32262 B.C. Ltd. v. Balmoral Hotel Ltd.,

• Jurisdiction: British Columbia
• Judge: Prowse, Finch and Mackenzie, JJ.A.
• Neutral Citation: 1999 BCCA 0184
• Subject Matter: PERSONAL PROPERTY
• Citation: (1999), 121 B.C.A.C. 23 (CA),1999 BCCA 0184,121 BCAC 23,(1999), 121 BCAC 23 (CA),121 B.C.A.C. 23
• Date: 26 February 1999
• Court: Court of Appeal (British Columbia)

32262 B.C. Ltd. v. Balmoral Hotel (1999), 121 B.C.A.C. 23 (CA);

   198 W.A.C. 23

MLB headnote and full text

Temp. Cite: [1999] B.C.A.C. TBEd. AP.029

32262 B.C. Ltd. (appellant) v. Balmoral Hotel Ltd. (respondent)

(CA022541; 1999 BCCA 0184)

Indexed As: 32262 B.C. Ltd. v. Balmoral Hotel Ltd.

British Columbia Court of Appeal

Prowse, Finch and Mackenzie, JJ.A.

March 25, 1999.

Summary:

The plaintiff rented display signs to the defendant under a standard form contract. The plaintiff sued the defendant for monies owing under the contract pursuant to a non-payment and acceleration clause. The plain­tiff also sued in quantum meruit. The trial judge dismissed the action. The plaintiff appealed.

The British Columbia Court of Appeal dismissed the appeal.

Personal Property - Topic 4423

Rental agreements - Renewals - What constitutes an enforceable renewal - In 1986 Sign-O-Lite and Balmoral executed a standard form contract for rental of display signs for a pub - Balmoral sold the pub to Sierra in 1989 without any formal assign­ment of the rental contract - Sierra defaulted under the agreement of sale and Balmoral resumed possession - Balmoral alleged its rental contract with Sign-O-Lite had ended and not been renewed - Sign-O-Lite sued for accelerated rentals under the contract - The British Columbia Court of Appeal affirmed the dismissal of the action - Because the substitution of Sierra was never formalized as contemplated by the contract, a breach of contract occurred - This breach was inconsistent with "faithful performance", a contractual condition for automatic renewal of the contract.

Cases Noticed:

32262 B.C. Ltd. v. See-Rite Optical Ltd. et al. (1998), 216 A.R. 33; 175 W.A.C. 33 (C.A.), refd to. [para. 16].

Counsel:

Robert J. Ellis, for the appellant;

John G. Mendes, for the respondent.

This appeal was heard before Prowse, Finch and Mackenzie, JJ.A., of the British Columbia Court of Appeal at Vancouver, British Columbia on February 26, 1999. The decision of the court was delivered on March 25, 1999 by Mackenzie, J.A.