The applicant municipality sought an order terminating its commercial lease with the respondent cultural center, alleging the respondent breached the lease by refusing to accept a reduction in leased space.
The Superior Court of Justice dismissed the application, finding that the municipality's notice of breach failed to comply with the strict requirements of section 19(2) of the Commercial Tenancies Act as it did not specify the alleged breach.
Furthermore, the court held that the municipality breached its duty of good faith in contractual performance by attempting to use its right to reduce the leased space to circumvent a negotiated six-month notice period for termination.
