Rutherford Road Holdings Corp. ("Rutherford Road") purchased Units 9, 10, and 11 from Ocean Sands Developments Limited ("Ocean Sands") at 255B Rutherford Road South, Brampton.
The property was being converted into a condominium. The purchase and lease agreements were dated December 15, 2015, with a one-year lease term starting January 1, 2016.
Dispute arose over "Base Rent" payments for July 1, 2017, to April 14, 2022, when the sale finalized.
Key Issues:
Was Ocean Sands entitled to "Base Rent" for the contested period?
What amount, if any, should Rutherford Road pay as occupation rent due to unjust enrichment?
Findings:
The lease provided for zero Base Rent during its term, with Rutherford Road responsible only for Taxes, Maintenance, and Insurance (TMI).
Ocean Sands proposed $8,000/month Base Rent starting July 1, 2017, via a letter, but this was not agreed to by Rutherford Road, and no invoices or notices were issued during the relevant period.
Ocean Sands’ bookkeeping errors and lack of communication weakened their claim for full Base Rent.
The court deemed occupation rent appropriate, citing unjust enrichment principles.
Decision:
Ocean Sands was awarded occupation rent of $8,000/month for 35 months (July 1, 2017, to April 14, 2022), totaling $316,400 (inclusive of HST).
Costs to be agreed upon or submitted for decision.
