Background: Hanch Enterprises Ltd. purchased and renovated a property to lease to Simply Ballet Performing Arts Society. They signed an Offer to Lease but failed to finalize a formal lease agreement. Simply Ballet moved in, and the relationship deteriorated. Hanch Enterprises sought a writ of possession and damages for trespass, while Simply Ballet counterclaimed, alleging breaches of the Offer to Lease.

Legal Arguments/Issues: Simply Ballet alleged two main issues. First, they claimed Hanch Enterprises breached the confidentiality clause of the Offer to Lease by disclosing confidential information. Second, they argued Hanch Enterprises unreasonably withheld consent for the assignment of the lease, leading to the collapse of a planned asset sale.

Held: The court found no direct evidence that Hanch Enterprises breached the confidentiality clause, as Simply Ballet could not prove any gossip originated from Hanch Enterprises' disclosure. However, the court ruled that Hanch Enterprises unreasonably withheld consent for the lease assignment. The decision to sell the property instead of consenting to the assignment was deemed unreasonable because selling and assigning were not mutually exclusive options.

Costs/Damages Awarded: Simply Ballet’s claims for substantial damages were dismissed due to insufficient evidence of losses in revenue, reputation, and goodwill. Nonetheless, the court awarded Simply Ballet nominal damages of $1,000 for the breach of contract related to the unreasonable withholding of consent. Thus, Simply Ballet’s substantial claims were not upheld, resulting in a minimal award.