Lawsuit threatened by Gateway if TTC backs out of deal
The parent company of Gateway Newsstands in the Toronto subway system is threatening to sue the TTC if it revokes a lease extension which has been agreed to but not yet signed-off on.
Lawyers for Tobmar Investments International say this contract has been approved twice so far and the company never expected to be in this position.
The letter stated, "If the commission does not proceed with the contract, then our client will have no choice but to move for injunctive relief for, amongst others, specific performance of its contract with the commission.”
A recent third party review of the lease extension recommended the Gateway leases be put up for public tender and on Monday, the TTC put the Gateway deal on hold. The discussions about putting out a request for proposals will be dealt with by the TTC March 27th.
It's a minor victory for Mayor Rob Ford and his brother, councillor Doug Ford since they had been fighting for multiple bids on the $50-million dollar contract.
On NewsTalk 1010's Live Drive with John Tory, TTC chair Karen Stintz indicated there won't be a gap in service, "The current leases don't expire until 2014, so, the competitive process would run between now and then and with the view that there would be the least disruption possible, so the consumer can still get what they need as they enter the subway system" Stintz said.
(some files by D. Agar)