Fairweather Ltd. has filed a $250-million Federal Court lawsuit against American discount retailer Target, which recently announced Canadian expansion plans.

A Target Apparel store in the Rainbow Centre in Sudbury, Ont. The U.S. chain Target Corp. takes issue with Canadian company Fairweather's use of the Target name. (Gino Donato/Canadian Press)

In documents filed Monday, Fairweather is seeking an injunction to prevent the U.S. company from using the Target name in Canada. The American discount retailer announced last week it plans to open roughly 150 stores in Canada, after it bought the lease interests of more than 220 Zellers locations across the country.

Fairweather, owned by retailing mogul Isaac Benitah, claims it has owned the rights to the Target name in Canada for more than a decade, when it bought the rights to that brand and others from now-defunct retailer Dylex Ltd.

Toronto-based Benitah also runs Randy River, International Clothiers and other mid-sized Canadian retail names.

The documents say Fairweather has been operating a Toronto clothing store under Target Apparel since at least 2005. There are also locations in Sudbury, Ont., and Nanaimo, B.C., and more store openings are planned in Surrey, B.C., and elsewhere.

This isn't the first time the two companies have had legal altercations. Their clashes go back to 2001, when the U.S. chain first took issue of Benitah's use of Target.

The Federal Court of Appeal ruled in Benitah's favour in 2007, before the U.S. retailer tried again in 2010, in a case that is ongoing.

Target Corp. has again asked a court for an injunction to ban the use of the Target name in Canada, said a report in the Globe and Mail on Tuesday.

Both companies have refused to comment on the latest court actions.

With files from The Canadian Press