J. Chen

The court issued a supplementary endorsement reconsidering its prior decision to grant leave to appeal.

The initial decision granted leave to appeal an injunction order concerning a restrictive covenant in a commercial lease.

The reconsideration was prompted by an oversight where responding and reply materials were not initially put before the judge.

After reviewing the full record, the court affirmed its decision to grant leave to appeal, finding reasons to doubt the correctness of the motions judge's interpretation of the restrictive covenant and its exception, and the application of the RJR Macdonald test regarding irreparable harm and delay.

The court also noted the importance of the issues due to the common use of restrictive covenants in commercial leases.

Costs were reserved to the Divisional Court or to be fixed by the judge upon written submissions.

Easyfinancial Services Incorporated (Easyfinancial) sought leave to appeal an injunction granted by Andre, J., which required 7724934 Canada Inc. to comply with a restrictive covenant in its lease with EZMoney Tario Inc., preventing Easyfinancial from operating its business in Kingspoint Plaza.

Easyfinancial argued the motions judge erred in interpreting the restrictive covenant, assessing irreparable harm, applying assumption of risk over balance of convenience, and failing to consider EZMoney's delay.

The court found reason to doubt the correctness of the original order on these grounds and granted leave to appeal, noting the importance of restrictive covenants in commercial leases beyond the immediate parties.