Competing commercial lease applications required interpretation of a negotiated lease governing redevelopment of a heritage property, allocation of a $4 million construction allowance, rooftop rental credits, rent arrears, and rooftop access for telecommunications tenants.
The court applied established contract interpretation principles to require the tenant to account fully for landlord-funded construction work and implied a term requiring repayment of overpaid construction allowance amounts not used for the landlord's work.
The court also held rooftop rent credits were payable from the commencement of the lease, found the landlord had not validly terminated the lease for alleged arrears, and granted relief from forfeiture if needed.
Pre-existing rooftop tenants were held entitled to continued access through the premises on the basis of their leases and easements of necessity, and the tenant was enjoined from interfering.
Success was divided overall, and no costs were ordered between landlord and tenant.