This case involved two applications concerning the renewal of a twenty-year ground lease between a landlord, North Elgin Centre Inc., and its tenant, McDonald’s Restaurants of Canada Limited.
McDonald's had given notice to renew but failed to either revoke its intention or elect arbitration within the stipulated nine-month period when rent negotiations stalled.
The landlord sought a declaration that the lease was terminated due to McDonald's non-compliance with the renewal provision.
McDonald's sought a declaration that the lease was renewed and an order for arbitration.
The court found that McDonald's did not strictly comply with the renewal provision.
While the landlord's conduct initially constituted a waiver of strict compliance, this waiver was effectively revoked by clear communication.
McDonald's subsequently failed to elect arbitration within a reasonable time and was not entitled to relief from forfeiture.
The court granted the landlord's application, declaring the lease terminated, and dismissed McDonald's application.
A 90-day stay of judgment was granted.