Chandaral Hanapangoda

Following a successful motion for summary judgment regarding a commercial lease dispute, the plaintiffs sought costs of $42,587.71 on a partial indemnity scale.

The landlord argued the costs were unreasonable based on the factors in Rule 57.01(1) and suggested a nominal award.

The court rejected the landlord's arguments, noting the plaintiffs achieved substantial success and the costs were not unnecessary or excessive.

The court fixed costs at $40,000 all inclusive.

The Plaintiffs, Yami Talk Catering Management Ltd. (Tenant) and Chenbein Zhong, brought a motion for summary judgment against 2309603 Ontario Inc. (Landlord), Pasofina Canada Corporation, and Zahid Naseer for breach of a commercial lease agreement.

The core dispute centered on the Landlord's failure to secure an exclusive right for the Tenant to operate a Chinese cuisine restaurant in the food court, as stipulated in the lease.

The court found that the Landlord breached this exclusive rights provision, entitling the Tenant to terminate the lease.

The court dismissed the Plaintiffs' claims against Pasofina Canada Corporation and Zahid Naseer, finding no basis to pierce the corporate veil, and also dismissed the Defendants' counterclaim.

The Tenant was awarded damages of $69,897.78 plus pre-judgment interest against the Landlord.