COMMERCIAL TENANCIES - Termination of lease (forfeiture) - Grounds - Non-monetary default

Law360 Canada ( April 27, 2021, 6:23 AM EDT) -- Application by the appellant, Airside Event Spaces, for stay of execution of an order refusing relief from forfeiture. Airside was a tenant at a regional airport owned by the respondent, the Township of Langley, as an assignee under a 14-year lease expiring in 2027. In 2020, the Township terminated the lease due to multiple breaches by Airside. The Township alleged that Airside breached the lease’s prohibition on sub-letting for unapproved and unlawful uses, constructed amenities without permits or approval and failed to permit an inspection of its premises. Airside filed a petition seeking relief from forfeiture. It submitted that the breaches were unintentional and/or had a minor impact on the Township. The judge acknowledged Airside’s strong prima facie case arising from its sizable investment in the premises. However, the judge concluded that the deliberate nature of Airside’s misconduct and an absence of demonstrable good faith disqualified it from the relief sought. Thereafter, the parties entered a standstill agreement that allowed Airside to pay rent while the Township agreed not to lease to a new tenant. Airside sought a stay of execution of the order that would effectively continue the standstill agreement pending determination of the appeal....
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