A commercial landlord brought an application seeking interpretation of a lease and additional rent for a basement area occupied by the tenant’s assignee following insolvency proceedings.
The court examined the lease language, surrounding negotiations, and principles of contractual interpretation under Sattva.
It held that the basement was not part of the leased premises, but the lease rent was calculated on a per‑square‑foot basis.
The tenant’s assignee was therefore liable to pay rent for the basement based on the lease rate for its square footage from the date of assignment.
The landlord’s separate claim for rectification of the lease to reflect greater square footage of the upper floors was dismissed because the landlord had expressly waived the contractual right to remeasure the premises.