Toronto Management Contract Litigation Lawyers
Toronto Management Agreement Dispute Lawyers
Service Contract Dispute Lawyers

Toronto Management and Management Contracts Disputes Lawyers

Businesses increasingly enter into management contracts, and as a result, litigation involving management companies is a growing area of litigation. Gilbertson Davis LLP has lawyers with experience in the litigation of disputes concerning contracts and agreements of diverse subject matter in a wide variety of businesses and industries.

Purpose of Management Contracts 

Management contracts generally involve some level of the operational control of a business being vested in a separate party that, for a fee, performs the necessary managerial functions of said business. Such management arrangements can allow an individual or entity that owns multiple businesses to delegate some day-to-day responsibilities to the management company in order to focus on “bigger picture” projects. Management companies typically acquire technically experienced employees in order to increase efficiency in areas of management, accounting, and marketing.

The functions of the managing party may be broad in nature and may include such tasks as: technical operation, human resources, training and management of employees, accounting, and marketing services. Management contract disputes may arise when there is a disparity in the services expected and the services received, conflicts of interest arising, negligence on the part of the manager, or compensation being arbitrarily withheld. It is important to note that the government may also enter into management contracts.

Privacy

When the owner of a company enters into a management contract they are potentially risking the privacy of the business, as the information of the other contracts made by the business are also available to management. Managers, depending on the scope of their functions, are may have in-depth information about vendors and business finances. Employee records, with a wide array of personal information, may also be accessible to the management company. This can put the company in a vulnerable position.

Common Types of Management Contracts

A property management contract is between the owner of the property and the property manager. The property manager or management company may operate, control, maintain, and oversee the property. The property manager may not only be responsible for certain tasks in relation to real property, but also personal property such as equipment and tools. Property managers typically receive a percentage of the rent accrued on the property, though they may also operate on a fixed fee, guaranteed, or revenue shares basis. It is crucial that one is aware of what services are included, excluded, and considered extra within the property management contract. Beyond this, property owners must be aware of their obligations to set up and maintain a reserve fund and to obtain and maintain proper insurance.

Disputes may arise when structures collapse, there are injuries or death on the property, there is an infestation, use of a unit as a grow-op or reputational harms occur that results in fewer tenants.

Logistics, or the management of the “flow” or organization of objects from one point to another, generally involves intense organization and sophisticated implementation strategies. Management contracts may be created for the transportation of food, materials, equipment, animals, and liquids in order to increase the efficiency of the business. A management company may be hired to create smooth transitions within a business in the areas of inventory, warehousing, security, and the transportation itself.

Disputes may arise when there is lost inventory, injuries or death on the premises, damaged goods, or failure to complete an order. Whether the business involves transportation by land, air, or sea, Gilbertson Davis LLP can advise as to your rights and obligations in relation to a logistics management contract.

Investment advisors may be hired to manage an individual’s or business’ financial affairs. The investment manager may be authorized to act on behalf of the investor to manage assets stipulated in the agreement.

Disputes may arise when the manager does not provide prudent advice resulting in monetary loses. Gilbertson Davis LLP can advise as to the rights and obligations that stem from such an agreement.

Internet technology is a growing area in many businesses, and thus it is important that those with expertise are managing the development of the technological infrastructure and operations within the company. Management contracts can provide a useful way for technological services to be incorporated smoothly into a business.

Gilbertson Davis LLP can advise as to the rights and obligations that flow from such an agreement, and act for a party in dispute or litigation.

Management contracts are common in the context of hotels, as between the owner and the operator of the hotel. Contracts of this kind typically have a long duration. The operator performs day-to-day tasks, maintenance, food/beverage sales, and has the power to hire and fire employees. Hotel managers are common because investors lack the skill and knowledge required for operation.

Disputes may arise when there is an injury or death on the premises, an infestation, collapsed structures, wrongful dismissals of employees by the manager, or reputational harms resulting in less customers.

The investor and the builder may enter into a project management contract for both the pre-construction and construction phase. The manager may be responsible for the administrative operational work, and sub-contract claims that arise from their own inadequate performance. Construction agreements can be beneficial in complex projects that do not have a lot of information available at the early stages.

Gilbertson Davis LLP can advise you on any claims that arise from project management contracts. 

Talent managers are often used by athletes, celebrities, actors, broadcasters, digital and social media influencers, and musicians in order to handle day-to-day business and administrative affairs. In exchange, managers receive commission. Fine arts management contracts and sports management contracts often involve young individuals, and it is important to protect your interests through legal representation if necessary.
In both the public and private sectors, food services are often governed by a management contract. For example, schools, nursing homes, and government offices, often have a management side that is responsible for preparing, serving, and marketing the food, while the operator receives payment in the form of the lease and a percentage of the food sales. In the event of a breach, Gilbertson Davis LLP can advise as to potential legal remedies available.

Remedies

In the event of a breach of a management contract, there are a variety of legal remedies potentially available. Damages are commonly awarded in order to monetarily place the individual who experienced the loss in the same position they would have been in had the contract been fulfilled. Injunctions, whether interlocutory, interim, or permanent, may also be available in the event of a breach. Other remedies available include: a declaration that the contract is void, termination of the contract, specific performance, restitution for unjust enrichment, rectification, rescission, or cancellation.

International Experience

Gilbertson Davis LLP also has lawyers with experience in international contract disputes. Understanding of jurisdictional issues and the “conflict of laws”, the body of law used to determine the law to be applied to a dispute, is often central to an international or cross-border contract dispute.

Some of our lawyers have been admitted and practiced in foreign jurisdictions (including England, Bermuda, and New York), have both foreign and local legal education including the U.S. and U.K. and a number of our lawyers and law clerks speak languages including French, Japanese, Shanghainese, Mandarin and Cantonese.

Some of our lawyers are consulted by those located in the United States, and in the past have been consulted by or retained in litigation by those (or matters located) in Alaska, California, Washington, Nebraska, Illinois, Missouri, Ohio, New York, New Jersey, Rhode Island, Massachusetts, North Carolina, Tennessee, Georgia, Louisiana, Florida and Texas. Internationally, some of our lawyers have also been involved in litigation or arbitration with clients (or matters) located in the Netherlands, Norway, Sweden, England, Denmark, Italy, Switzerland, Germany, Greece, Cyprus, Malta, Monaco, Guyana, Liberia, South Africa, Angola, The Bahamas, Bermuda, British Virgin Islands, Dominican Republic, Dubai, United Arab Emirates, Iran, Kuwait, India, Bangladesh, South Korea, Hong Kong, PRC and Australia.

Why Gilbertson Davis LLP?

Gilbertson Davis LLP can serve your needs with lawyers that have experience in various related practice areas. We strive to resolve our clients’ disputes efficiently through the provision of quality legal services at reasonable rates. Gilbertson Davis LLP can provide you with sound advice and results oriented representation.

If you are involved in a management dispute or a management contract dispute, contact Gilbertson Davis LLP to arrange an initial consultation.It is important to seek legal advice promptly, as your rights and obligations may be affected by delay in taking the proper course of action. For related practice areas, please see our webpages on contract litigation,injunctions and urgent remedies, and international litigation and arbitration.