Background:
670152 B.C. Ltd. (landlord) leased commercial property to Premium Granite Works Inc. (tenant), guaranteed by William Pat Baril. A dispute arose over a blocked drain in the parking lot, causing water accumulation that led Premium’s insurer to refuse coverage. Premium vacated the premises, claiming the lease was terminated due to the landlord’s failure to repair the drain.

Legal Issues:

• Breach of Lease: The landlord claimed Premium wrongfully terminated the lease and sought damages for unpaid rent and repair costs.
• Fundamental Breach: Premium argued the landlord’s failure to repair the drain made the premises unfit, justifying lease termination. The court ruled the issue was not severe enough to constitute a fundamental breach.
• Frustration of Contract: Premium argued the lease was frustrated due to the insurance issue. The court rejected this, finding the problem was repairable.

Court’s Decision:

• The court held that the parking lot was not part of the leased premises, making the landlord responsible for repairs.
• Premium was found in breach for vacating without proper notice.
• The counterclaims for deposit return, rent overpayment, and moving costs were dismissed.

Damages Awarded:

• The court awarded 670152 B.C. Ltd. $78,644.76 in damages against Premium and Baril.
• Additional claims for property repairs were dismissed.
• The issue of legal costs was reserved for a future hearing.