In 1658410 Ontario Inc. (Advance Repairs & Maintenance) v. Great Gulf (Dundas) Ltd., 2018 ONSC 4537, Jonathan Fine of Fine & Deo acted for a condominium corporation. This case was about the termination of a cleaning contract. The contract contained a provision permitting termination on 30-days’ notice without cause, and immediately with cause.
The condominium corporation purported to terminate the contract with cause but, for economic reasons because only $5,940.00 was stake, the condominium corporation conceded that it was liable for that amount, and for a further $5,134.06 for a total of $11,074.06.
The cleaning company’s owner and management were very angry that the contract had been terminated and attempted to intimidate the condo corporation into making a substantial settlement. Accordingly, the cleaning company claimed an additional $1,900,000 for such things as loss of reputation, lost time and effort, hiring one of its employees, lost or damaged equipment and defamation.
The defence of these allegations was very costly because Fine & Deo had to dissect and negate each allegation, not just through affidavit evidence but also through cross-examination.
The judge rejected all of the $1,900,000 claims. But worse yet for the cleaning company, the judge awarded the condominium corporation $60,000 on costs.
The cleaning company was clearly the big loser. Even though it won $11,074.06, it had to pay its lawyer and it has to pay the condominium corporation $60,000. Clearly, its attempt to intimidate failed. It should have taken the money and ran.