Subway Franchise Restaurants of Canada Ltd. appealed the dismissal of its application for relief from forfeiture after failing to exercise a lease renewal option within the specified timeframe.
Subway argued that BMO Life Assurance Company, the landlord, breached its duty of good faith by remaining silent when Subway inquired about the lease termination date, which Subway had incorrectly diarized.
The Court of Appeal upheld the application judge's decision, finding that BMO did not lie, mislead, or actively contribute to Subway's misapprehension.
The court distinguished the facts from the Supreme Court's decision in *C.M. Callow Inc. v. Zollinger*, emphasizing that a duty to correct a misapprehension only arises if the party contributed to it.
Subway had access to the correct termination date via an estoppel certificate and failed to make diligent efforts to comply with the lease terms.
