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ARTICLE · 05 JANUARY 2021

Court Prohibits Competing Restaurant Business From Opening

Gardiner Roberts LLP
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Many will be grateful to see 2020 in the rearview mirror, none more so than restaurant owners. With restaurants scrambling to re-focus on take-out service, perhaps the last thing an owner needs...

CanadaLitigation, Mediation & Arbitration
James R.G. Cook
James R.G. Cook
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Many will be grateful to see 2020 in the rearview mirror, none more so than restaurant owners. With restaurants scrambling to re-focus on take-out service, perhaps the last thing an owner needs is for one of its owners to walk away with an intention to establish a competing “ghost kitchen” that offers similar foods just around the corner. Ghost kitchens are a recent phenomenon. Instead of offering dine-in services, they only serve customers through delivery services such as UberEats or Skip The Dishes.

This is precisely what happened in 11766554 Canada Inc. v. Tingz Restaurant Bar LTD.,  2020 ONSC 7986 (CanLII), and which resulted in Justice R. Smith granting an interlocutory injunction to the applicant, Tingz Restaurant Bar LTD (“Tingz”), to prohibit its former director and chef, Jae-Anthony Dougan-Holder, from opening a ghost kitchen serving similar cuisine one block away from Tingz's existing location in Ottawa's downtown core.

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