The appellant and respondent entered into an agreement to sublease commercial office space.
Due to construction delays, the anticipated occupancy date was pushed back by approximately six weeks.
The respondent treated this anticipated delay as a fundamental breach and repudiated the agreement, subsequently leasing cheaper space elsewhere.
The appellant accepted the repudiation, mitigated its damages by subleasing to third parties at a lower rate, and sued for the difference.
The trial judge dismissed the claim, finding the appellant in fundamental breach.
The Court of Appeal allowed the appeal, holding that a six-week delay in a three-year lease did not deprive the respondent of substantially the whole benefit of the contract and therefore did not constitute a fundamental breach.
Judgment was granted to the appellant for its losses.