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The court found the commercial tenant breached and repudiated the lease by failing to take occupancy, awarding the landlord damages for lost rent and diminution in property value.
The plaintiffs, a commercial landlord and property owner, brought an action against a tenant and its guarantor for damages arising from the breach and repudiation of a ten-year commercial lease.
The tenant had abandoned the premises and delivered a notice of termination, claiming the lease was frustrated by COVID-19 restrictions and that the landlord failed to timely complete agreed-upon improvements.
The court found that the lease commenced on March 1, 2020, its start date was not conditional on the completion of landlord improvements, and the tenant had repudiated the contract.
Consequently, the court dismissed the tenant's counterclaim for misrepresentation and rescission, and awarded the plaintiffs damages for lost rent, mitigation costs, and the diminution of the property's market value.
The court determined the parameters for valuing a jointly operated auto parts sales agency corporation following the dissolution of the principals' business relationship.
This application, proceeding as a hybrid trial, concerned the valuation of CE Williams Import Export Inc. (the "Corporation"), a company jointly operated by the applicant and respondent.
The court addressed disputes regarding the Corporation's value following the dissolution of the parties' business relationship in 2015.
Key determinations included dismissing the respondent's limitations defense, establishing a 5% commission rate for valuation, excluding revenue from the FCR brake flange DT program, including revenue from the Gen V (Magna) program for the full valuation period, and setting specific income for the Bridgestone fastener and Multimatic E2xx programs.
The court normalized owner salaries at $110,000 and variable expenses at 20% of revenue, and ruled that sales volumes should include all of North America.
A terminal value for the Corporation was excluded.
The court also ordered adjustments in the applicant's favour for assets transferred to the respondent's new company and to equalize expenses.
The parties' experts were directed to re-calculate the Corporation's value based on these findings, with the respondent to account for 50% of the adjusted value plus prejudgment interest.
