Jenna Kara

The applicant sought a declaration that it had provided a valid and enforceable notice of extension under a 2015 lease.

The court dismissed the application, finding that the applicant and respondent had entered into a new binding agreement on November 24, 2021, which superseded the original lease terms.

Consequently, the applicant could not extend the 2015 lease by notice of extension and was ordered to pay past due rent and costs to the respondent.

At a case conference, the defendants sought to schedule a short motion to strike the plaintiff's claim in its entirety.

The court declined to hear the substantive motion to strike at the case conference, noting that while Rule 50.13 allows for procedural orders and some interlocutory relief to expedite matters, it is inappropriate to dismiss an action entirely without the benefit of factums or case law.

The case conference was adjourned to allow the parties to consider their options, including a potential summary trial.

Following a finding of civil contempt against the defendant for repeatedly forging bank records and lying under oath, the court held a penalty hearing.

Applying criminal sentencing principles, the court weighed aggravating factors, including the deliberate and repeated nature of the deceit, against mitigating factors such as the defendant's eventual remorse and lack of prior record.

The court determined that a significant costs award was the appropriate sanction to punish and deter the conduct, ordering the defendant to pay $400,000 as a penalty, plus $44,118.46 for the costs of the hearing on a substantial indemnity basis.