(Toronto) Cineplex has filed a cross-appeal seeking alternative damages if a court overturns a decision that forced Cineworld, a former suitor for the movie theater company, to pay it $1.24 billion.
Posted at 11:51 a.m.
In documents filed with the Ontario Court of Appeal, Cineplex argues that it should be awarded more than $2.1 billion in damages due to its decline in value and loss of performance.
Cineworld said in a statement that it disagrees with the cross-appeal, but will respond to it and will not pay any compensation while the case is pending.
Cineplex’s request comes in response to an appeal Cineworld filed earlier this month that claimed Judge Barbara Conway made “extractable errors of law” when she ruled in favor of Cineplex in December.
The lawsuit presided over by Judge Conway stemmed from Cineworld’s decision in June 2020 to end a $2.18 billion deal to acquire Cineplex.
Cineworld Group argued it was free to break the deal because Cineplex deferred its accounts payable for at least 60 days, cut spending to the ‘bare minimum’ and stopped paying owners, movie studios , film distributors and suppliers at the start of the pandemic.
Cineplex said the actions were part of the normal course of business for movie companies during a pandemic and did not harm its reputation with owners and studios.