CanDeal subleased office space at 50 Bay Street, Toronto, from Grant Thornton (managed by Capservco), with real estate services provided by Cushman & Wakefield.
The office was near Union Station, leading to complaints of noise from idling trains disturbing CanDeal employees.
CanDeal sued for a declaration that the sublease was void due to latent defects (train noise), alleging concealment and misrepresentation by Grant Thornton and negligence and misrepresentation by Cushman & Wakefield.
Ruling:
The court granted summary judgments, dismissing CanDeal’s action. It found no defect, latency, misrepresentation, concealment, or conspiracy. CanDeal had acknowledged the premises' proximity to transportation and inspected the premises. The lease and sublease contained clauses stating Grant Thornton shall not be liable for any disturbances from transportation noise.
Conclusion:
The court found that CanDeal's claims did not hold because the noise was not a latent defect, and there was no evidence of intentional concealment or misrepresentation by the defendants. The noise levels, while sometimes exceeding recommended limits, were part of the acknowledged environment due to the office's location near Union Station. CanDeal had failed to demonstrate the defendants' liability under the terms of the sublease and lease agreement, which explicitly excluded liability for noise disturbances from transportation systems.
Costs:
The court left the matter of costs to be determined if the parties could not agree, with submissions to follow a specified schedule.
