The applicant tenant brought an application for declaratory relief regarding the exercise of an option to renew a commercial lease.
The respondent landlord argued the exercise was vitiated because the tenant was in material default of the lease, citing issues with insurance coverage, parking lot maintenance, waste, and contamination.
The landlord also argued a new lease agreement was required.
The court found the tenant was not in material default, noting the landlord's complaints were raised disingenuously during rent negotiations.
The court also held the lease did not require a new agreement for renewal.
The application was granted, and the tenant was awarded costs.