Transfer of restaurant assets through a landlord after lease surrender is not a sale of a business.
The applicant union alleged that a sale of a business occurred under section 55 of the Labour Relations Act when the respondent leased restaurant premises and purchased assets formerly used by Skyline Hotels Ltd. Skyline had surrendered its lease to the landlord, Campeau Corporation, following litigation.
Campeau subsequently leased the premises and sold the assets to the respondent.
The Board found that Skyline transferred surplus assets to Campeau, who then transferred them to the respondent, and that these separate transactions did not constitute a sale of a business.
The application was dismissed.
Hotels, Clubs, Restaurants & Tavern Employees' Union, Local 261 v. Calmil Enterprises, 1980 CanLII 772