Do you need a small business lawyer to open a business in Toronto

One well-known lawsuit involving a restaurant in Toronto is the case of Fran’s Restaurant Inc. v. Harmsen and Associates Ltd. In 2008, Fran’s Restaurant, a popular diner chain, filed a lawsuit against Harmsen and Associates, a design firm, for alleged negligence in designing and building one of its locations in Toronto.

According to the lawsuit, Fran’s Restaurant hired Harmsen and Associates to design and construct a new restaurant location in the city, but the resulting building had several defects and deficiencies.

The lawsuit claimed the defects included an unstable floor, improperly installed plumbing, and inadequate ventilation. These issues allegedly caused several problems, including water leaks and mould growth, that forced the restaurant to close for some time, leading to significant financial losses.

Understanding Toronto Business Law: Key Insights

Fran’s Restaurant sued Harmsen and Associates for breach of contract, negligence, and breach of duty of care, seeking over $1.7 million in damages.

The case went to trial in 2014, and after several years of litigation, the court ruled in favour of Fran’s Restaurant, finding that Harmsen and Associates were indeed negligent in the design and construction of the restaurant. The court awarded Fran’s Restaurant more than $1.1 million in damages, including lost profits and repairs.

The Fran’s Restaurant case is an example of how a lawsuit can arise from alleged negligence in the design and construction of a business location.

It highlights the importance of ensuring that all contractors and professionals involved in a construction project, including architects and engineers, adhere to building codes and standards to avoid future legal disputes.

Small Business Lawsuits in Toronto

One high-profile lawsuit involving a gym in Toronto is Sutherland v. GoodLife Fitness Centres Inc. In 2016, a woman named Katherine Sutherland filed a lawsuit against GoodLife Fitness Centres, one of the largest gym chains in Canada.

She claimed that the company’s policy requiring women to wear sports bras while working out was discriminatory and violated her rights under the Ontario Human Rights Code.

Sutherland, a member of a GoodLife Fitness location in Ottawa, argued that the policy discriminated against women who, for religious or personal reasons, preferred clothing covering more of their bodies while exercising.

She claimed that the policy effectively excluded her from the gym and prevented her from exercising comfortably.

Why Every Toronto Business Needs a Dedicated Lawyer

The case went to trial in 2018, and after several days of hearings, the Human Rights Tribunal of Ontario ruled in favour of Sutherland. The tribunal found that the policy requiring women to wear sports bras constituted sex discrimination and was not justifiable under the Ontario Human Rights Code.

The tribunal ordered GoodLife Fitness to stop enforcing the policy and to pay Sutherland $2,000 in damages for injury to dignity, feelings, and self-respect.

The Sutherland v. GoodLife Fitness Centres case is an example of how a company’s policies and practices can give rise to legal disputes, including allegations of discrimination. It underscores the importance of ensuring that workplace policies and practices are inclusive and do not discriminate against any group of individuals.

As a result of this case, GoodLife Fitness revised its dress code policy and now allows members to wear a range of clothing options while exercising, including tank tops and T-shirts.

A lawsuit against a grocery store

One recent lawsuit involving a grocery store in Toronto is Suppiah v. Loblaws Inc. In 2019, a woman named Priya Suppiah filed a lawsuit against Loblaws, one of the largest grocery store chains in Canada, claiming that she had been racially profiled and wrongfully accused of theft at a store in Scarborough.

Suppiah, who is of Sri Lankan descent, alleged that she was shopping at the store when a security guard approached her and accused her of stealing a cake.

She denied the accusation and offered to show her receipt, but the security guard and a store manager insisted on searching her bag and purse. Suppiah claimed that the search was intrusive and humiliating and that she was subjected to racial profiling because of her ethnicity.

Toronto’s Vibrant Marketplace

The case went to trial in 2021, and after several days of hearings, the Ontario Superior Court of Justice ruled in favour of Suppiah. The court found that Loblaws had discriminated against Suppiah based on her race and had breached her privacy rights by conducting an unreasonable search. The court awarded Suppiah $20,000 in damages for pain and suffering and $10,000 in punitive damages.

The Suppiah v. Loblaws Inc. case is an example of how racial profiling and discrimination allegations can give rise to legal disputes, including claims for damages.

It underscores the importance of ensuring that businesses have policies and procedures in place to prevent discrimination and that employees are trained to interact with customers respectfully and non-discriminatorily.

In response to the case, Loblaws expressed disappointment in the court’s decision and reiterated its commitment to providing a welcoming and inclusive environment for all customers.

Shareholder Agreement

A shareholder agreement is very important in case there are future disputes between partners. If things go well, there can be disputes about the company’s direction. If things go poorly, there can be disputes around who must pay the costs.

A shareholder agreement usually is quite long and lists many common (and uncommon) disputes that can come up among business partners. If you seek capital from outside investors, they often ask for a shareholder agreement. If you don’t have one, it doesn’t look good.

