Quebec Superior Court dismisses injunction to reinstate agreement with Magic Palace

MCK

The Mohawk Council of Kahnawà:ke (MCK) wishes to inform the community that on December 17, 2025, the Superior Court of Quebec dismissed an application for an interlocutory injunction brought by the owners of record of Magic Palace seeking to reinstate the Royalty Agreement between the MCK and Magic Palace.

In its decision, the Court concluded that none of the criteria for granting such extraordinary relief had been met. In particular, the Court found that, at this preliminary stage of the litigation, the Plaintiffs failed to establish a serious issue to be tried regarding the MCK’s right to terminate the Royalty Agreement. The Court further held that the Plaintiff’s allegation of abuse of right was ill founded and that the balance of convenience favored upholding the MCK’s decision to terminate the Royalty Agreement. In its reasoning, the Court found that the evidence at this stage confirmed that a change of ownership/control of Magic Palace had occurred to the benefit of a non-member of the community, namely Mr. Luftar Hysa, in contravention of the Royalty Agreement.

On December 29, 2025, the Plaintiffs filed an application for leave to appeal this judgment, which is scheduled to be heard by the Quebec Court of Appeal on February 19, 2026. Proceedings on the merits of the matter are ongoing, and a trial date has not yet been set. It bears noting that Magic Palace and its owners continue to seek significant compensatory and punitive damages against the MCK and a declaratory judgment to reinstate the Royalty Agreement.

As this matter remains before the Courts, the MCK will not be providing further comment at this time.

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