Paramount Fine Foods founder, Mississauga suing each other over naming rights deal
· Toronto Sun
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Just call it the case of the duelling lawsuits.
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Paramount Fine Foods owner Mohamad Fakih filed a libel lawsuit Friday alleging the City of Mississauga defamed him by publicly claiming his company owes more than $1 million in a deal over the naming rights to Mississauga’s largest sports and entertainment venue.
In a May 26 news release, Mississauga Mayor Carolyn Parrish said the city would be renaming Paramount Fine Foods Centre to the Mississauga Sports and Entertainment Centre on June 1 after ending its contract with Paramount. They said they were allegedly owed $1.6 million.
On Monday, the city filed a lawsuit against Fakih Group Inc. (FGI), formerly Paramount Franchise Inc., for alleged breaches of the July 2018 naming rights deal. Mississauga is suing Fakih for $9 million for breach of contract and conversion, claiming FGI failed to live up to its contractual obligations within a year of signing the deal.
Fakih calls countersuit a ‘political stunt’
Fakih said in a statement to the Toronto Sun on Tuesday that the city’s countersuit is a “political stunt against a man who has spent over a decade investing in, donating to and serving this city.
“The mayor has repeatedly breached confidentiality and in fact the details of this lawsuit was known to many by Saturday before the city had even filed the claim. That has no place in public office,” he said in a statement.
The libel suit also alleges both the city and mayor’s statements triggered boycotts against Fakih’s businesses and that he received a “substantial volume of anti-Muslim, anti-Arab and related abuse.” The suit also alleges the city proposed a discounted settlement of roughly $1.2 million plus tax, which was to be paid in equal instalments over 36 months.
The statement of claim said 36 post-dated cheques were provided to the city on May 27 and that the city breached its confidentiality agreements by sharing the amount of money owed.
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Fakih seeking $4.25 million in damages
Fakih is now seeking $3 million in general damages for defamation, $750,000 for aggravated and punitive damages and $500,000 for general damages for alleged breach of confidentiality obligations.
“On Friday, we filed a defamation claim against Mayor Parrish and the city for repeatedly misleading residents with false statements,” Fakih’s statement said.
“This lawsuit is a continuation of that same pattern. It is without merit and will be vigorously opposed. We will see the mayor in court and the residents of Mississauga will finally see the facts.”
In a statement to the Toronto Sun , the city said it was aware of Fakih’s lawsuit, which it believes is “entirely without merit and will respond in due course through the courts.
“As this issue is now in the courts, the mayor and the city have no further comment at this time,” they said.