Todd Storms

The tenant brought a motion for various relief against the landlord, including setting aside a distress sale and lease termination, and seeking relief from paying rent during COVID-19 lockdowns.

The court previously granted the tenant's requests regarding the termination and distress sale but required the tenant to pay post-NOI rent.

On the issue of costs, both parties sought costs.

The court found that success was divided and, given the tenant's continued significant default in rent payments, ordered that no costs be payable by either party.

The tenant filed a Notice of Intention to Make a Proposal under the Bankruptcy and Insolvency Act.

The landlord attempted to terminate the commercial lease for non-payment of post-NOI rent and claimed to have completed a distress sale of the tenant's chattels just prior to the NOI filing.

The tenant brought a motion to set aside the lease termination and the distraint, and sought relief from paying rent during the COVID-19 shutdown.

The court set aside the lease termination, finding the landlord acted precipitously without giving the tenant reasonable time to deliver promised rent cheques.

The court also set aside the distraint, finding the sale was not completed prior to the NOI and did not comply with the Commercial Tenancies Act.

However, the court held the tenant was not relieved from paying post-NOI rent due to the pandemic shutdown.