COMMERCIAL TENANCIES - Assignment of tenancy

Law360 Canada ( July 23, 2018, 9:36 AM EDT) -- Appeal by Smiles First Corporation and Union Health and Dental Centre from refusal of relief from forfeiture. In 2015, the respondent landlord entered into a head lease with 244 Ontario for a commercial premises. A letter of intent sublet the premises to Smiles First. In 2016, disputes arose under the head lease and the sublease, with 244 and Smiles First advising the landlord they would negotiate a settlement. 244 executed a document purporting to assign the head lease to Smiles First. However, neither 244 nor Smiles First ever asked the landlord for consent to the assignment. Minutes of Settlement circulated by the landlord contemplated a new head lease with Smiles First. 244 executed the Minutes, stating it had abandoned the head lease and agreed to pay outstanding rent accrued between September and November 2016. Smiles First refused to sign the Minutes on the basis that it was now the official tenant under the extant head lease pursuant to the assignment. In March 2017, the landlord gave Smiles First notice of termination of the tenancy effective at the end of April. Litigation ensued. The application judge found that the assignment was not effective against the landlord due to the absence of consent, and refused relief from forfeiture. The tenants appealed....
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