Friday, Dec 20, 2024
In our February 8, 2024, News ReLease, we reported on The Canada Life Assurance Company et al. v Aphria Inc. (“Aphria”). In that case, the tenant wanted out of its lease and purported to “repudiate”, in an attempt to force the landlord to take the (office) space to market. The landlord took the position that it had no obligation to accept the tenant’s repudiation or look for a replacement tenant, and that the tenant was required to pay rent over the balance of the term.
Friday, Oct 04, 2024
In our November 29, 2023 News ReLease entitled, ‘Are Exclusive Covenants About to Become Extinct?’, we reported on changes to the federal Competition Act (‘Act’). On December 15, 2024, any agreement in Canada that ‘lessens competition’ may be subject to an order under the Act.
Since exclusive use clauses and restrictive covenants may lessen competition, landlords, tenants and property owners agreeing to such terms are exposed to sanction.
The Competition Bureau recently published guidelines (‘Guidelines’) outlining its preliminary enforcement approach to what it dubs ‘anti-competitive controls on the use of commercial real estate’. The Guidelines declare that they are intended to help businesses comply with the new law; unfortunately, the Guidelines raise more questions than they answer...
Tuesday, May 28, 2024
You may have recently read headlines about an interesting development in Canada’s largest commercial real estate market. Last week, a group p...
Monday, Apr 08, 2024
When dealing with limitation periods, once it is determined whether the 2-year or 6-year period applies, it’s critical that the parties turn their mind to the question of: “starting when?”.
Thursday, Feb 08, 2024
The 1971 landmark Supreme Court of Canada decision in Highway Properties Ltd. v. Kelly, Douglas and Co. Ltd., transformed the commercial leasing landscape by adding a fourth option of relief provided to landlords. Prior to this, landlords had three options available: do nothing and demand payment when due, terminate the tenancy and elect to pursue a claim for arrears, or re-enter the premises and re-let on the tenant's behalf. In this decision, a fourth option was introduced, affording landlords the option to terminate the lease and pursue a claim for both arrears and damages. The decision affirms that commercial leases, similar to a contract, ought to be recognized and treated as such, which affords landlords the full remedies under both contract and conveyance laws. However, a recent claim was brought before the courts, where a tenant challenged the decision in Highway Properties, requesting the previous decision be overturned.
Wednesday, Nov 29, 2023
On June 27, 2023, the Bureau released the Competition Bureau Retail Grocery Market Study Report aptly named “Canada Needs More Grocery Competition”. This report contained recommendations to the government, including that the Tribunal take measures to limit exclusive use covenants (referred to in the Bureau’s report as “property controls”) in the grocery industry.
Wednesday, Oct 11, 2023
The Ontario Superior Court of Justice recently confirmed some well-settled law: if a landlord chooses to keep the lease alive despite the tenant's default, it need not make efforts to mitigate its losses.
Wednesday, Sep 13, 2023
When a lease requires a landlord to respond to a request for consent to a transfer within a specific period, failure to do so may result in the landlord being deemed to have unreasonably withheld its consent.
Monday, Aug 21, 2023
In a recent Ontario case, the landlord had the right to allocate realty taxes among premises of the property in its “sole and unfettered discretion”. The Court analyzed the scope of the Landlord’s allocation authority against the organizing principle of “good faith” in contractual performance.
Thursday, Aug 03, 2023
Landlords and tenants should approach removal and restoration obligations carefully. These obligations often seem clear at the conclusion of negotiations, but become ripe for dispute as the tenancy approaches the end of its term.