Deer Valley Shopping Centre Ltd. v. Sniderman Radio Sales and Services Ltd., (1989) 96 A.R. 321 (QB)

JudgeMcBain, J.
CourtCourt of Queen's Bench of Alberta (Canada)
Case DateApril 04, 1989
Citations(1989), 96 A.R. 321 (QB)

Deer Val. Shopping v. Sniderman Radio (1989), 96 A.R. 321 (QB)

MLB headnote and full text

Deer Valley Shopping Centre Ltd. (plaintiff) v. Sniderman Radio Sales and Services Limited, trading as "Sam The Record Man" (defendant)

(Action No. 8501-11023)

Indexed As: Deer Valley Shopping Centre Ltd. v. Sniderman Radio Sales and Services Ltd.

Alberta Court of Queen's Bench

Judicial District of Calgary

McBain, J.

April 4, 1989.

Summary:

A shopping mall tenant breached its lease by vacating the premises before the expiration of the lease term in 1991. The landlord relet the premises several times. The landlord brought an action for damages against the tenant, claiming the difference between the rent payable under the lease for the remainder of the term and the rent actually collected on the reletting.

The Alberta Court of Queen's Bench allowed the action and calculated the amount owing the landlord on an application of the Supreme Court of Canada decision in Highway Properties Ltd. v. Kelly Douglas and Co. Ltd.

Agency - Topic 381

Creation of relation - Agency by estoppel - What constitutes - A tenant leased premises in a shopping mall - A franchisee was to actually occupy the premises - Section 5.01 of the lease provided for the lease term to commence on a date fixed by the landlord provided that the landlord, inter alia, give the tenant 10 days' notice - The landlord gave notice to the franchisee rather than the tenant - The tenant submitted that a lack of notice voided the lease - The Alberta Court of Queen's Bench held that notice to the franchisee was sufficient notice on the tenant, because an agency by estoppel was created where the franchisee had apparent and ostensible authority to deal with all matters respecting occupation of the premises under the lease - See paragraphs 5 to 27.

Agency - Topic 1401

Authority of agent - Apparent authority - General - [See Agency - Topic 381 above].

Agency - Topic 1402

Authority of agent - Apparent authority - Elements of - The Alberta Court of Queen's Bench stated that an agent had apparent or ostensible authority only where there was (1) a representation; (2) reliance on that representation; and (3) an alteration of position resulting from such reliance - See paragraph 23.

Damages - Topic 1103

Liquidated damages - Penalty - What constitutes - A lease provided for interest at prime plus five per cent on all overdue rent - The landlord claimed the interest clause was a genuine pre-estimate of damages and therefore enforceable - The tenant claimed the interest clause was a penalty and therefore unenforceable - The Alberta Court of Queen's Bench set out the factors to be considered in determining whether the clause was liquidated damages or a penalty - The court held that on the evidence the interest clause was a penalty and not a genuine pre-estimate of damages - The court limited the landlord to interest under the Judgment Interest Act - See paragraphs 120 to 141.

Estoppel - Topic 1

Nature of - A landlord sued a tenant for breach of the lease - The tenant claimed the lease was void - The landlord claimed the tenant was estopped from challenging the validity of the lease - The tenant claimed that the landlord could not rely on estoppel, because it could be used as a shield, but not as a sword - The Alberta Court of Queen's Bench held that the landlord was entitled to rely on estoppel to prevent the tenant from denying the validity of the lease, notwithstanding that the landlord was using estoppel to found his cause of action - See paragraphs 50 to 53.

Estoppel - Topic 1163

Estoppel by conduct - Representation by conduct - Practice or course of conduct - Section 5.01 of a lease provided for the lease to commence on a date fixed by the landlord provided that the tenant was given 10 days' notice - Notice was given to the tenant's franchisee rather than the tenant - Several years later, after the tenant vacated the premises before the lease term expired, the tenant claimed the lease was void for lack of notice - The Alberta Court of Queen's Bench held that the tenant was estopped from challenging the validity of the lease on the basis of a lack of notice - Until the tenant vacated it proceeded on the basis that a valid lease existed - The tenant's actions reasonably led the landlord to believe that it accepted notice to the franchisee as meeting the requirements of s. 5.01, thereby estopping the tenant from now raising the issue - See paragraphs 39 to 54.

Interest - Topic 2141

Agreement to pay interest - Bars to recovery - General - [See Damages - Topic 1103 above].

Interest - Topic 3441

Statutory interest - When applicable - General - Section 2(2)(h) of the Judgment Interest Act precluded interest under the Act "where there is an agreement between the parties respecting interest" - A lease clause providing for interest on overdue rent was ruled unenforceable - A tenant claimed that s. 2(2)(h) precluded recovery of interest because there was an agreement respecting interest, even though it was unenforceable - The Alberta Court of Queen's Bench held that s. 2(2)(h) did not apply unless there was an enforceable agreement - See paragraphs 147 to 150.

Landlord and Tenant - Topic 2423

The lease - Repudiation - Options by landlord where tenant repudiates - The Alberta Court of Queen's Bench set out the options available to a landlord where a tenant repudiates the lease: (1) he may accept the surrender and sue for damages sustained to the date of the surrender; (2) he may do nothing and claim the rent as it falls due; (3) he may refuse to accept the surrender, relet the premises on the tenant's account and claim the deficiency in the two rents as it falls due; or (4) he may refuse to accept the surrender, terminate the lease and sue for damages, including the present value of the unpaid future rent for the unexpired term of the lease less the actual rental value for that period - A landlord elected the fourth option and successively relet the premises - The Alberta Court of Queen's Bench assessed damages - See paragraphs 56 to 119.

Cases Noticed:

Harvey v. Pratt, [1965] 2 All E.R. 786, refd to. [para. 3].

