On December 3, 2019, Ken McEwan, Q.C., Samantha Chang, and Will Stransky successfully opposed an application for an interlocutory injunction and obtained costs of the application payable in any event of the cause.
The dispute involved two mining companies which had entered into a confidentiality and standstill agreement in contemplation of a potential plan of arrangement, which was subsequently terminated by the defendant. The plaintiff sought an interim and interlocutory injunction restraining the defendant from completing a share purchase agreement to acquire approximately 30% of the plaintiff’s outstanding shares, on the basis that the transaction was contrary to the standstill agreement.
In dismissing the application, the court rejected the plaintiff’s submission that an applicant is not required to prove irreparable harm where the injunction is sought to prevent the breach of a negative covenant, such as a standstill provision and agreed with the defendant that the plaintiff had failed to provide evidence of irreparable harm beyond bald assertion and speculation. The court further concluded that the balance of convenience favoured the defendant, particularly because the evidence before the court raised doubts about the plaintiff’s ability to satisfy an undertaking to abide by an order for damages. The court dismissed the application and awarded costs to the defendant in any event of the cause. See Reasons for Judgment here.