Saskatchewan judge orders Vern's Pizza location to stop using the name after franchise feud
A judge has ordered the Vern's Pizza in Saskatoon’s Sutherland neighbourhood to stop using the Vern's name after finding its franchise agreement expired in 2016.
In a recent King’s Bench decision, Justice Michael Tomka found the operator of the restaurant breached its franchise agreement and the Trademark Act.
Tomka ordered the franchisee "to cease and permanently refrain from carrying on business as a Vern’s Pizza at the Central Ave location."
The restaurant has until Sept. 30 to follow the judge's order.
Brothers Wayne and Kelly Shutyr operate the restaurant, according to court documents.
The Shutyrs entered into a franchise agreement with Vern's Pizza Company Ltd. in 2000, to run two restaurants — Central Avenue and 8th Street East.
In August 2016, the 8th Street location closed because the landlord sold the building. The lease was terminated.
Court documents say "the franchisor attempted to find possible alternative locations" for the second restaurant.
Without a second store open, Vern's Pizza told the Shutyrs their agreement was over.
The brothers continued to operate the Sutherland location.
In December 2016, Tim Burns, owner of the Vern's Pizza franchise, wrote a letter to the Shutyrs.
"Even though the term of your franchise agreement has ended, you have continued to carry on business and pass yourself off as a Vern’s Pizza business," the letter reads.
"You are using our proprietary and intellectual property without right to do so. This includes but is not limited to unauthorized use of our name, trademarks, recipes and goodwill."
In a responding letter, the Shutyrs' lawyer, disagreed the franchise agreement had ended.
The franchisee argued that both locations would operate as separate businesses, and the agreement would only end if the lease at both locations ended.
The franchise agreement had a "drafting issue," according to court documents. The pizza franchise did not fill out the addresses that would be used for the restaurants.
Still, the judge sided with Vern's. The end to the 8th Street lease, also ended the term of the franchise agreement, the judge ruled.
"Given my finding that the term of the franchise ended upon the loss of the lease at the 8th St location and given the franchisee has been continuously operating at the Central Ave location as it always had, I find the franchisee was in breach of the franchise agreement and the Trademark Act," Tomka wrote in his decision.
Amid the dispute, the Shutyrs continued to make their five per cent royalty payments to Vern's Pizza Company Ltd. — totalling $247,051 between September 2016 and October 2022.
"The franchisor has continued to accept royalties ... which fully compensates them for the use of the trademarks and thus, no actual damages have been proven to arise from franchisee’s actions," a judge ruled.
Tomka ordered the Shutrys to continue to pay royalties until Sept. 30, 2024.
"I am of the view no further compensation beyond these payments should be awarded," the judge ruled.
There are currently 12 Vern's Pizza locations in Canada, including seven in Saskatchewan, three in Alberta and two in Winnipeg.
CTVNews.ca Top Stories
DEVELOPING Trump is safe after Secret Service opened fire at suspected person with firearm near his golf club
Donald Trump's campaign says he is safe after gunshots were reported in his vicinity Sunday afternoon in Florida.
B.C. to open 'highly secure' involuntary care facilities
B.C. will be opening “highly secure facilities” for people with addiction and mental health issues in the province, officials said Sunday.
They came from Jamaica for work, now they're homeless and out thousands of dollars in lost wages
Abuse of Canada’s temporary foreign worker program has left a group of carpenters from Jamaica 'destitute' after an Ottawa company refused to pay them for nearly half a year of work.
Montreal bars, restaurants react to Quebec bill to regulate merchant tipping requests
Quebec tabled a bill on Thursday that would regulate how merchants determine suggested tips, forcing businesses to calculate them based on the price before tax. Restaurant staff and management are divided on the policy.
TIFF audience prizes for 'Life of Chuck,' Hip doc; Rankin among Canadian winners
'The Life of Chuck,' an offbeat film by writer-director Mike Flanagan, wins the People's Choice Award at the Toronto International Film Festival.
Queen Victoria's favourite Tuscan villa for sale for more than US$55 million
Once a favoured holiday destination for Queen Victoria, and reputedly described in one of the greatest works of Italian literature, the Villa Palmieri is steeped in history and could now be yours – if you have more than €50 million (US$55 million) lying around.
Air Canada deal avoids shutdown, brings relief to passengers and business groups
Travellers, business groups and politicians expressed fervent relief on Sunday after Air Canada and the union representing thousands of its pilots negotiated a new labour deal and averted a disruptive, countrywide shutdown.
Vance doesn't back away from false claims about migrants in Ohio even amid threats to the community
Republican vice-presidential candidate JD Vance did not back away on Sunday from the false claims he and Donald Trump have been making that Haitians in an Ohio community are abducting and eating pets, even as the state's GOP governor and other officials insist there is no evidence of such behavior.
What are your rights as a neighbour in Canada?
If you have beef with your neighbour and you feel it's gone too far, what should you do? A personal injury lawyer has some advice.