Cineplex files cross-appeal in Cineworld court battle

The Canadian theatre chain is seeking "alternative" damages if the appeals court rules that the damages awarded in the Dec. 14 ruling was incorrect.

The court battle between Cineplex and Cineworld has intensified following a decision from Cineplex to file a cross-appeal with the Ontario Court of Appeal.

In an update to investors on Jan. 27, U.K. chain Cineworld stated that Cineplex has filed a cross-appeal to the Ontario court, stating that it should be awarded “alternative” damages if the court rules that the damages awarded by the Ontario Superior Court of Justice was incorrect.

Cineworld says it will “respond to the cross-appeal as part of the appeal process.”

Cineplex was awarded $1.24 billion in damages in the court ruling, which was handed down on Dec. 14. The company had been seeking $2.18 billion in its lawsuit against Cineworld after the company terminated its planned $2.8 billion takeover. Cineworld filed a counterclaim against the suit, which was dismissed by the court.

Cineworld filed an appeal of the decision Jan. 12. In its latest update to investors, the company says it “disagrees with the decision of the Ontario Superior Court of Justice and it also disagrees with the submissions of Cineplex in its cross-appeal.”

Cineplex had to temporarily lay off more than 5,000 employees this month following cinema closures in several provinces. Locations in Ontario have opened Monday (Jan. 31) at a 50% capacity limit indoors. The Ontario government initially imposed a ban on food and drink sales at venues, but later reversed course on the decision.

Quebec cinemas will be permitted to open on Feb. 7 at 50% capacity, to a maximum of 500 people indoors.