Exclusivity Clauses in Commercial Leases: Battle over the Types of Fitness Centres Permitted on the Leased Premises

By Sarah D. PinsonnaultIn 403-9971 Canada inc. c. Place Lasalle Property Corporation, 2014 QCCS 3153, the Plaintiff is a company that operates a “Curves” franchise in the shopping centre ran by Place Lasalle Property Corporation (“Defendant Landlord”). For those of you who don’t know, Curves is a ladies-only fitness and weight loss centre. It soon became known to the Plaintiff that Les Entreprises Éngergie Cardio Inc. (“Defendant Tenant”) signed a lease with the Defendant Landlord, whereby the Defendant Tenant would open another fitness centre in the same shopping centre. This new fitness facility, called “Econofitness”, is described as a “no-frills” gym that admits both men and women. As a result, the Plaintiff, in claiming an alleged contravention of an exclusivity clause found in its lease, sought a provisional injunction against the Defendant Landlord to prevent the latter from renting to the Defendant Tenant. AnalysisThe Court had to analyse, in accordance with the criteria… Lire la suite

Clause d’exclusivité et jeux vidéo

Par Pierre-Luc BeauchesneGowling Lafleur Henderson s.e.n.c.r.l., s.r.l.Dans Riocan Holdings (Quebec) inc. c. Summum Nutrition inc. (EZ Games) (2013 QCCA 2224), la Cour a rejeté l’appel du locateur confirmant que celui-ci avai violé l’entente d’exclusivité consentie à son locataire qui prohibait l’ouverture d’une entreprise exploitant comme activité principale un commerce pour l’achat, la vente et l’échange de jeux vidéo. La Cour conclut également que la juge de première instance était justifiée d’ordonner au locateur de prendre les mesures nécessaires pour obtenir la fermeture de la boutique compétitrice de la mise cause dans un délai imparti et, à défaut pour le locateur de s’exécuter, d’ordonner à la mise en cause de procéder elle-même à cette fermeture.   Les faitsPour les faits, nous nous référons à la décision de la Cour Supérieure dans Summum Nutrition inc. (EZ Games) c. Riocan Holdings (Quebec) inc. (2013 QCCS 35).Le 20 octobre 2011, Summum Nutrition inc. (ci-après… Lire la suite

The Dangers of Drafting Vague and Ambiguous Exclusivity Clauses

Par Sarah D. PinsonnaultRevenu Québec Newad Media inc. c. Red Cat Mediainc. (2013 QCCA 129) consists of an appeal from a Superior Court decision thatrefused to issue a permanent injunction to force the Respondents to remove allof their advertising from the establishments where the Appellant held licenseagreements that contained exclusivity clauses. The trial judge, Justice KevinDowns, concluded that these clauses were ambiguous and could not prevent otheradvertising from being displayed in these establishments.   The Appellant, Newad Media Inc., is an agency that pays a certain fee, dependingon the type of advertisement, to obtain the right to display the latter invarious establishments, such as school and resto-bars. The Respondents, Martin Poitras and his three companies: Red Cat Media,Rouge Campus and Rouge Resto Bar (formerly Chapter 66), conducted the same typeof business. However, their advertisements were displayed on large vinylbanners measuring 5 x 7 feet;whereas the Appellant advertised on mini steel-framed… Lire la suite