The plaintiff landlord sued the tenant and guarantor for unpaid rent after the defendants vacated leased commercial premises before the lease term expired.
The defendants alleged they were induced to enter the lease by negligent misrepresentations regarding the presence of physicians in the building and the expected volume of patient referrals.
Applying the principles for negligent misrepresentation from Queen v. Cognos, the court held that no actionable misrepresentation was established and that the alleged statements were either unproven, not relied upon, or constituted expectations rather than guarantees.
The court also noted that the written lease contained an entire agreement clause negating extraneous representations.
The defendants voluntarily assumed the business risk and the landlord had taken reasonable steps to mitigate damages.
Judgment was granted for the plaintiff for the outstanding rent and interest.