Master SMART

7.3: Summary Judgment (Application and decision)

Case Summary

The Plaintiffs sued the Defendants, including Wendy’s Restaurants of Canada Inc. (“Wendy’s”), alleging a number of causes action related to the termination of a franchise agreement. The Plaintiff franchisees fell behind in payments owed to Wendy’s and the Canada Revenue Agency. Wendy’s initially entered into a forbearance agreement with the Plaintiff franchisees, but later elected to terminate the franchise agreement. Around the same time, the Plaintiff franchisees received an offer to purchase the franchise, which fell through as a result of the termination of the franchise agreement. Wendy’s counterclaimed for outstanding debts owed by the franchisees.

Master Smart noted that the test for Summary Judgment included whether, upon review of the Affidavits, there is sufficient evidence before the Court to determine the issues in the Claim on the merits. Master Smart noted that the parties did not dispute the facts, and no viva voce testimony was necessary. Master Smart noted that the absence of relevant factual disputes between the parties permitted him to decide the claim on its merits.

Master Smart held that the termination of the franchise agreement by Wendy’s was allowed. Master Smart further found that the causes of action of unjust enrichment, intentional interference with economic relations, and breach of the duties of fair dealing and good faith were not made out. Consequently, Summary Dismissal of the Plaintiff’s claims was warranted. Master Smart further held that the debts claimed by Wendy’s under the franchise agreement were valid and owing, and granted Judgment on Wendy’s Counterclaim.

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