Lease Termination Upheld: 1548 Richmond Manor Inc. v. Fido Solutions Inc. 2019
Court upholds termination of cellular tower lease due to property development plans, ordering removal within 60 days
Summarized by RentZenLast updated: August 16, 2024
Case Summary
Decision in favor of
landlord
Balance Owed
-
Dispute Categories
Agree with the ruling?
Timeline
Hearing Date
May 2019
Tenancy End Date
May 2019
Order Date
Jun 19, 2019
Dispute Summary
The Landlord sought a declaration that a lease agreement for a cellular tower site was properly terminated, and an order requiring the Tenant to remove the tower and equipment. The Tenant disputed the termination and requested more time to relocate if termination was upheld.
Determinations
- Landlord had bona fide intention to develop the property
- City's requirements made tower operation no longer feasible
- Landlord was entitled to terminate lease under termination clause
- Lease terminated May 31, 2019
- Tenant must remove tower and equipment by July 31, 2019
- No basis for relief from forfeiture
Case Study
The court interpreted the termination clause to allow termination if the Landlord's development plans rendered the tower's operation no longer feasible, not impossible. The City's requirement for the land to be conveyed free of encumbrances made the tower's continued operation not feasible. The Landlord was entitled to terminate the lease.
Arguments and Actions
Landlord
Arguments
The Landlord argued that 'no longer feasible' in the termination clause did not mean impossible, and that the City's requirements for development made the tower's continued operation not feasible.
Actions
The Landlord accepted rent payments after issuing the termination notice and did not communicate with the Tenant for almost two years regarding the termination.
Tenant
Arguments
The Tenant argued that the termination clause required the tower's operation to be impossible, not merely unfeasible, and that they should be granted relief from forfeiture to allow more time to relocate the tower.
Actions
The Tenant argued that the Landlord's acceptance of rent after the termination notice led them to believe the lease was not terminated.
Decision Summary
The court declared the lease terminated as of May 31, 2019. The Tenant was ordered to vacate the leased land and remove the cellular tower and all related equipment by July 31, 2019. The Tenant was also ordered to pay rent owing up to May 31, 2019 and delete the Notice of Lease from title to the property.
Adjudicator Details
Ontario Superior Court of Justice
Total Orders
7
Landlord Favorable
57.1%
Tenant Favorable
14.3%
Mutual Agreement
28.6%
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