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A dispute between a city in Ontario and a local restaurant regarding the naming rights for a sports and entertainment venue is heating up, as both sides have now initiated lawsuits against each other.
At the end of May, the City of Mississauga made a sudden announcement about renaming the Paramount Fine Food Centre, alleging that the restaurant owned by Mohamed Fakih owed them $1.6 million.
Now, both parties have launched separate legal actions.
On June 19, Fakih submitted a statement of claim against Mayor Carolyn Parrish and the City of Mississauga, seeking millions in damages for libel and defamation.
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“The City and the Mayor at all material times knew Mr. Fakih to be, acutely sensitive to the reputation and public image of the Paramount brand, particularly within the City of Mississauga, where the Facility bears the Paramount name,” part of his claim read.
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The claim further stated that this sensitivity was “exploited.”
Just three days after Fakih filed his defamation lawsuit, Mississauga responded with its own legal complaint.
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A statement from Mississauga demanded that Fakih and his company pay $9 million in damages for breaching their contract related to naming rights at the city’s main sports arena.
The documents allege that Paramount “fell into default” on its payments regarding naming and concession rights at the venue.
The city claims they made “intermittent and inadequate payments” for use of the arena.
In response, Fakih stated that shareholder issues had delayed payments but emphasized he had always intended to fulfill those obligations.
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