A high-profile dispute between the City of Mississauga and entrepreneur Mohamad Fakih, founder of Paramount Fine Foods, has escalated into a multi-million-dollar legal battle, with both sides accusing each other of wrongdoing over the naming rights agreement for the city’s largest sports and entertainment venue.
The controversy began after the city announced that it was terminating its partnership with Paramount Fine Foods and temporarily renaming the Paramount Fine Foods Centre as the Mississauga Sports and Entertainment Centre. Mayor Carolyn Parrish said the municipality had been forced to end the agreement because Paramount allegedly owed the city $1.6 million and indicated that legal action would be pursued to recover the outstanding funds.
Fakih strongly rejected the allegations, saying his company had been willing and prepared to settle the matter. He later filed a $4.25-million libel lawsuit against the City of Mississauga and Mayor Parrish, claiming that public statements about the dispute were misleading, defamatory and breached confidentiality agreements. The lawsuit alleges the city had proposed a reduced settlement amount and that his company had already taken steps to address the outstanding payments.
Fakih argues that confidential financial information was improperly disclosed and claims the public controversy has damaged his reputation and led to boycott calls and abusive messages directed at him. He says he acted in good faith and sought mediation instead of litigation.
The City of Mississauga, however, has launched its own lawsuit seeking approximately $9 million, alleging that Fakih Group Inc. repeatedly failed to meet its contractual obligations under the naming rights agreement originally signed in 2018. According to the city, the agreement granted Paramount exclusive naming rights for the venue in exchange for annual sponsorship payments and a share of concession revenues.
Court documents allege that the company fell behind on payments, prompting a revised agreement in 2023 that extended the partnership and reduced some previous obligations. The city claims that despite these concessions, the company once again defaulted and failed to honour a revised payment plan.
As part of the termination process, the municipality says it incurred substantial costs to remove signs and branding associated with Paramount Fine Foods.
Fakih has dismissed the city’s lawsuit as politically motivated and accused municipal officials of turning a private business dispute into a public spectacle. He also criticized what he described as repeated breaches of confidentiality by city representatives.
Neither side’s allegations have been tested in court, and the legal fight is expected to continue in the months ahead.
What began as a sponsorship agreement for one of Mississauga’s most recognizable venues has now evolved into a bitter courtroom battle involving claims of unpaid debts, defamation, breached confidentiality and damaged reputations, with millions of dollars at stake and no quick resolution in sight.