In a judgment rendered by the Honourable Justice Morgan on July 19, 2021, Loopstra Nixon lawyers Christopher Lee and Wendy Ngai obtained a complete win for their client, Precise Auto Parts Ltd., a small one-year old Toronto auto parts company.
The Plaintiff, UAP Inc., sued against eight defendants. In this motion for injunctive relief, the Plaintiff, a subsidiary of a multi-billion dollar global auto parts company, sought to shut down Precise Auto’s sole business selling auto parts, alleging that it was competing with the Plaintiff’s business in contravention of non-compete obligations in an agreement Precise Auto never signed. The Court rejected all of the Plaintiff’s allegations, finding that Precise Auto was not a signatory to the non-competition agreement and that there was no conclusive evidence demonstrating a causal connection between Precise Auto’s business and the Plaintiff’s own loss of market share.
The Court also accepted our client’s argument that the moving party had failed to establish a strong prima facie case or that it will suffer irreparable harm. Further finding in favour of the Respondents on the issue of the balance of convenience, the Court dismissed the Plaintiff’s motion in its entirety, rendering justice for Loopstra Nixon’s client on this motion.