Court of Appeal

Decision Information

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                                NOVA SCOTIA COURT OF APPEAL

           Citation:  Sobeys Group Inc. v. Goodman Rosen Inc., 2003 NSCA 47

 

                                                                                                    Date:  20030403

                                                                                               Docket: CA 196428

                                                                                                   Registry:  Halifax

 

Between:

Sobeys Group Inc.

                                                                                                               Appellant

                                                             v.

 

Goodman Rosen Inc., a body corporate, in its capacity as Court-appointed Receiver for Norsyd Investments Inc., Shoppers Realty Inc., a body corporate, Shoppers Drug Mart Inc., a body corporate and M.C. LeBlanc Drugs Limited, a body corporate

 

                                                                                                            Respondent

                                                                                                                            

 

Judge:                            Freeman, J.A.

 

Application Heard:         April 3, 2003

 

Written Judgment:         April 25, 2003  (Orally rendered April 3, 2003)

 

Subject:       Application for stay; permanent injunction; irreparable harm

 


Summary:   The Supreme Court of Nova Scotia interpreted a clause in the appellant’s lease in North Sydney Mall as a negative covenant not to operate a drugstore in the leased premises and granted the respondent, representing the mall owner, a permanent injunction restraining the appellant from operating  the drug store it had opened November 18, 2002. An expedited hearing was set for June 2, 2003.  The appellant had bought the assets of an existing drug store and appointed the former owner manager of its pharmacy.  It recited obligations to its customers and the manager to  keep the pharmacy operating.  Asserting irreparable harm, it disclosed plans to reopen in alternate premises in the same mall if the stay was not granted and to move back to the present location if it won the appeal. 

 

Issue:          Had the appellant met the test for a stay: arguable issue, irreparable harm and balance of convenience?

 

Result:        The stay was granted.   The appellant’s grounds of appeal raised an arguable issue.  Given the shortness of the period before the appeal could be heard, the dislocation and inconvenience the appellant would suffer if a stay was refused and the appeal succeeded would amount to irreparable harm.  The respondent could be compensated in damages if the appeal was dismissed.  

 

 

 

 

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