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Consent to Assignment

Tabriz Persian Cuisine Inc. v. Highrise Property Group Inc. 2022 Ont CA

Parties had ongoing litigation as to whether landlord had authorised tenant to install a patio – contrary to the lease. Tenant on three occasions had identified a purchaser for its business and requested landlord’s consent to an assignment of the lease. On the first two occasions, landlord refused consent because tenant had failed to remove the patio. On the third occasion, landlord refused to consider the assignment until the patio was removed and tenant discontinued its litigation. The court agreed that tenant had not demonstrated that landlord’s refusal – to consider the assignment until the patio was removed – was unreasonable. It further held that, even though the 2^nd condition was improper, it was not relevant; the true origin for the refusal was the valid requirement to remove the patio.

Written by Jonathan Speigel, the founding partner of Speigel Nichols Fox LLP, leads the litigation and construction practices.