13 Dec 2024
World Medpharm Inc. v. York Region Standard Condominium Corporation No. 1279
Key Facts:
- Enhanced Care Pharmacy operated in a condominium building at 7163 Yonge St., Thornhill (Building Two) under a sublease.
- World Medpharm held an Exclusive Use Agreement granting the sole right to operate a pharmacy in Buildings One and Two, as established by the Declarant (Liberty Development Group).
- Building declarations prohibited pharmacy operations without Declarant consent, enforced by World Medpharm as its agent.
Procedural History:
- World Medpharm initiated an application to enforce the exclusive-use provision.
- The application judge ruled in favor of World Medpharm, directing Enhanced Care to cease operations per the Condominium Act, 1998, s. 134.
- Enhanced Care's appeal argued five main grounds but was dismissed.
Appeal Grounds and Court Analysis:
- Lease Agreement Weight: Enhanced Care claimed it was unaware of the prohibition despite lease terms. The court upheld the application judge's reliance on the lease's text over conflicting testimony.
- Standing of Respondents: The appellants contested World Medpharm's standing to enforce the declaration. The court affirmed the Declarant's authority to appoint an agent for enforcement.
- Discretion Not Exercised: Enhanced Care argued the Exclusive Use Agreement held minimal value due to neighborhood competition. The court deferred to the application judge's discretion and found no misapplication of principles.
- Patient Harm: Enhanced Care's argument on public health grounds was rejected due to lack of evidence of third-party harm.
- Pharmacy Definition: The court dismissed the contention that Enhanced Care’s operations did not qualify as a pharmacy under the declaration.
Disposition:
- Appeal dismissed.
- Costs awarded to respondents ($15,000).