11 May 2023
Bellwoods Brewery Inc. v 1896841 Ontario Limited
In the case of Bellwoods Brewery Inc. v. 1896841 Ontario Limited dated May 11, 2023, Mike Clark and Luke Pestl founded the plaintiff, Bellwoods Brewery Inc., a craft beer brewing company, in 2012. The company experienced substantial success, which prompted plans for expansion. In 2013, Bellwoods enlisted the assistance of Lennard Commercial Realty to locate a new venue.
Defendant 1896841 Ontario Limited, represented by Pat Johnson, sought to lease a portion of its property at 950 Dupont Street in Toronto, a unique building with a large glass box structure. Lennard informed Bellwoods about this opportunity in January 2014. After negotiations, a 20-year lease agreement was signed on May 21, 2015, allowing Bellwoods to rent the glass box and part of the adjoining brick building for various uses, including brewing, dining, retail, and events. Despite the lease agreement, Bellwoods never occupied the space, which led to a legal dispute.
The court found that the Landlord breached the lease agreement by not vacating the leased premises. The court ordered that the Landlord is obligated to pay Bellwoods $6,110,000 in damages, and prejudgment interest on the damages is to be paid by the Landlord, calculated from August 1, 2016, to the date of the judgment.
The Landlord's counterclaim was dismissed, and Lennard's action was also dismissed, with Lennard retaining the right to pursue its commission agreement if Bellwoods were to occupy the leased premises in the future.