K. Chaytor

The applicant tenant sought a declaration that it validly exercised its option to renew a commercial lease.

The respondent landlord brought a cross-application claiming the tenant was in material default for failing to pay over $60,000 in back taxes, thereby voiding the renewal option.

The court found that under the lease, taxes were included in 'Operating Costs' and required an annual reconciliation before becoming payable.

Because the landlord had not provided this reconciliation, the tenant's obligation to pay had not crystallized, meaning the tenant was not in default when it renewed the lease.

The court also ruled that the landlord's claims for taxes from 2014 and earlier were statute-barred, and that the tenant's proportionate share must be calculated based on the entire building's square footage, not just the commercial area.

The plaintiff, a real estate developer, moved for leave to register a certificate of pending litigation (CPL) against a property purchased by the defendants.

The plaintiff alleged the defendants used its confidential strategic development plan to acquire the property, breaching a confidentiality agreement, and sought a constructive trust.

The court found the plaintiff raised a triable issue regarding an interest in the land based on breach of confidence and unjust enrichment.

However, the court declined to grant the CPL, finding the property was not unique, damages were an adequate and calculable alternative remedy, and the potential harm to the defendants' financing outweighed the harm to the plaintiff.