A Toronto judge has denied an injunction against the sale of two downtown theatres, giving theatre impresario David Mirvish the all clear to buy them.

Aubrey Dan's Dancap Productions had sought an injunction to block the sale of the Canon and Panasonic theatres to Mirvish.

Dan, who has brought a string of high-profile productions to Toronto, said sale of the theatres to Mirvish would put him at a disadvantage in mounting his shows.

It would also violate his deal with Key Brand Entertainment, which bought the theatres from Live Nation and had signed Dancap to manage them, he said when he filed for the injunction.

But Justice Geoff Morawetz released a written decision Tuesday saying Dancap had not met the proper conditions for an injunction.

"It seems to me that Dancap seeks to obtain the rights to control the sale of the theatres through this motion," Morawetz wrote. "It did not negotiate for this right in the term sheet."

In a statement released late Tuesday, Dan said he was disappointed by the judge's decision.

According to Dan, the judge did agree that the termination of Dancap's management role in the theatres does "raise a serious issue to be tried." Dan said he may pursue further legal action.

'Our position was validated'

Mirvish welcomed the ruling, saying he hopes this is the end of the issue.

"Our position was validated by the judge and he seems to have accepted all of our arguments," Mirvish said. "He says that Key Brand has the right to sell and that we have a binding agreement to purchase."

Mirvish had been leasing the Canon and Panasonic theatres, both of them with downtown locations, and a clause in his lease gave him an option to buy.

A Mirvish production of Monty Python's Spamalot is running at the Canon and the Panasonic is showing We Will Rock You.

Dancap has signed a long-term agreement to mount its shows in the Toronto Centre for the Performing Arts, in north Toronto, but had hoped to have free access to a downtown theatre. Dancap's production of Jersey Boys begins its run in Toronto on Thursday.

With files from the Canadian Press