Frego Construction Incorporated v. Mary Lee Candies Limited

Frego Construction Incorporated v. Mary Lee Candies Limited

The prohibition applied only to the land expressly described as the 'Centre' in the lease; the Laura Secord store was outside those boundaries as found by the trial judge and two dissenting appellate judges, therefore there was no breach and the lease could not be annulled.

Citation
[1963] SCR 429
Parties
Defendant Appellant: Frego Construction Incorporated; Plaintiff Respondent: Mary Lee Candies Limited
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
22 March 1963
Procedural Posture
Civil Appeal (lease Dispute) / On Appeal to the Supreme Court of Canada From the Court of Queen's Bench, Province of Quebec
Outcome
Appeal allowed; action dismissed with costs.
Legal Topics
Restrictive Covenants, Exclusivity Clause in Lease, Lease Interpretation, Annulment of Lease
Source Language
English
Property Law Real Property Contract Law Restrictive Covenants Exclusivity Clause in Lease Lease Interpretation Annulment of Lease

Case Brief

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Parties

Frego Construction Incorporated

Defendant Appellant

Mary Lee Candies Limited

Plaintiff Respondent

Procedural Posture

Civil Appeal (lease Dispute) / On Appeal to the Supreme Court of Canada From the Court of Queen's Bench, Province of Quebec

Legal Issues

  1. 1 Whether the lease prohibition against another candies-and-nuts business was breached
  2. 2 Whether the prohibition applied to the leased premises outside the described 'Centre'
  3. 3 Whether annulment of the lease was an appropriate remedy

Ratio Decidendi

The prohibition applied only to the land expressly described as the 'Centre' in the lease; the Laura Secord store was outside those boundaries as found by the trial judge and two dissenting appellate judges, therefore there was no breach and the lease could not be annulled.

Court Disposition

Appeal allowed; action dismissed with costs.

Orders

  • Appeal allowed
  • Action dismissed with costs throughout