A tenant obtained summary judgment against a landlord for recovery of losses arising from a fire at leased premises under a commercial lease.
The landlord appealed, and the Court of Appeal allowed the appeal, finding that the motion judge erred in interpreting the lease by failing to apply binding appellate authority regarding contractual allocation of risk, failing to assign meaning to all contested lease terms, and ruling that the tenant's breach of its insurance covenant did not bar its subrogated claim.
The Supreme Court of Canada remanded the matter for reconsideration in light of Ledcor Construction.
On remand, the Court of Appeal affirmed its original decision, holding that the correctness standard of review applied to extricable questions of law within the motion judge's interpretation of the negotiated lease.