Background Facts:
The Pakistan-Canada Association, Inc. ("PCA") leased its property at 12057 88 Avenue, Surrey, B.C. to Great Light Healing Ministries International City of Faith ("Great Light") starting in July 2013. The lease allowed Great Light to use the property for religious purposes, with an option to renew. In 2020, Great Light expanded and renovated the property without securing building permits, extending the building into a neighboring railway right-of-way. PCA claimed these actions breached the lease.

Legal Issues:

• PCA argued Great Light's renovations breached an implied lease term requiring compliance with laws (building permits).
• Great Light argued PCA gave permission for the renovations and bore responsibility for the boundary encroachment due to misinformation about property lines.

Arguments:

• PCA: Great Light’s failure to secure permits and encroachment constituted a fundamental breach, endangering PCA's legal standing and exposing it to third-party liability.
• Great Light: PCA had approved the renovations, knowing permits were not obtained and was responsible for boundary errors.

Outcome:
The court dismissed PCA's petition for termination of the lease, ruling the breaches were serious but not fundamental. PCA’s right to terminate was not upheld. Great Light was awarded costs of $8,000.