Canada Case Law

Blankstein v. Hayes Davis Investments Inc.

Court

Supreme Court of British Columbia

Summary judgment dismissed because material triable issues exist: evidence supports that the Option Agreement may be intimately connected to the services agreement (Sail Labrador) and factual disputes remain about whether defendant's conduct hindered exercise or justified equitable relief to excuse non-compliance; these issues cannot be resolved on a Rule 9-6 application.

Source excerpt

• Option agreements
• Specific performance
• Failure of consideration
• Summary judgment
• Relief from forfeiture
• Substantial non-performance

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Hong v. Yin

Court

British Columbia Court of Appeal

The settlement provision allowing immediate entry of judgment on default is an acceleration clause, not a forfeiture, and s.25 of the Law and Equity Act applies only to covenants in a mortgage of land or agreements for sale of land; because the settlement agreement did not create a legal or equitable mortgage or an agreement for sale and the CPL was not a pledge created by the agreement, relief from forfeiture under s.24/25 was unavailable; alternatively, even if available, the appellants failed to satisfy the discretionary criteria for relief.

Source excerpt

• Relief from forfeiture
• Acceleration clause
• Equitable mortgage
• Consent judgment
• Certificate of pending litigation
• Discretionary equitable relief

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Mitchell v. Perry

Court

Supreme Court of British Columbia

The court ordered release of a $50,000 real estate deposit to the sellers, rejecting the buyers’ claims for frustration of contract and relief from forfeiture.

• Forfeiture of deposit
• Relief from forfeiture
• Frustration of contract
• Damages
• Summary trial
• Forfeiture-of-deposit

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Hong v. Yin

Court

British Columbia Court of Appeal

The appeal from a BC Supreme Court order stayed execution of a consent judgment and refused security for costs, pending determination of the appeal.

• Relief from forfeiture
• Stay of execution
• Security for costs
• Consent judgment
• Acceleration clause
• Law and equity act s.25

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Taisheng International Investment Services Inc. v. Terrace (City)

Court

Supreme Court of British Columbia

Summary trial over a $6.18 million construction deposit. The court held Terrace could retain the deposit as security after Taisheng failed to develop the lands.

• Deposit/security
• Forfeiture
• Penalty clause
• Contract interpretation
• Option to purchase
• Relief from forfeiture

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Kebet Holdings Ltd. v. First Industries Corporation

Court

Supreme Court of British Columbia

The court held that a lease termination clause for “assignment or subletting” did not capture a share sale or change of control, and the tenant had not repudiated the lease.

• Lease interpretation
• Assignment and subletting clauses
• Change of control
• Repudiation
• Termination clause
• Relief from forfeiture

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Yin v. Hong

Court

Supreme Court of British Columbia

The court dismissed a bid for relief from forfeiture after a settlement default, holding the judgment clause was an acceleration clause and s. 24 LEA did not apply.

• Relief from forfeiture
• Acceleration clause
• Consent judgment
• Certificate of pending litigation (cpl)
• Execution and garnishment
• Unclean hands

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Grewal v. Dentalcorp Health Services Ltd.

Court

Supreme Court of British Columbia

The court dismissed Dentalcorp’s summary trial application in a commercial lease dispute, finding the issues too fact-intensive, credibility-driven, and intertwined for summary resolution.

• Lease termination
• Relief from forfeiture
• Summary trial (rule 9-7)
• Declaratory relief
• Credibility and evidence
• Remedies

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100 Bloor Street West Corporation v. Barry's Bootcamp Canada Inc.

Court

Court of Appeal for Ontario

Article 6.3 of the lease requires the landlord to apply a single consistent method to calculate the tenant’s realty tax liability (including first determining parking garage taxes), and the landlord’s mixing of methods was an unreasonable exercise of contractual discretion; the appeal of the motion decision is dismissed. However, the motion judge erred in awarding substantial indemnity costs based on findings of reprehensible litigation conduct; the costs award was excessive and is varied to a substituted cumulative award (legal fees $300,000 plus disbursements $125,706.30, total $425,706.30).

Source excerpt

• Lease interpretation
• Realty tax apportionment
• Reasonableness of contractual discretion
• Substantial indemnity costs
• Promissory estoppel
• Relief from forfeiture

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2853753 Ontario Inc. v. Prive Developments Corp.

Court

Court of Appeal for Ontario

The Court held the application judge did not err: there were no material facts in dispute warranting a trial; the fraud allegations were irrelevant to enforcement and did not impede payment; the respondents did not breach good faith under Wastech; and the $500,000 late‑payment clause was not disproportionate or unconscionable (constituting less than 10% of the settlement), so the settlement and penalty were enforceable; appeal dismissed.

Source excerpt

• Enforceability of settlement agreements
• Penalty clauses and liquidated damages
• Good faith in contract performance
• Unconscionability
• Relief from forfeiture
• Procedure: application vs action

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