1201466 Ontario Inc. (Applicant), doing business as Georgetown Toyota, sought declaratory relief regarding the renewal of a commercial lease with 1799144 Ontario Inc. (Respondent).
The Respondent argued that the Applicant was in material default of the lease, nullifying the exercise of the renewal option, and that a new agreement was required for renewal.
Key Points:
The Applicant successfully exercised its option to renew the lease, with the court finding no material default at the time of renewal.
The court rejected the Respondent’s claim that a new agreement was necessary for the lease renewal.
The disputes over the lease included allegations of insufficient insurance coverage, improper maintenance of parking areas, and contamination with hazardous materials (motor oil), all of which were dismissed by the court.
The court criticized the Respondent’s raising of alleged lease defaults, suggesting it was done in bad faith to gain an advantage in rent negotiations.
The lease was renewed for five years starting July 1, 2023, with all terms, except the minimum rent, continuing from the original lease.
Outcome:
The Applicant’s motion for declaratory relief was granted, affirming the valid renewal of the lease.
The Interim Injunction Order was terminated, and the Respondent was ordered to pay partial indemnity costs to the Applicant, fixed at $27,500.