Business Law in Toronto

Some of the things you should consider before starting a small business are:

• A shareholder agreement
• Your corporate setup
• Contract creation
• Contract review
• Corporate minutes
• Trademarks

Lawyers are made to protect the general population. Municipal, provincial, and federal laws apply to businesses, and ignorance of the law is no excuse.

The business world is very complex. Making lots of sales is not enough to ensure your company does well. If you own a restaurant and someone slips outside your restaurant, will you get sued? How will you react? What happens if there is a trademark dispute?

It is important to keep good records to protect your business. If a legal issue goes to court, evidence will be required to prove or defend the claim. Keeping cameras around if customers visit your business is a great idea.

Toronto Business Lawyers Suggest Keeping:

• All payroll and registration documents for the business
• If someone gets hurt, document everything about the incident
• If there are any disputes or allegations, quickly respond and investigate

Business Law In Toronto Is Civil Law

Civil law is different from criminal law. Civil cases involve two individuals or groups that cannot agree on something. Examples include business disputes, family law issues, and estate disputes. Our law firm focuses on these.

It is a case of the plaintiff (the person who started the case) versus the defendant (the person sued). The decision is based on the balance of probabilities, which means that the side with the more probable evidence succeeds.

The case often first goes to a pre-trial conference, which is also often followed by a pre-trial settlement. Most of the time, there is no jury, just a judge.

Corporate Lawyers

You also want to ensure your corporation is set up to protect you from personal liability. Your family doesn’t want to lose your house and car because of your business. It would be best to talk to an accountant and a lawyer to decide which is right for you.

Most people fear talking to a lawyer because they think they can’t afford it. If you can afford to open a store, you can afford a lawyer. Take legal protection very seriously.

Small business lawyers don’t need to cost a lot of money. But make sure you do not wait until a problem occurs before you reach out to a lawyer. Most people don’t want to pay to plan; they want to pay to fix it. That is not a great business decision.

Navigating Toronto’s Regulatory Landscape

Some people pay 50% in taxes because the entrepreneur did not select the correct business structure. Also, things can go to litigation if you don’t have something written down. Court costs are often $100,000+. Legal planning with a business lawyer costs typically around $5000.

It’s also important to note some of our business lawyers charge per hour and some offer flat fees. It’s essential to find the right Toronto business lawyer for you.

Litigation can be called any of the following:

• Application
• Case
• Lawsuit
• Matter
• Action
• Proceeding

Alternative Dispute Resolution

When a lawsuit has been started, Toronto Business Lawyers must be hired. If the claim is very small, dealing with it yourself in small claims court might be possible. But most businesses hire business attorneys even when the claim is small. The business reputation is important, and losing a lawsuit doesn’t look good.

One of our business lawyers can walk you through other options besides going to court. The court is very expensive, and the outcome can be unknown. If you lose your case, the judge might award the other side with costs.

Mediation and arbitration are both options that do not require going to court. An additional benefit of staying out of court is that it is private. You do not want the opposing party to say nasty things about your company in court. There may be media reporters in the court looking for exciting stories.

Looking for Toronto business lawyers? Reach out to us.

High-level business law disputes in Toronto

At the beginning of the article, we discussed some small business law disputes. Now, let’s look at the big ones.

Toronto is a bustling city with diverse businesses and entrepreneurs who often rely on business lawyers to navigate the legal complexities of running a company. Over the years, several high-profile business law disputes have taken place in Toronto, drawing attention from Canada and worldwide.

One such dispute involved the Canadian telecommunications giant Rogers Communications. In 2008, Rogers was embroiled in a legal battle with the Canadian Radio-television and Telecommunications Commission over its plan to introduce a new technology allowing the company to charge customers for internet usage based on the amount of data consumed.

Agreements and Contracts: Crafting with Precision

The CRTC argued that the new system violated its net neutrality policy and would negatively affect consumers. The case ultimately went to court, and Rogers was ordered to stop using the technology.

Another notable business law dispute in Toronto involved the Canadian food company McCain Foods. In the late 1990s, McCain was engaged in a legal battle with the U.S. fast-food chain Burger King over the distribution of frozen french fries.

Burger King claimed that McCain Foods had breached its contract by selling frozen fries to other fast-food chains, while McCain argued that Burger King had violated the contract by failing to purchase the required amount of fries.

The case was eventually settled out of court, with Burger King agreeing to purchase a minimum amount of French fries from McCain over several years.

Toronto Business Lawyer Insights

In a more recent business law dispute in Toronto, the Canadian pharmaceutical company Apotex was sued by a group of investors in 2017. The investors claimed that they had been defrauded by Apotex’s founder, Barry Sherman, who had died the previous year.

The investors alleged that Sherman had inflated the value of Apotex’s shares, causing them to lose millions of dollars when the company’s stock price fell. The case is still ongoing and has been complicated by Sherman’s death, which was initially ruled a murder but has yet to be solved.

Toronto has witnessed high-profile business law disputes over the years, affecting companies from various industries. These cases serve as a reminder of the significance of legal expertise and guidance in the business world and the need for well-drafted and precise contracts and agreements to prevent disputes from occurring.