The parties brought competing applications seeking the court’s direction regarding the interpretation of provisions in a commercial lease governing the determination of fair market land value for rent recalculation.
The lease required each party to appoint an appraiser and, if the resulting valuations differed by more than ten percent, for the two appraisers to jointly select a third appraiser.
After conflicting valuations triggered the third-appraiser mechanism, the tenant proposed altering the process to appoint a legally trained decision-maker who was not a licensed appraiser.
The court held that the lease clearly required the appointment of a qualified appraiser experienced in valuing commercial property in Toronto and that the proposed alternative would improperly amend the agreement without the landlord’s consent.
The court therefore directed that the previously identified qualified appraiser be appointed to proceed with the appraisal process.