Great Canadian Gaming Corporation v. British Columbia Lottery Corporation

No S-152587

NST brought a claim by Great Canadian, which commenced in 2015, for an order enjoining BCLC from taking a disputed marketing fee and for recovery of $35 million in marketing fees collected by BCLC since 2009.  BCLC had deducted the marketing fee from remuneration it paid to GCGC. The claim was settled on August 16, 2019, on the eve of a nine-week trial.  The terms of the settlement are confidential.

The question in dispute was whether the parties had agreed to eliminate the marketing fee in 2009, or whether they had agreed to change from a fee held in trust to a commission, to a different amount, and for the balance of the term of the casino operational services agreement.  The dispute included an interplay among tax treatment of fees collected, gaming marketing, oral discussions and negotiations, agreement by conduct, contracts with other gaming service providers, and allegations of bad faith in contractual dealings. The case was of significance to Great Canadian, which alleged that BCLC was in a position of dominance in their relationship.  Because of the relationship dynamic, the claim was brought in 2015 on the eve of expiration of a limitation period.  By June 2018, BCLC had ceased taking the disputed marketing fee, a significant achievement after almost 10 years of Great Canadian protest.  The remaining claim was for recovery of almost $35 million taken by BCLC from 2009 to June 2018.

NST Lawyers Involved

R.J. Randall Hordo, Q.C., FCIArb.

R.J. Randall Hordo, Q.C., FCIArb.

Partner

rhordo@nst.ca
604.639.3666 / 604.649.3994

Karen L.M. Carteri

Karen L.M. Carteri

Partner

kcarteri@nst.ca
604.662.8875