Seppi J.

The appellants appealed a Small Claims Court judgment ordering them to pay rent arrears and accelerated rent under a commercial lease.

The appellants argued the lease was void ab initio because the zoning bylaw did not permit their auto leasing business without a minor variance or operating in conjunction with an auto repair shop.

The Divisional Court dismissed the appeal, finding that the lease expressly placed the obligation on the tenant to obtain all necessary permits and comply with zoning laws at its own expense.

The tenant's failure to seek a variance or arrange its business to comply with the bylaw did not render the contract void.

The appellant, Versailles Convention Centre, appealed a Small Claims Court decision dismissing its $10,000 claim against the respondent for breach of contract regarding a convention hall booking.

The trial judge found the appellant's witness not credible and accepted the respondent's evidence that the parties mutually agreed to cancel the tentative booking.

The trial judge also found the cancellation clause to be an unenforceable penalty rather than a genuine pre-estimate of damages.

The Divisional Court upheld the trial judge's findings of fact and credibility, concluding there was no reversal of the burden of proof and that the damages claimed were arbitrary and excessive.

The appeal was dismissed.