This appeal concerned the interpretation of a commercial lease for refrigerated premises and the calculation of damages for breach of contract.
The appellant tenant challenged the trial judge's findings on lease certainty, the ascertainability of the commencement date based on "substantial completion," and the quantum of damages.
The Court of Appeal upheld the trial judge's finding that the lease was valid and that the tenant was in breach for failing to take possession.
However, the Court found a palpable and overriding error in the trial judge's determination of the lease commencement date, ruling that "substantial completion" occurred later, on the date of CFIA registration, not an earlier date based on general occupancy readiness.
This error led to a recalculation of damages, with several categories of damages (lost rent, taxes, utilities, maintenance, administrative fees) being set aside.
The Court also set aside a commission settlement award, finding the landlord failed to prove it incurred the loss.
The appeal was allowed on the issue of damages, but otherwise dismissed, with costs awarded to the appellant.