpert Special Edition: Litigation 2020. Read More

Ben Hanuka to Moderate Roundta...

We are pleased to announce that Ben Hanuka will be moderating a roundtable discussion at Ontario Bar Association’s upcoming annual franchise law conference on November... Read More

View All