Metro 1 Development Corp. Ltd. v. Michael Garron Hospital
Metro 1 Development Corporation Ltd.
Law Firm / Organization
Scalzi Caplan LLP
8441553 Canada Ltd. cob Coffee House
Law Firm / Organization
Scalzi Caplan LLP
1916179 Ontario Ltd. cob Athen’s Bakers
Law Firm / Organization
Scalzi Caplan LLP
Michael Garron Hospital (MGH) formerly known as Toronto East General Hospital
Law Firm / Organization
Gardiner Roberts LLP
Lawyer(s)

Alexander Melfi

Summary: The case concerns Metro 1 Development Corporation Ltd. and its subsidiaries’ appeal against a decision denying relief of forfeiture for their commercial leases with Michael Garron Hospital (MGH). Metro 1 had breached its lease, specifically by failing to maintain operation of a Tim Hortons restaurant as required.

Key Points:

  • Lease Requirements: The lease specifically stipulated that Metro 1 was to operate a Tim Hortons at the premises. Despite this clear requirement, Metro 1 argued that it should be allowed to operate a different food service if maintaining a Tim Hortons became unfeasible.
  • Breach of Lease: Metro 1 failed to operate a Tim Hortons, which led MGH to terminate the lease. Metro 1’s subsidiary, Athens, also sought relief from forfeiture but was similarly denied.
  • Court's Decision: The Court of Appeal upheld the decision of the motion judge, confirming that Metro 1 was in breach of the lease by not operating a Tim Hortons as specifically required. The court found no basis to interfere with the motion judge's refusal to grant relief of forfeiture to both Metro 1 and Athens.

Outcome: The appeal was dismissed. The court concluded that the express terms of the lease were clear and unambiguous, requiring the operation of a Tim Hortons restaurant, and that Metro 1 had failed to comply with these terms. The appellants were ordered to pay costs to MGH totaling $22,500.

Court of Appeal for Ontario
COA-23-CV-0555
Real estate
$ 22,500
Respondent