Kayla Smith

The applicants, who rent water heaters and HVAC equipment to consumers, brought an application for a declaration that they were entitled to the end-of-term lease payments when a customer exercised their right to an early buyout.

The respondent had previously purchased a 10-year stream of future payments under the lease agreements.

The court interpreted the assignment agreement and found that the respondent purchased the assigned payments, which explicitly included income derived from early buyouts.

The application was dismissed.

The plaintiff, Intercity Properties Limited, brought a motion seeking indemnification for fees and costs related to enforcing an encroachment agreement against 1584904 Ontario Inc. and Community First.

The encroachment (a pylon sign) was removed by 1584904 after the application was commenced, rendering the primary relief moot, leaving only the issue of costs.

The court found both parties acted unreasonably, escalating a simple matter.

While 1584904 was more at fault for breaching the agreement and refusing a reasonable initial costs offer, Intercity also acted unreasonably by continuing a Superior Court application for injunctive relief that was no longer needed and by not pursuing less costly self-help remedies or Small Claims Court.

The court awarded Intercity $7,000 in partial indemnity costs against 1584904, finding this amount reasonable and within the contemplation of the parties at an earlier stage of the proceedings.