A huge court win for Cineplex Inc. spells good news for the future of movie theatres and an entertainment complex in Burnaby.
Earlier this year, the struggling company opened a five-screen VIP theatre in Burnaby at the Amazing Brentwood to go with its multiplex at the Metropolis at Metrotown shopping mall. Cineplex also open its massive Rec Room entertainment centre in the Amazing Brentwood after long delays in construction due to COVID-19.
But with the pandemic surging once again in B.C. and across Canada, some movie goers have stayed away from theatres, putting more financial strain on the company.
So it was good news for Cineplex when an Ontario Superior Court of Justice recently ruled in its favour in a breach of contract lawsuit against its former suitor, Cineworld Group PLC.
Judge Barbara Conway awarded damages of $1.24 billion and denied a counterclaim by Cineworld, Cineplex said.
"We are pleased that the court found Cineplex acted properly throughout this difficult period in our history," said Cineplex president and CEO Ellis Jacob in a statement.
Cineworld, however, isn't giving up. Shortly after Cineplex announced its victory, Cineworld acknowledged the ruling and noted that the court had also ordered it to pay $5.5 million for lost transaction costs.
"Cineworld disagrees with this judgment and will appeal the decision," the company said in a statement. "Cineworld does not expect damages to be payable whilst any appeal is ongoing."
The acrimony between the two cinema chains began when Cineworld walked away from its deal to acquire Cineplex in June 2020.
With two major projects finally opened in Burnaby, Cineplex is hoping that there will be no further lockdowns.
- With reporting by the Canadian Press
