The applicant landlord, Java Investments Limited, applied for a declaration that its commercial lease with the tenant, Tkaronto Trees, was lawfully terminated, and sought to set aside a municipal barring order closing the premises due to unlicensed cannabis sales.
The tenant argued it had an indigenous sovereign right to operate the dispensary and was not subject to provincial cannabis laws.
The court held that provincial laws applied to the premises and implied terms into the lease requiring compliance with provincial law and prohibiting the tenant from exposing the landlord to prosecution.
Because the tenant breached these implied terms, the court declared the lease validly terminated, denied relief from forfeiture, set aside the barring order, and granted a permanent injunction and eviction order.
