Court File and Parties

COURT OF APPEAL FOR ONTARIO DATE: 20210716 DOCKET: C67449

Roberts, Zarnett and Sossin JJ.A.

BETWEEN

Paletta International Corporation Plaintiff (Respondent)

and

Liberty Freezers London Ltd. Defendant (Appellant)

Counsel: Kim G. Ferreira and Asad Ali Moten, for the appellant Robert C. Dunford and Sarah Wouters, for the respondent

Heard: January 27, 2021 by video conference

On appeal from the judgment of Justice Dale Parayeski of the Superior Court of Justice, dated August 26, 2019.

Reasons for Decision

[1] By reasons dated June 4, 2021, the appeal was allowed in part with respect to the respondent’s damages. In accordance with our invitation, the parties have made further submissions respecting the issues of rent differential damages and trial costs.

[2] The respondent submits that it has incurred rent differential damages in the amount of $50,827.83, plus post-judgment interest, because of the appellant’s breach of the lease.

[3] We agree with the appellant’s position that the respondent has not suffered any damages. The $200,000 deposit that the appellant forfeited to the respondent because of the breach must be deducted from the respondent’s damages. As a result, we order that no rent differential damages are payable.

[4] The parties have resolved the issue of the trial costs. They have agreed that the trial judge’s April 15, 2020 costs award in favour of the respondent in the amount of $300,000 is set aside and that each party shall bear its own trial costs. No further order is required.

“L.B. Roberts J.A.”

“B. Zarnett J.A.”

“L. Sossin J.A.”