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Franchisor wrongfully terminated franchise without contractual notice; franchisee reinstated.
A franchisee brought an application seeking reinstatement of its franchise after the franchisor terminated the franchise agreement for failure to maintain an approved voicemail system.
The court found the franchisor failed to comply with the contractual termination provisions requiring thirty days’ notice to cure a default.
The franchisor’s reliance on a prior settlement agreement to justify immediate termination was rejected, and the alleged breach did not justify bypassing the contractual notice period.
The court ordered immediate reinstatement of the franchise and possession of the leased premises, with damages to be determined at trial.
The court further held that, had termination been valid, relief from forfeiture would have been appropriate given the disproportionate loss relative to the alleged default.
Lockout and retention of tenant goods constituted illegal distress after lease forfeiture.
Commercial tenants applied for relief after their landlord terminated a lease by changing the locks and refusing access to goods left in the premises unless alleged rent arrears were paid.
The court held that changing the locks effected a forfeiture of the lease and that a landlord cannot simultaneously exercise forfeiture and distress.
Retaining the tenants’ goods as leverage for rent constituted excessive and illegal distress under the Commercial Tenancies Act.
The court found the tenants had not abandoned the property and that the landlord’s conduct was wrongful and potentially oppressive.
Liability was established and a trial of the issue was ordered to determine general, special, and punitive damages, including possible lost profits.
