Osman Imtiaz Ali

The Court of Appeal for Ontario dismissed the appeal by Garlicky Mediterranean Grill Inc., finding no error in the application judge’s conclusion that the appellant’s email correspondence did not amount to the exercise of an option to renew the lease.

The court held that the findings below were entitled to deference and awarded costs to the respondent.

This appeal arose from a failed commercial real estate transaction where the appellants (buyers) failed to close and alleged fundamental breaches by the respondent (seller).

The motion judge granted partial summary judgment on liability in favour of the seller.

The Court of Appeal dismissed the appellants' motion for fresh evidence and their appeal, affirming the motion judge's finding that the alleged breaches by the seller were not fundamental and that the buyers had breached the agreement by failing to close.