The plaintiffs, commercial tenants, obtained an interim interlocutory injunction prohibiting the defendant landlord from forfeiture actions.
The landlord subsequently sought to set aside the injunction, while the tenants sought its continuation pending a summary judgment motion regarding the enforceability of minutes of settlement that purportedly amended the lease.
The court applied the RJR-MacDonald test, finding a serious issue to be tried regarding the minutes of settlement, irreparable harm to the tenants if the injunction was not continued, and that the balance of convenience favoured continuation.
The court dismissed the landlord's motion to set aside the injunction and ordered its continuation until the summary judgment motion, with the tenants providing undertakings for damages.