The appellant landlord sought to expand a shopping centre to accommodate a new LCBO store, which required reconfiguring 36 parking spaces.
The respondent grocery store tenant successfully applied for a permanent injunction, with the application judge finding the tenant had a leasehold proprietary interest in the common parking area.
On appeal, the Court of Appeal held that the application judge erred in law, as the tenant lacked exclusive possession of the parking area.
Assuming the tenant held an easement, the Court found no substantial interference with the tenant's rights, as the reconfiguration did not significantly reduce available spaces and the tenant had no contractual right to specific spots.
The appeal was allowed and the injunction set aside.