Real Property – Landlord and Tenant – Forfeiture and re-entry
Commercial lease stated that landlord had right to re-enter when tenant was in default of payment of rent, whether lawfully demanded or not, and such default continued for period of seven consecutive days following written notice. Landlord issued notice of default and made demands for rent arrears. Landlord ultimately purported to terminate lease. Tenant brought application for, inter alia, declaration that notice of termination was null and void. Determination was made that landlord improperly terminated lease; landlord was to release tenant's property; trial of issue ordered regarding tenant's damages. Parties agreed to specific termination provision. Landlord had to provide written notice; if default continued for seven consecutive days after notice, landlord had right to re-enter. Landlord breached lease by re-entering premises prior to expiry of notice period. Because landlord unlawfully terminated lease, steps it took to lock tenant out, put tenant's property into trailers, store it and request that that tenant pay costs of doing so as condition of obtaining property was unlawful. Landlord did not have storer's lien.
911 Priority Corporation v. Murray (2019), 2019 CarswellOnt 9110, 2019 ONSC 3585, M.E. Vallee J. (Ont. S.C.J.).
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