Delta Automotive Ltd. v 4846 Elliott St Ltd.
4846 Elliott St Ltd.
4846 Elliott Holding Ltd.
Delta Automotive Ltd.
Law Firm / Organization
Not Specified
Lawyer(s)

S.E. Potter

Law Firm / Organization
Hamilton & Company
Lawyer(s)

Jordan Kinghorn

Background:
Delta Automotive Ltd., a long-standing tenant operating an automotive repair shop at 4846 Elliott Street, Delta, B.C., sought relief from forfeiture under Section 24 of the Law and Equity Act, R.S.B.C. 1996, c. 253, after its lease with 4846 Elliott St Ltd. and 4846 Elliott Holding Ltd. was terminated. The lease, originally entered in 2019 and renewed in 2022, expired on October 31, 2023. The petitioner failed to negotiate new fair market rent or consistently pay rent, leading to termination in July 2024.

Legal Arguments and Issues:
The petitioner argued that relief from forfeiture was justified due to its longstanding operation at the premises and the significant impact of losing the location. The respondents countered that the lease termination was valid and that the petitioner’s breaches—including rent non-payment and failure to remedy safety issues—precluded equitable relief.

Court’s Analysis:
Justice J. Hughes denied relief, citing:

  • Repeated breaches by Delta Automotive Ltd. in failing to pay rent or negotiate renewal terms.
  • Significant harm to the landlord, including jeopardized insurance and a damaged landlord-tenant relationship.
  • Lack of evidence that denying relief would cause disproportionate harm or be unconscionable.

Conclusion and Costs:
The petition was dismissed, and solicitor-client costs were awarded to the respondents as per the lease’s terms. The total costs were subject to assessment by the registrar but were not quantified in the judgment.

This case reinforced the discretionary nature of relief from forfeiture and the importance of good faith in lease negotiations.

Supreme Court of British Columbia
S254989
Real estate
Respondent