Coleman v. Q.R.S. Canadian Corporation Ltd.

Coleman v. Q.R.S. Canadian Corporation Ltd.

Interpreting the covenant in the context of the parties' intention and conduct, the Court held that the lessee's prolonged winter closing of the Main Inn was reasonable under the circumstances and did not constitute a breach of the lease covenant to continually carry on the business of a high-class inn; therefore the appeal was dismissed.

Citation
[1931] SCR 708
Parties
Appellant (defendant): A.B. Coleman; Respondent (plaintiff): Q.R.S. Canadian Corporation Ltd.
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
26 May 1931
Procedural Posture
Appeal Landlord and Tenant Dispute Regarding Lease Interpretation / Final Appeal to the Supreme Court of Canada From the Appellate Division of the Supreme Court of Ontario
Outcome
Appeal dismissed with costs.
Legal Topics
Lease Interpretation, Covenant to Conduct Business, Seasonal Closure, Breach of Covenant
Source Language
English
Landlord and Tenant Contract Property Lease Interpretation Covenant to Conduct Business Seasonal Closure Breach of Covenant

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Parties

A.B. Coleman

Appellant (defendant)

Q.R.S. Canadian Corporation Ltd.

Respondent (plaintiff)

Procedural Posture

Appeal Landlord and Tenant Dispute Regarding Lease Interpretation / Final Appeal to the Supreme Court of Canada From the Appellate Division of the Supreme Court of Ontario

Legal Issues

  1. 1 Whether seasonal closing of part of hotel premises constituted a breach of the lease covenant to "continually conduct and carry on the business of a high-class Inn"
  2. 2 How to interpret the covenant in light of the parties' intention and conduct

Ratio Decidendi

Interpreting the covenant in the context of the parties' intention and conduct, the Court held that the lessee's prolonged winter closing of the Main Inn was reasonable under the circumstances and did not constitute a breach of the lease covenant to continually carry on the business of a high-class inn; therefore the appeal was dismissed.

Court Disposition

Appeal dismissed with costs.

Orders

  • Appeal dismissed with costs.
  • Judgment below restored: plaintiff entitled to $2,500 and interest less $102.50 allowed on counterclaim.