Legal Blog

Renewal

Mapleview-Veterans Drive Investments Inc. v. Papa Kerollus VI Inc. (Mr. Sub) 2016 Ont CA

Renewal clause provided for a right of renewal on the same terms as in the lease “save as to the rental rate which shall be the then current rate.” Right of renewal was conditional on the tenant having paid the rent and all other sums payable when due. The court held that the renewal clause was not so uncertain as to be unenforceable; the parties would either resolve the issue as to the current rent or have the dispute resolved by arbitration or in court. Had the clause said that the rate was to be subject to mutual agreement, it would have been void for uncertainty. In this case, the tenant was in arrears of rent for a trivial amount and had been refusing to pay an increase in additional rent because of a dispute; that was enough to disentitle the tenant from engaging the right of renewal.

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