A dispute arose between a commercial landlord and tenant concerning the tenant’s attempt to exercise a lease renewal option and alleged arrears of additional rent.
The landlord refused renewal and ultimately locked the tenant out, causing a planned sale of the restaurant business to collapse.
The motion judge granted summary judgment for the tenant, awarding damages for loss of the business sale, arbitration and settlement expenses, the security deposit, and punitive damages, and dismissed the landlords’ counterclaim.
The landlords appealed on multiple grounds including refusal of an adjournment, improper notice of renewal, and alleged rent default.
The Court of Appeal rejected each ground and upheld the summary judgment.
