In documents filed with the
If the court rules in Cineworld's favour,
Cineplex, which refused to comment on this matter because it is before the court, said a relinquishment of those funds should be ordered to "prevent Cineworld from profiting through its wrongdoing, while Cineplex is left without a sufficient remedy."
Cineworld said in a statement that it does not agree with the cross appeal, but will respond to it and not pay any damages while the matter is ongoing.
Cineplex's filing was made in response to an appeal Cineworld made earlier this month that claimed
The case Conway presided over stemmed from Cineworld's decision to terminate a deal to buy Cineplex, when the sale was about to close and the COVID-19 pandemic was in full swing.
Cineworld argued the terms of the deal allowed the company to call off the purchase because Cineplex deferred its accounts payable by at least 60 days, reduced spending to the "bare minimum" and stopped paying landlords, movie studios, film distributors and suppliers at the start of the pandemic.
In response, Cineplex called Cineworld's complaints "nothing more than a case of buyer's remorse."
Cineplex said the moves it made that angered Cineworld were part of a normal course of business for theatre companies during a pandemic and did not damage its reputation with landlords and studios.
On
Conway's decision and further appeals are being watched closely by the legal community because many believe they will reveal how judges will treat deals impacted by the pandemic that wind up in litigation.
The case is key for Cineplex and Cineworld because both have seen their coffers challenged as they have endured theatre shutdowns, reduced capacity measures and completed staff layoffs as public health officials and governments tried to quell the virus with closures.
This report by
Companies in this story: (TSX:CGX)
© 2022 The Canadian Press. All rights reserved., source