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Misrepresent by Silence

Subway Franchise Restaurants of Canada Ltd. v. BMO Life Assurance Company 2021 Ont CA

The lease had a specific time period, calculated from the lease commencement, for the tenant to renew the term. The tenant was confused as to the start of the lease and notified the landlord that it chose to renew, but asked, if its assumed time period was wrong, the landlord should inform it and it would give a notice in accordance with the lease. The landlord did not reply. The tenant had the date wrong and claimed the landlord should have informed it. The court held that, unless the landlord lied or knowingly misrepresented or contributed to the tenant’ misapprehension, the tenant was out of luck.

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