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Because the lease expressly reserved ownership and title in the lessor and contained an indemnity clause allocating the risk of loss to the lessee, and because the insurance payout did not overcompensate the lessor for its loss, the lessor was entitled to the insurance proceeds and the claimant had no entitlement to any portion of the settlement.
Source excerpt
The Court of Appeal held the lease amendment and master lease could be read together, so the lessee was deemed to have elected to purchase and owed the shortfall.
The court dismissed a petition to rectify a lease renewal clause, finding no convincing proof of a shared intention that renewal rent be 10% of market value.
The court interpreted a commercial equipment lease and held that the lessee could return the equipment at lease expiry unless another end-of-term option was validly elected.
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