R. Kwan

The applicant sought substantial indemnity costs following a successful application for declaratory relief regarding a commercial lease renewal.

The applicant argued that the respondents' unconscionable conduct, which grounded a finding of proprietary estoppel, and a settlement offer justified an elevated costs scale.

The court held that substantial indemnity costs were not warranted, as there was no litigation misconduct and the settlement offer was delivered too late for meaningful consideration.

Costs were awarded on a partial indemnity scale and fixed at $22,500.

The applicant commercial tenant sought a declaration that her lease was renewed for a further five-year term, despite failing to provide written notice as required by the lease.

The tenant argued that the landlord's principals had orally assured her that the lease would be renewed without further action on her part, leading her to rely on these assurances to her detriment.

The court found that the elements of proprietary estoppel were met, as the landlord had encouraged the tenant's mistaken belief to take unconscionable advantage and regain possession of the premises.

The application was granted, and the lease was declared renewed.