The defendant commercial tenant brought a Rule 21 motion to determine a question of law, arguing that the commercial lease agreement allocated the risk of loss from an oil spill to the plaintiff landlord, thereby barring claims in negligence and contract.
The court reviewed the lease provisions and the Supreme Court of Canada trilogy on the allocation of risk in commercial leases.
The court found no clear language in the lease absolving the tenant of liability for its own negligence, nor any evidence the tenant paid increased insurance premiums.
The motion was dismissed, with the court also declining to dismiss the motion solely on the basis of the defendant's delay in bringing it.
