The appellant tenant breached a commercial lease by abandoning the premises.
The respondent landlord subsequently leased the property to a new tenant, with a 10-month overlap of the original lease term.
The tenant appealed the trial judge's calculation of damages, arguing the landlord received a benefit from avoiding a lengthy vacancy period.
The landlord cross-appealed regarding the deduction of tax consultant fees and the apportionment of rent-free periods and improvements.
The Court of Appeal dismissed the main appeal, finding the tenant's mitigation argument was not pleaded and relied on speculation.
The cross-appeal was allowed in part, permitting the landlord to deduct the 50% contingency fee paid to a tax consultant to obtain a property tax rebate.