Background:
In Parker Cove Properties Limited Partnership v. Robin Gerow and Carmen Gerow, the dispute arose over subleases for two adjoining properties in a residential subdivision on First Nations reserve lands. Parker Cove Properties Limited Partnership (Parker Cove) held the head lease, and the Gerows were sublessees. During a 2021 wildfire, a mandatory evacuation order was issued, but Robin Gerow defied it, while Carmen Gerow complied. Parker Cove claimed this violated the subleases and sought termination.

Legal Issues:
Parker Cove argued that Robin Gerow’s refusal to evacuate breached the sublease’s requirement to comply with laws, constituting a fundamental breach. They also claimed unpaid rent and unauthorized renovations. The Gerows countered that the breach did not deprive Parker Cove of the entire benefit of the sublease.

Court Findings:
The court held that while Robin Gerow breached the sublease by defying the evacuation order, it was not a fundamental breach, as it did not destroy the contract’s commercial purpose. The judge also ruled that Parker Cove had failed to properly plead fundamental breach.

Costs:
Parker Cove was successful in partially reducing the costs awarded. The court reduced the Gerows' costs from Scale C to Scale B under British Columbia’s cost rules. Special costs were denied to the Gerows.

Conclusion:
The court dismissed Parker Cove’s claim for fundamental breach, allowed the appeal on costs, and awarded standard costs (Scale B) to Parker Cove for the cross-appeal. The Gerows were awarded costs on the main appeal.