The Court of Appeal upheld a declaration that a commercial lease's obligation to purchase survived subsequent renewals.
The appellant, Xylem Canada Company, appealed an application judge's order declaring that an obligation to purchase, set out in a 1996 lease, remained in effect through subsequent lease renewals.
The Court of Appeal dismissed the appeal, finding no palpable and overriding error in the application judge's interpretation of the contractual documents.
The court reiterated that contractual interpretation involves issues of mixed fact and law, entitling the application judge's decision to deference.
Horn Ventures International Inc. v. Xylem Canada Company (ITT Canada Ltd.), 2021 ONCA 341