A company that bought a commercial gift shop property in Horseshoe Bay in a deal that guaranteed it exclusive rights to sell souvenirs and ice cream has been awarded over $93,000 in damages after a judge found the development company, Primex Developments Horseshoe Bay Ltd., reneged on the agreement.
Aria Holdings Ltd. bought the commercial strata unit in the Galleries on the Bay development in July of 2007. In part, the company bought the property and included an exclusivity clause to protect its existing businesses in the area, including the Sea to Sky Dollar Café and a Baskin Robbins franchise, according to court documents. The company hoped to set up shop next to Starbucks, to take advantage of foot traffic.
Instead, competing retail shop Bayview Convenience opened between Aria's new shop and Starbucks, in a unit owned by one of Primex's largest shareholders. That shop sold many items Aria was supposed to have exclusive rights to, according to court documents.
B.C. Supreme Court Justice Gordon Funt recently awarded Aria $93,500 for losses caused by breach of the exclusivity deal, following a five-day trial last year.
Funt dismissed Aria's claim requesting damages over an alleged promise to be located next to Starbucks. Funt noted Aria's contract was drawn before Starbucks had signed a lease. Funt also noted Aria's owner did not back out of the deal after discovering he would not be next to Starbucks in the development.
