Phillip L. Sanford

The Landlord sought leave to appeal an arbitration award concerning the rent reset for a 99-year ground lease, and alternatively, to set aside the award for excess of jurisdiction.

The arbitration tribunal had valued the "Demised Premises" at $63.3 million, while the Landlord argued for $95 million.

The court granted leave to appeal but dismissed the appeal, finding no error in the Majority's interpretation of the lease or its valuation mandate.

The court also dismissed the application to set aside the award, holding that the Landlord's arguments were an attempt to re-litigate the merits under the guise of a jurisdictional challenge.

Parc-IX Limited applied to set aside an arbitral award, arguing the arbitrator exceeded jurisdiction by failing to consider legal regulations (Rental Replacement Unit policy) affecting property valuation under a ground lease.

Manufacturers Life Insurance Company cross-applied to enforce the award.

The court dismissed Parc-IX's application, finding the arbitrator did consider the regulations but determined they did not apply on the facts, acting within jurisdiction.

The application to set aside the costs award was also dismissed, affirming that costs are determined on the facts of each case.

The applicant landlord sought a declaration regarding the interpretation of a rent re-set clause in a 99-year commercial ground lease.

The clause required the property to be valued 'as if it were unimproved'.

The landlord argued this meant the land should be valued as if it were unencumbered and available for freehold condominium development.

The respondent tenant argued the valuation must account for legal restrictions preventing such development.

The court held that the landlord was issue estopped from re-litigating the interpretation decided in a 1990 arbitration.

Alternatively, the court found that the correct interpretation of the lease required the valuation to account for the legal encumbrances restricting the tenant's ability to develop the property.