A cancelled play. A lawsuit for $115,000. What we know about the fraught dispute between two beloved arts organizations

For months, questions swirled in the arts community about Toronto’s Factory Theatre, one of the country’s most important incubators for new Canadian plays. It was no secret that the organization was financially struggling, still reeling from the effects of the COVID-19 pandemic. But few knew exactly what was happening within. 
In 2022, amid a leadership turnover, the company recorded a deficit of $70,000, a figure that ballooned to more than $400,000 the following year, according to public filings with the Canada Revenue Agency. 
Those problems appear to have persisted, with the theatre indefinitely postponing a production earlier this year due to “financial pressures,” while its current fall offerings largely consist of smaller productions with uncharacteristically short runs. 
Now, however, new court filings obtained by the Star paint a clearer picture of the turmoil behind the scenes, centred on a protracted dispute with another company that may end up in court. 
Documents show that Factory has initiated a lawsuit against the Blyth Centre for the Arts, claiming the cultural organization breached their agreement last summer by pulling from its lineup “The Waltz,” a Factory-produced play that was to be presented at Blyth. 
In a statement of claim issued Sept. 10, which has not been tested in court, Factory is suing Blyth for more than $115,000 in damages. Blyth has yet to file a statement of defence. 
“The last thing Blyth wanted was a cancellation of this production, a play Blyth had in commission since 2018,” Gil Garratt, artistic director of Blyth, said in a statement to the Star. “The Blyth Festival suffered substantial costs due to the cancellation. We are still in the process of negotiation with Factory. We remain hopeful that we can come to an understanding that benefits both companies.”
Blyth, located in the township of North Huron, about two-and-a-half hours west of Toronto, is a major cultural organization in southern Ontario. Its annual performing arts festival, celebrating its 50th anniversary this year, typically features multiple productions across its two stages.
According to the court filings, Factory said Blyth abruptly cancelled the production on June 5, 2023 and told Factory that it would stop selling tickets for the play, scheduled to run the following month for 14 performances, between July 12 and 29.
“Blyth did not cite any basis for the termination by the terms of the Presenting Agreement itself,” Factory alleged in the court document. “Its stated reason for the termination was that it no longer wished to engage in discussions with Factory Theatre about lighting design, even though its own stated deadlines for preliminary and final lighting design would not expire for another two and three weeks, respectively.”
Written by Marie Beath Badian, “The Waltz” centres on two Filipino-Canadian youth who meet in rural Saskatchewan in the 1990s. The play was to be financially backed by Factory Theatre, which would bear the pre-production costs associated with mounting the show, according to the statement of claim. Blyth, in turn, would present Factory’s production at its own venue.
Because Blyth allegedly reneged on its agreement, Factory said it is owed more than $90,000 in damages, which break down as follows: 
The plaintiff is also claiming an additional $25,000 due to “punitive, aggravated, or exemplary damages.”
Factory said it invoiced the charges to Blyth in June 2023 but has yet to receive payment. “Blyth’s conduct departs markedly from that which would be expected regarding its treatment of a fellow member of the not-for-profit theatre community,” Factory added in its statement of claim. 
The cancellation of “The Waltz” last summer came after what appeared to be an already turbulent relationship between the two companies, stretching back more than a year. 
Badian’s play was originally scheduled to premiere at Blyth in 2022. Unlike the 2023 iteration of the play, the run was supposed to be a co-production between the two organizations, with both theatres splitting the pre-production costs. 
Factory, however, claimed in the lawsuit that Blyth did not uphold its end of the agreement. According to the statement of claim, Blyth had promised to build the sets, costumes and props for the production and would later invoice Factory for 50 per cent of the cost. 
When Blyth did not produce these elements, Factory said it was forced to build them “entirely at its own cost” of $34,000. Factory further alleged that representatives from Blyth cancelled or failed to attend planning events ahead of the production. The company did not claim damages from Blyth for these specific events in the statement of claim.
“From the outset, Blyth displayed a disregard for its commitments to put on the joint production with Factory Theatre,” the Toronto company said in the lawsuit. 
That 2022 production of “The Waltz” was later cancelled, with Blyth citing lost rehearsals due to COVID-19 cases among members of the company, according to the statement of claim. 
Despite the cancellation, the play subsequently premiered at Factory later that fall. And following the second cancellation in 2023, the Factory production went on to tour Canada, playing in Winnipeg and Ottawa. 
If the court case moves forward, it could have significant ramifications for Blyth, which, like Factory, is also struggling to financially recover from the COVID-19 pandemic. Last year, the company reported a deficit of more than $500,000, according to records with the Canada Revenue Agency.