The case Pinnacle International (One Yonge) Ltd. v. Torstar Corporation (2024 ONCA 755) revolves around a commercial lease dispute. Pinnacle, the landlord, sued Torstar, the tenant, for failing to pay profits from subleasing part of the third floor of a Toronto building to Collège Boréal, as required by the lease.

Key Issues:

1. Profit Calculation: Under Article 8.1 of the lease, Torstar was required to remit any sublease profit to Pinnacle. Torstar argued it made no profit because it paid more rent to Pinnacle for the entire third floor, including unusable open-air space, than it received from Boréal.
2. Limitation Period: Torstar also argued that Pinnacle's claim was barred by the two-year limitation period under Ontario’s Limitations Act, 2002, while Pinnacle asserted a six-year period under the Real Property Limitations Act.

The lower court ruled in Pinnacle's favor, ordering Torstar to pay over $1.1 million in profits, finding that rent for the unusable space couldn't be deducted and that the six-year limitation period applied.

Appeal Outcome: The Court of Appeal disagreed with the lower court, ruling that:

• Torstar was entitled to deduct the rent for the entire third floor, including the unusable space, in calculating profit.
• The two-year limitation period applied, barring Pinnacle's claim.

The appeal was allowed, and Pinnacle’s claim was dismissed, with costs awarded to Torstar amounting to $25,000.