The parties disputed the interpretation of a rent-reset clause in two 100-year ground leases.
The landlord appealed a Superior Court decision that set aside an arbitral award valuing the lands based on a hypothetical freehold condominium development.
The tenants cross-appealed, arguing the leasehold interest should be valued and seeking a new arbitral panel.
The Court of Appeal dismissed the appeal and cross-appeals, holding that issue estoppel applied from a 1993 decision between the parties, meaning the lands must be valued as a freehold interest but excluding the potential for freehold condominium development because the lands are subject to a lease.
The court also affirmed remitting the matter to the original arbitral panel.
