Background:

• In 2018, Street Godz Inc. (“appellant”) leased part of 4252 Chesswood Drive, Toronto, from 2556593 Ontario Inc. (“respondent”) for five years to operate a garage/auto mechanic business.
• The appellant stopped paying rent and later sought to assign the lease to a buyer intending to operate an auto body shop. The respondent refused consent.
• The appellant sued for breach of lease, while the respondent counterclaimed for unpaid rent and property damage.

Trial Decision:

• The trial judge dismissed the appellant’s claim and awarded the respondent:
  • $81,270 for rent arrears
  • $93,800 for property damages

Appeal Arguments & Court’s Findings:

1. Hearsay Evidence on Damages: The appellant argued the trial judge improperly relied on a contractor’s repair estimate without testimony. Court found no error, as the judge relied on testimony and photographic evidence.
2. Exclusion of Surreptitious Recordings: The appellant argued improper exclusion of recordings of lease-related conversations. Court ruled they lacked probative value despite the judge’s questionable remarks on legality.
3. Refusal to Assign Lease: The appellant claimed the respondent’s refusal was unreasonable. Court upheld the finding that an auto body shop required different space use.

Outcome:

• Appeal dismissed.
• Appellant ordered to pay $7,000 in appeal costs.