Appeal allowed; ambiguous letter agreement drafted by landlord did not remove tenant's lease renewal right.
The appellant tenant appealed a decision finding that a letter agreement removed its right to renew a commercial lease.
The Court of Appeal allowed the appeal, holding that the letter agreement did not expressly set aside the renewal clause and that a provision requiring good faith negotiation for a five-year lease was ambiguous.
Applying the doctrine of contra proferentem against the respondent landlord who drafted the agreement, the court concluded the renewal right remained in place.
The court also noted the application judge failed to provide reasons for her decision.
Fashion Mill Canada Ltd. v. Westdale Construction Co. Limited, 2003 ONCA 13893