An application was brought by Waterloo Brewing Ltd to seek payment of fees from MXM Beverages for breach of agreement. MXM Beverages claimed the agreement had been terminated via written notice and opposed the relief sought by Waterloo Brewing by way of an application. MXM Beverages requested for the application be converted to an action to evaluate conduct and enforceability of the penalty clause in the agreement.
Justice J.S. Shin Doi determined that the relief sought by way of an application by Waterloo Brewing was not appropriate and needed to be converted into an action and proceed to trial as there were issues to be determined, material facts in dispute and discoveries were required. The full reasons for the judgment can be found here: Waterloo Brewing Ltd. v. MXM Beverages Ltd. – ONSC.