Augusta Studios Inc. leased a property, including the basement unit, under an original lease defining the premises as “the whole of the premises.”
The lease was later amended to calculate rent based on square footage instead of a flat rate.
8699011 Canada Inc., the new owner of the property, argued that the amended rent calculation excluded the basement from the lease.
Procedural History:
The Superior Court of Justice, under Justice Loretta P. Merritt, ruled in favor of Augusta Studios Inc., declaring the basement was part of the leased premises.
Appeal:
8699011 Canada Inc. appealed, arguing the application judge erred in interpreting the amended lease agreement.
Decision:
The Court of Appeal dismissed the appeal, holding:
The application judge correctly interpreted the lease.
The amended lease changed the rent calculation but did not exclude the basement.
There was no legal error or misinterpretation warranting appellate intervention.
Costs of $15,000 were awarded to Augusta Studios Inc.
