Jumpin’ Java Coffee Express Ltd. and Vancouver Island University have settled a B.C. Supreme Court civil lawsuit out of court.
Jumpin’ Java, a cafe on campus, filed the suit in November and it sought a declaration that the university breached its obligations to renegotiate a second renewal term of a food and beverage service licence, according to court documents obtained through B.C. Court Services.
According to the cafe’s claim, the university and it agreed on a service licence for a new location on campus on July 2, 2004 for a five-year term until the end of August 2009. The cafe constructed a new premises on campus in 2005 and relocated, which it said required sizable expenditures.
The deal was amended in January 2005 to include two terms of renewal. The two parties agreed to a renewal that would run from Sept. 1, 2010 to last Aug. 31.
Last April, the cafe sought another renewal, but a letter from the university, dated May 11, informed the cafe there wouldn’t be negotiations and that the university would terminate the deal.
The cafe claims the university was aware it needed two renewals to make the investment in the venture viable, but the university denied that.
In its response, the university asserted the cafe’s decisions to enter into agreements and spend money on the business were of its own accord. There wasn’t an agreement that the university would be liable for the cafe’s business.
Tori Klassen, university director of public relations and communications, said the settlement was reached in the last two weeks. As part of the settlement, the cafe will operate on campus until April 29, 2017, she said.
Klassen said she couldn’t give any other details because of the confidentiality of the settlement.
When asked if any coffee chains would replace Jumpin’ Java, Klassen said the university hasn’t decided yet.
“There’s been no plans firmed up of to who will be taking over that space once that lease expires. If you heard rumours to that effect, that’s what they were, they were just rumours,” said Klassen.
Brian MacDonald, owner of Jumpin’ Java, didn’t want to comment.
“We are in a settled contract situation and we are not privy to speak of it in any nature,” said MacDonald.
