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Note: In an action on a licensing agreement for the Arrowsmith Program, an educational program for disabled children, the Licensee moved for and was granted an interim injunction against the Licensor/ Plaintiff ordering it to abide the terms of the license. As security for its appeal of the award of an interim injunction, Licensee was required by the appellate court to post either a bond or an LC in favor of Licensor/Plaintiff for CN$100,000. The order did not specify a date by which the security had to be provided, but due to the urgent nature of the proceeding, the court indicated that it anticipated that the security would be posted quickly.

When Licensee tendered a standby LC, Licensor/ Plaintiff's counsel objected to its form. Licensee failed to amend the LC, take any further action, or seek an order clarifying the appropriate form of the LC, although its counsel offered to have the LC amended

On motion of Appellee, the Ontario Superior Court of Justice, Molloy, J. dissolved the interim injunction and remanded for a determination of costs.

[JEB/rlf]

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