Background:
- Extreme Toronto Sports Club (Appellant) had three licence agreements with Razor Management Inc. (Respondent) to use sports fields for adult leagues.
- Due to COVID-19, government restrictions prevented or limited field use. A dispute arose over who bore the financial burden.
- The federal CECRA program reduced rent obligations, but the appellant initially refused to apply or make payments for April–July 2020.
- In August, the appellant resumed payments, but still owed over $300,000. It later applied for CECRA with conditions.
- A second shutdown in October 2020 restricted sports but left facilities open. Another closure followed in November.
- In December, a new federal relief program was introduced, but the appellant again refused to apply.
- The respondent terminated the licences in February 2021 for non-payment.
Procedural History:
- The appellant sued for wrongful termination and breach of contract; the respondent counterclaimed for unpaid licence fees.
- The Superior Court granted summary judgment for the respondent, finding the appellant was obligated to pay despite non-use.
Court of Appeal Decision:
- The contracts required payment for allocated time, not conditional on use.
- The motion judge correctly applied contractual interpretation principles from Sattva Capital Corp v. Creston Moly Corp.
- No legal, palpable, or overriding errors were found.
Appeal dismissed; appellant to pay $15,000 in costs.