A high-profile dispute between a prominent business owner and a Canadian city has escalated into a pair of dueling lawsuits. Mohamad Fakih, owner of Paramount Fine Foods, filed a libel lawsuit against the City of Mississauga on Friday, alleging that the city defamed him by publicly claiming his company owes over $1 million in a deal related to the naming rights of a major sports and entertainment venue.
The city had announced on May 26 that it would be renaming the Paramount Fine Foods Centre to the Mississauga Sports and Entertainment Centre, citing an alleged debt of $1.6 million. In response, the city filed a lawsuit against Fakih Group Inc. on Monday, seeking $9 million for breach of contract and conversion. The city claims that Fakih's company failed to meet its contractual obligations within a year of signing the deal.
Fakih has dismissed the city's countersuit as a "political stunt" aimed at him, a businessman who has invested heavily in the city over the past decade. He alleges that the mayor breached confidentiality agreements by sharing details of the lawsuit before it was even filed, and that this has led to a substantial volume of anti-Muslim and anti-Arab abuse.
The libel suit also claims that the city's statements triggered boycotts against Fakih's businesses and that a proposed settlement of $1.2 million was not handled properly. Fakih is seeking $4.25 million in damages, including $3 million for defamation, $750,000 for aggravated and punitive damages, and $500,000 for breach of confidentiality obligations.
The city has stated that it is aware of Fakih's lawsuit and believes it is "entirely without merit." They have promised to respond to the lawsuit through the courts, but have declined to comment further on the matter. The dispute is now set to play out in court, with both sides preparing to present their cases.
