Case Background:

• Baran Turk Inc. seeks to continue operating its restaurant in premises rented from 111518866 Canada Inc.
• The landlord terminated the lease on January 5, 2024, but the tenant re-entered under a "Lease Reinstatement and Amending Agreement" on January 19, 2024.
• The landlord terminated the tenancy again due to late rent payments and lease breaches.

Key Facts:

• Rent payments from February to July 2024 were late or bounced.
• Alleged breaches include improper garbage disposal, blocking the alley, and roof damage.
• The tenant’s insurance was temporarily canceled due to nonpayment.
• Internal disputes exist between tenant co-owners.

Court’s Analysis:

• The court applies a three-part test from RJR Macdonald: a serious issue to be tried, irreparable harm to the applicant, and the balance of convenience.
• The tenant’s conduct does not disqualify it from relief.
• Significant investment in leasehold improvements and potential irreparable harm to the tenant’s business are considered.

Decision:

• Interim relief from forfeiture is granted with conditions:
  • Immediate payment of July rent.
  • Timely payment of future rents.
  • Proof of insurance.
  • No animals or garbage in the laneway.
  • No obstruction of the laneway, except for reasonable delivery times.
  • Communications between parties through legal counsel.
  • Continuation of all lease terms.
• The tenant must pay $12,000 to the landlord for costs and expenses.

Conclusion:

• Baran Turk Inc. is granted temporary relief to continue its business under conditions until the court's final decision.
• Baran Turk Inc. was the successful party, as the court granted their motion for interim relief from forfeiture.