The Ontario Court of Appeal upheld the motion judge’s decision granting Canada Life Assurance Company (Landlord) $638,171.40 plus interest for unpaid rent from Aphria Inc. (Tenant).
The court rejected Aphria’s argument that the Landlord had a duty to mitigate damages after the Tenant repudiated the lease. Citing established precedent in Highway Properties, the court affirmed that landlords maintaining a lease after tenant repudiation are not required to mitigate.
The court also interpreted the lease to conclude that the two-year rent cap under section 19.03 did not apply because the Landlord had not terminated the lease.
The Tenant’s cross-motion to limit damages to two years of rent was dismissed, and the appeal on both grounds was denied.
2025 ONCA 21
Following the dismissal of Aphria’s appeal, the court addressed costs. Aphria was ordered to pay the Landlord $25,000 in legal costs, along with claimed disbursements and applicable HST.
Final Outcome:
Canada Life Assurance Company was awarded a total of $638,171.40 plus interest, and $25,000 in costs, along with disbursements and HST. Aphria Inc.’s appeal was fully dismissed.
