Latisha Cohen

The plaintiff landlord brought a motion for default judgment against the defendant tenant for breach of a lease agreement.

The defendant was noted in default for failing to defend the proceeding.

The court granted judgment to the plaintiff, finding liability based on the deemed admissions in the Statement of Claim and supporting evidence.

Damages were awarded for arrears of rent and loss of bargain for the unexpired term of the lease, totaling $450,528.14, plus interest and costs.

The court was satisfied that the landlord had made reasonable efforts to mitigate its damages.

The Tenant (Augusta Studios Inc.) brought an application seeking declarations that its commercial lease was not properly terminated by the Landlord (8699011 Canada Inc.), that the lease was in effect until July 31, 2027, and that it was not in default.

The Landlord alleged breaches related to subletting the second floor without consent and subletting the basement, which it claimed was not part of the leased premises.

The court found that the basement was included in the lease, consent was not required for the second-floor sublease, and the Landlord failed to provide proper notice of default.

The court concluded the Landlord's termination was unlawful and granted the Tenant the declarations sought, also stating that relief from forfeiture would be granted if the Tenant were found in breach.