The Landlord, Niagara Falls Shopping Centre Inc., brought a motion for summary judgment against its tenant, LAF Canada Company, for unpaid rent during government-mandated COVID-19 closures.
LAF counterclaimed, seeking rent abatement based on force majeure, frustration of contract"damage or destruction" under the lease, and unjust enrichment.
The court granted the Landlord's motion, finding that the force majeure clause did not excuse rent payment as financial inability was explicitly excepted and payment could cure the failure to perform.
The frustration defense was rejected because the event was contemplated by the force majeure clause.
The "damage or destruction" claim was dismissed as it required physical alteration to the property, not merely inability to use due to the virus.
The unjust enrichment claim failed as the lease provided a juristic reason for the enrichment.
