By Ian Carruthers and Noel Harper
DISCLAIMER: This blog is intended to inform the reader about how the law was applied in a particular case. It should not be taken as advice regarding the outcome of any other case, even one that may have similar facts. The Court’s decision will depend on the facts of each case. Please call 1-844-210-9511 or visit carrutherslaw.ca if you would like to discuss your specific case.
In this week’s examination of how the Limitations Act might be applied to a particular case, we have two companies feuding over a lease agreement after the defendant tenant refused to pay rent to the plaintiff landlord and vacated their offices after damage ensued. As the Justice, it is up to you to determine when the limitation period began in this case. Here is how it breaks down:
On October 1, 2007, the plaintiff and defendant entered into a lease agreement for seven years.
On January 3, 2010, a ruptured plumbing line resulted in flood damage to the premises. A dispute ensued over whether the plaintiff’s efforts to repair the damage were sufficient, and the defendant ultimately vacated the building and stopped paying rent.
On June 7, 2010, the plaintiff served the defendant with a notice of default. However, they did not proceed with an action against the defendant at the time, as the defendant was in a state of financial distress, incurring substantial losses, and had encumbered all its assets. As such, the plaintiff concluded that its expected recovery would not justify the cost of suing the defendant.
On January 31, 2012, the plaintiff posted a notice of repudiation at the premises, indicating that their lease with the defendant had been terminated, and claimed rent arrears from the defendant.
On April 23, 2013, the once-struggling defendant company entered a reverse takeover with a private American company, dramatically improving its financial position.
On January 30, 2014, the plaintiff commenced an action to recover rent arrears of more than $750,000 from the defendant.
On October 14, 2014, the defendant applied for summary dismissal of the plaintiff’s rent arrears claim, citing the Limitations Act.
Did you get it right? Check out the next post for the solution and a brief explanation of the case in question.