City Renames Venue After Alleged Breach
The City of Mississauga has renamed the Paramount Fine Foods Centre to the Mississauga Sports and Entertainment Centre, alleging the company breached the naming rights deal. The dispute has escalated into dueling lawsuits between the city and Paramount Fine Foods founder Mohamad Fakih.
In a May 26 news release, Mississauga Mayor Carolyn Parrish announced the renaming effective June 1, stating the city ended its contract with Paramount after the company allegedly owed $1.6 million. The city subsequently filed a lawsuit against Fakih Group Inc. (FGI), formerly Paramount Franchise Inc., for $9 million for breach of contract and conversion, claiming FGI failed to meet its contractual obligations within a year of signing the July 2018 deal.
Fakih Files Libel Suit
On Friday, Fakih filed a libel lawsuit alleging the city defamed him by publicly claiming his company owes over $1 million. Fakih seeks $3 million in general damages for defamation, $750,000 for aggravated and punitive damages, and $500,000 for alleged breach of confidentiality obligations, totaling $4.25 million.
Fakih’s statement to the Toronto Sun called the city’s countersuit a “political stunt against a man who has spent over a decade investing in, donating to and serving this city.” He accused the mayor of repeatedly breaching confidentiality, noting that details of the lawsuit were known to many before the city filed the claim.
Allegations of Abuse and Boycott
The libel suit alleges that statements by the city and mayor triggered boycotts against Fakih’s businesses and that he received a “substantial volume of anti-Muslim, anti-Arab and related abuse.” Fakih also claimed the city proposed a discounted settlement of roughly $1.2 million plus tax, to be paid in equal installments over 36 months, and that 36 post-dated cheques were provided to the city on May 27. He alleges the city breached confidentiality by sharing the amount owed.
In a statement, the city said it believes Fakih’s lawsuit is “entirely without merit and will respond in due course through the courts.” The city added that “as this issue is now in the courts, the mayor and the city have no further comment at this time.”
