Metro Ontario Real Estate Limited v. Hillmond Investments Ltd.
Metro Ontario Real Estate Limited
Law Firm / Organization
Camelino Galessiere LLP
Lawyer(s)

Linda Galessiere

Hillmond Investments Ltd. carrying on business as Central Parkway Mall
Metro Ontario Inc.
Law Firm / Organization
Camelino Galessiere LLP
Lawyer(s)

Linda Galessiere

Key Issues and Findings:

  1. Lease Dispute and Rent Calculation:

    • The dispute arose from a disagreement about rent calculations for a grocery store acting as an anchor tenant in a shopping mall. The lease, dating from 1978, was renewed multiple times.
    • The tenant's interpretation of rent calculation was upheld, dismissing the landlord's claim for unpaid rent and rejecting the landlord’s "Rent Paid Theory."
  2. Common Area Maintenance (CAM) Charges:

    • The landlord knowingly inflated CAM invoices in several ways, including improperly charging for cleaning a private office and manipulating gross leasable area calculations.
    • The court found these practices unjustified and required recalculated CAM charges, denying interest on unpaid amounts due to the landlord’s misconduct.
  3. Roof Replacement Costs:

    • The tenant replaced the roof, which the court found to be the landlord's responsibility. The tenant was entitled to reimbursement.
  4. Unjust Enrichment:

    • The tenant overpaid rent by $493,269.66 in the two years prior to initiating the claim, enriching the landlord without justification. The court awarded this amount but barred older claims under the statute of limitations.
  5. Equitable Set-Off:

    • Both parties sought equitable set-off (crediting amounts owed against each other). The court declined both requests due to lack of sufficient connection between claims.

Damages Awarded:

  • Total: $1,359,799.88, comprising:
    • $452,810.09 for roof replacement.
    • $767,754.07 for rent overpayments.
    • $139,235.72 for CAM charge overpayments.

Costs:

  • The parties were instructed to file submissions if unable to agree on costs, with deadlines for submissions set for December 2024.
Superior Court of Justice - Ontario
CV-09-375202
Civil litigation
$ 1,359,800
Plaintiff