J. Manger

The applicant tenant, operating a supermarket, sought a declaration and permanent injunction to prevent the respondent landlord from constructing a new LCBO building on the shopping center's parking lot.

The applicant argued the construction would eliminate parking spots and alter access, breaching its proprietary rights under a 1971 lease as amended.

The court found the lease granted the applicant a proprietary interest in the parking area and minimum parking spots.

The court rejected the landlord's arguments based on estoppel and delay.

Concluding that damages would be an inadequate remedy for the prospective breach of a proprietary right, the court granted the declaration and a permanent injunction prohibiting the construction.

The plaintiffs previously obtained an ex parte interim Mareva injunction against the defendants.

The defendants retained counsel and sought time to respond, while filing an affidavit stating the injunction had frozen their business and personal accounts, preventing the operation of their mortgage brokerage and payment of personal expenses.

On consent, the court extended the injunction to September 20, 2021, and varied its terms to exempt the business accounts and allow the defendants to access personal accounts for living expenses.