Garlicky Mediterranean Grill Inc. v. 2715762 Ontario Inc.

Garlicky Mediterranean Grill Inc. v. 2715762 Ontario Inc.

The appeal is dismissed because the application judge properly found the appellant’s email did not meet the contractual/formal requirements to exercise the lease renewal option and those mixed fact-and-law findings are entitled to deference; consequently no option was validly exercised and the landlord was not bound...

Source-derived case information.

Citation
2025 ONCA 248
Parties
Appellant: Garlicky Mediterranean Grill Inc.; Respondent: 2715762 Ontario Inc.
Court
Court of Appeal for Ontario
Jurisdiction
Canada
Judgment Date
2 April 2025
Procedural Posture
Collection / Appeal From Superior Court of Justice (oral Reasons)
Outcome
Appeal dismissed
Legal Topics
Lease Renewal, Option to Renew, Exercise of Option, Costs
Source Language
en
Civil Contract Property Commercial Law Lease Renewal Option to Renew Exercise of Option Costs

Source-derived case record

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Parties

Garlicky Mediterranean Grill Inc.

Appellant

2715762 Ontario Inc.

Respondent

Procedural Posture

Collection / Appeal From Superior Court of Justice (oral Reasons)

  1. 1 Whether the December 8, 2023 email amounted to a valid exercise of the option to renew the lease
  2. 2 Whether the application judge's findings of mixed fact and law attract appellate deference
  3. 3 Whether the landlord was contractually bound to future lease terms absent a valid exercise of the option

Ratio Decidendi

The appeal is dismissed because the application judge properly found the appellant’s email did not meet the contractual/formal requirements to exercise the lease renewal option and those mixed fact-and-law findings are entitled to deference; consequently no option was validly exercised and the landlord was not bound to future lease terms.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed.
  • Costs of the appeal and all prior motions awarded to the respondent on a partial indemnity scale fixed at $12,000 inclusive of disbursements and HST.