Clark Auto v. Integra Custom Collision, 2007 BCCA 24

• Judge: Newbury, Levine and Kirkpatrick, JJ.A.
• Court: Court of Appeal (British Columbia)
• Case Date: December 12, 2006
• Jurisdiction: British Columbia
• Citations: 2007 BCCA 24;(2007), 234 B.C.A.C. 309 (CA)

Clark Auto v. Integra Custom Collision (2007), 234 B.C.A.C. 309 (CA);

    387 W.A.C. 309

MLB headnote and full text

Temp. Cite: [2007] B.C.A.C. TBEd. JA.037

Clark Auto Body Ltd. (respondent/petitioner) v. Integra Custom Collision Ltd. (appellant/respondent)

(CA034570; 2007 BCCA 24)

Indexed As: Clark Auto Body Ltd. v. Integra Custom Collision Ltd.

British Columbia Court of Appeal

Newbury, Levine and Kirkpatrick, JJ.A.

January 15, 2007.

Summary:

A landlord sent its tenant a letter advising that $5,292.14 was owing for GST on gross rent. The tenant paid $4,006.79. The tenant delivered to the landlord a notice to renew the lease. The landlord sent a notice of default to the tenant for non-payment of the balance of $1,285.35 owing for GST and a notice of termination of the lease in light of the default. The tenant petitioned for relief from forfeiture.

The British Columbia Supreme Court allowed the petition. The landlord appealed.

The British Columbia Court of Appeal allowed the appeal.

Landlord and Tenant - Topic 2396

The lease - Renewals - Conditions precedent - [See Landlord and Tenant - Topic 6786 ].

Landlord and Tenant - Topic 6786

Termination, forfeiture and reentry - Relief against forfeiture - When available - A commercial lease contained an option to renew provided that there was no outstanding notice of default - A landlord sent its tenant a letter advising that $5,292.14 was owing for GST on gross rent - The tenant paid $4,006.79 - The tenant delivered to the landlord a notice to renew the lease - The landlord sent a notice of default to the tenant for non-payment of the balance of $1,285.35 owing for GST and a notice of termination of the lease in light of the default - The tenant petitioned for relief from forfeiture under s. 24 of the Law and Equity Act - A chambers judge allowed the petition - The British Columbia Court of Appeal set aside the order - There was no compulsion on the tenant to exercise the renewal option, but if it did so, the tenant had to comply with the conditions precedent - If the tenant failed to comply, it did not suffer a penalty or forfeiture of an existing tenancy - Equity would not intervene.

Cases Noticed:

Finch v. Underwood (1875), 2 Ch. 310 (C.A.), refd to. [para. 12].

Huntting v. McAdam (1908),13 B.C.R. 426; 8 W.L.R. 214 (S.C.), consd. [para. 13].

Sparkhall v. Watson, [1954] 2 D.L.R. 22 (Ont. Div. Ct.), refd to. [para. 14].

Janzen v. Sun International, [1987] B.C.J. No. 503 (S.C.), refd to. [para. 15].

Pamcor Investments Ltd. v. Friends and Neighbors Family Restaurant Ltd., [1987] 4 W.W.R. 532; 12 B.C.L.R.(2d) 387 (C.A.), refd to. [para. 16].

5000 Kingsway Ltd. v. F. & A. Enterprises Ltd. (1994), 36 R.P.R.(2d) 140 (B.C.S.C.), refd to. [para. 17].

Ross v. Eaton (T.) Co. (1992), 58 O.A.C. 366; 11 O.R.(3d) 115 (C.A.), refd to. [para. 18].

Shiloh Spinners Ltd. v. Harding, [1973] A.C. 691; 1 All E.R. 90 (H.L.), refd to. [para. 27].

Union Eagle Ltd. v. Golden Achievement Ltd., [1997] A.C. 514; 209 N.R. 379; 1 All E.R. 90 (P.C.), folld. [para. 28].

Authors and Works Noticed:

Halsbury's Laws of England (1981) (4th Ed. - Reissue), paras. 115, 359 [para. 25].

Counsel:

W.D. MacLeod, for the appellant;

R.G. Lew, for the respondent.

This appeal was heard on December 12, 2006, at Vancouver, B.C., by Newbury, Levine and Kirkpatrick, JJ.A., of the British Columbia Court of Appeal. The following judgment of the Court of Appeal was delivered by Kirkpatrick, J.A., on January 15, 2007.