The applicants, a tenant and its sole shareholder, sought reinstatement of their commercial lease after the respondent landlord locked them out.
The landlord alleged breaches related to staff conduct (public intoxication, nuisance) and purported to terminate the lease.
The court found that the landlord failed to comply with the mandatory notice requirements under section 19(2) of the Commercial Tenancies Act, rendering the termination unlawful.
Alternatively, the court would have granted relief from forfeiture under section 20(1) of the Act due to the disproportionate nature of the termination, the non-wilful breach, and the landlord's heavy-handed conduct.
The lease was declared to be in full force and effect, and the applicants were awarded damages equivalent to four months' rent.
SCJSuperior Court of JusticeFeb 26, 2024