Sarah Ray Ramesh

This commercial lease appeal addressed validity of default and termination notices, the resulting lease termination findings, and related costs rulings.

The court upheld the application judge’s determinations and dismissed both the main appeal and the costs appeal after granting leave on costs.

The Court of Appeal for Ontario dismissed the appeal by Jagtar Dhaliwal and Voxx Sports Inc. from a Superior Court decision upholding an arbitrator’s refusal to recuse himself for bias.

The appellants alleged both a reasonable apprehension of bias and actual bias, based on the arbitrator’s prior involvement with respondents’ counsel and comments about the veracity of Mr. Dhaliwal’s affidavit.

The Court found no merit in either claim, holding that the arbitrator’s conduct did not give rise to a reasonable apprehension of bias and that adverse credibility findings do not, on their own, establish actual bias.

The appeal was dismissed with costs to the respondents.

The court determined that the applicants were not entitled to extend their subleasehold interest in commercial premises for a further five years because they had committed at least three defaults, constituting "habitual default" under the sublease.

The court found that the applicants failed to meet the conditions for extension, including defaults related to unauthorized physiotherapy services, late rent payments, fire code deficiencies, and nonpayment of rent during COVID-19 closures.

The court also held that the equitable remedy of relief from forfeiture did not apply, as the applicants' defaults were not due to circumstances beyond their control.

The application was dismissed, and costs were awarded to the respondents.

The defendant, Hariri Pontarini Architects, brought a motion seeking leave to amend its statement of defence and counterclaim to add a paragraph concerning the plaintiff's prior architects and for an order compelling the plaintiff, Corey Libfeld, to produce a further and better affidavit of documents related to those prior retainers.

The plaintiff opposed the contested amendment and the document production request.

The court dismissed the defendant's motion to add the specific paragraph (8A) to its pleading, finding it irrelevant and scandalous, and also dismissed the request for a further and better affidavit of documents, as the requested documents were not relevant to the issues in the litigation.

Uncontested amendments were granted.

Costs were awarded to the plaintiff.

The franchisors sought leave to appeal two arbitral awards: one finding Marcel Hachem and Eastern Canadian Coffee Company Ltd. to be "franchisor's associates" liable for rescission costs, and another regarding costs.

The franchisees sought court enforcement of these awards.

The court dismissed the franchisors' application for leave to appeal the "franchisor's associate" finding, determining it was a question of fact, not law.

The court also dismissed leave to appeal the costs award, finding that while it raised a question of law, it lacked sufficient importance to the parties.

Consequently, the franchisees' application to enforce the arbitral awards was granted.