Context: Aphria Inc. repudiated its lease with The Canada Life Assurance Company et al., arguing the Landlord had a duty to mitigate damages.
Key Findings:
The court upheld the precedent from Highway Properties Ltd. v. Kelly, Douglas and Co. Ltd., ruling that landlords are not obligated to mitigate damages if they choose to treat the lease as continuing.
Section 19.03 of the lease did not cap damages when the Landlord maintained the lease.
Aphria was ordered to pay $638,171.40 for unpaid rent up to November 13, 2022, plus interest. Future rent claims were deferred. Aphria’s counterclaim was dismissed.
2024 ONSC 5901
Motion: Aphria sought corrections for rent and interest calculations.
Outcome:
The court clarified that $638,171.40 reflected rent arrears up to November 13, 2022, correcting an earlier error that referenced June 15, 2023. No adjustment to the judgment amount was made.
Pre-judgment interest was upheld as calculated by agreement between counsel, rejecting Aphria’s request for recalculation.
No costs were awarded for the motion due to divided success.
Final Result
Aphria is liable for $638,171.40 for rent up to November 13, 2022, plus interest. The Landlord retains the right to claim further rent as it accrues. Appeals are ongoing.
