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 of Appeal in Lettieri...

Posted by | 16 November 2017

Author: Anthony Pugh, J.D., Law Works P.C. Editor: Ben Hanuka On October 25, 2017, the Ontario Court of Appeal released its judgment in 2122994 Ontario Inc. v. Read More

Franchisees’ right to associate: The...

Posted by | 10 November 2017

This article, written by Ben Hanuka, was originally published by The Lawyer’s Daily on November 8, 2017. Click here to view the published article. Read More

Ontario Court of Appeal Continues to...

Posted by | 20 October 2017

Author: Evan Ivkovic, J.D., Law Works P.C. Read More

View All

What’s New

Article in The Lawyer’s Dail...

We are pleased to announce that The Lawyer’s Daily published an article by Ben Hanuka on November 8, 2017, titled “Franchisees’ right to associate: The good, the bad... Read More

Article in The Lawyer’s Dail...

We are pleased to announce that The Lawyer’s Daily published an article by Ben Hanuka on October 11, 2017, titled “The Reality of Franchise Rescission Summary Judgment... Read More

Ben Hanuka gives expert commen...

We are pleased to announce that the Globe and Mail sought our firm’s expert opinion about the intensifying fight in the Tim Horton’s franchise. Read More

View All

Request Information

Please Fill out this form to request information

*By filling out this form you agree to be contacted by Law Works to receive emails pertaining to requested information. You can unsubscribe at any time, simply contact us or reply "unsubscribe" to our emails.

Law Works Lawyers | 855-978-5293|tel:855-978-5293 | 80 Kincort Street, 2nd Floor, Toronto, ON M6M 5G1 | https://www.lawworks.ca

Please select the STAR and click the SUBMIT button

rolling
 Please wait...