Canada Square Corp. v. Versafood Services Ltd. (1982), 130 D.L.R.(3d) 205 (Ont. C.A.), refd to. [para. 4].

Freeman v. Buckhurst Park Properties, [1964] 1 All E.R. 630, refd to. [para. 22].

Rama Corpn. v. Proved Tin & General Investments Ltd., [1952] 1 All E.R. 554, refd to. [para. 23].

Fletcher v. Norcen Energy Resources Limited (1986), 67 A.R. 21; 41 Alta. L.R.(2d) 213 (Q.B.), refd to. [para. 26].

Central London Property Trust v. High Trees House Limited, [1947] 1 K.B. 130, appld. [para. 41].

Hidrogas Ltd. v. Great Plains Development Company of Canada Ltd. (1979), 20 A.R. 483, appld. [para. 42].

Owen Sound Public Library Board v. Mial Developments Ltd. (1979), 102 D.L.R.(3d) 685 (Ont. C.A.), refd to. [para. 47].

Charles Rickards Ltd. v. Oppenhaim, [1950] 1 K.B. 616 (C.A.), refd to. [para. 51].

Tudale Explorations Ltd. and Bruce, Re (1978), 88 D.L.R.(3d) 584 (Ont. Div. Ct.), refd to. [para. 52].

Highway Properties Ltd. v. Kelly Douglas and Co. Ltd. (1971), 17 D.L.R.(3d) 710 (S.C.C.), appld. [para. 60].

Keneric Tractor Sales Limited v. Langille (1988), 79 N.R. 241; 82 N.S.R.(2d) 261; 207 A.P.R. 261 (S.C.C.), refd to. [para. 61].

Dunlop Pneumatic Tyre Co. Ltd. v. New Garage & Motor Co., [1915] A.C. 79 (H.L.), appld. [para. 127].

Thermidaire Corporation Ltd. v. H.F. Clarke Ltd., [1976] 1 S.C.R. 319; 3 N.R. 133, refd to. [para. 129].

J.G. Collins Insurance Agencies Ltd. v. Elsley's Estate (1978), 20 N.R. 1; 83 D.L.R.(3d) 1 (S.C.C.), refd to. [para. 130].

B.L.T. Holdings Ltd. v. Excelsior Life Insurance Company and Cumberland Realty Group Limited (1986), 72 A.R. 217; 47 Alta. L.R.(2d) 1 (C.A.), refd to. [para. 131].

Mitsui and Co. Ltd. v. Ocelot Indus tries Ltd. (1986), 68 A.R. 125 (C.A.), refd to. [para. 133].

Robophone Facilities Ltd. v. Blank, [1966] 1 W.L.R. 1428, refd to. [para. 134].

Cellulose Acetate Silk Co. Ltd. v. Widnes Foundry (1925) Ltd., [1933] A.C. 20 (H.L.), refd to. [para. 136].

Statutes Noticed:

Judgment Interest Act, S.A. 1984, c. J-O.5, sect. 2(1), sect. 2(2)(h) [para. 148].

Authors and Works Noticed:

Williams and Rhodes, Canadian Law of Landlord and Tenant (5th Ed.), p. 4:2:8 [para. 9].

Counsel:

T.T. Mudry, for the plaintiff;

D.G. Groh, for the defendant.

This action was heard before McBain, J., of the Alberta Court of Queen's Bench, Judicial District of Calgary, who delivered the following judgment on April 4, 1989:

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17 practice notes
  • Table of cases
    • Canada
    • Irwin Books Franchise Law
    • 17 Junio 2005
    ...330 Deer Valley Shopping Centre Ltd. v. Sniderman Radio Sales and Service Ltd., 96 A.R. 321, 67 Alta. L.R. (2d) 203, [1989] A.J. No. 305 (Q.B.)................... 171 Deshugh Estates Ltd. v. Robin’s Foods Inc., [1998] B.C.J. No. 1464, 19 R.P.R. (3d) 40 (S.C. [In Chambers])........................
  • Auer v. Lionstone Holdings Inc. et al.,
    • Canada
    • Court of Appeal (Alberta)
    • 3 Febrero 2005
    ...(1908), 7 W.L.R. 639 (Sask. K.B.), refd to. [para. 14]. Deer Valley Shopping Centre Ltd. v. Sniderman Radio Sales and Services Ltd. (1989), 96 A.R. 321 (Q.B.), refd to. [para. 15]. Keddie v. Horne and Canada Life Assurance Co. (1999), 129 B.C.A.C. 90; 210 W.A.C. 90; 179 D.L.R.(4th) 1; 1999 ......
  • Swift v. Eleven Eleven Architecture Inc. et al.,
    • Canada
    • Court of Appeal (Alberta)
    • 4 Diciembre 2013
    ...B.C.T.C. Uned. 791; 2010 BCSC 791, refd to. [para. 22]. Deer Valley Shopping Centre Ltd. v. Sniderman Radio Sales and Services Ltd. (1989), 96 A.R. 321 (Q.B.), refd to. [para. Keddie v. Horne and Canada Life Assurance Co. (1999), 129 B.C.A.C. 90; 210 W.A.C. 90; 179 D.L.R.(4th) 1; 1999 BCCA ......
  • Klemke Mining Corp. v. Shell Canada Ltd. et al., (2007) 419 A.R. 1 (QB)
    • Canada
    • Court of Queen's Bench of Alberta (Canada)
    • 5 Septiembre 2006
    ...[2002] E.W.C.A. Civ. 163 (C.A.), refd to. [para. 215]. Deer Valley Shopping Centre Ltd. v. Sniderman Radio Sales and Services Ltd. (1989), 96 A.R. 321 (Q.B.), refd to. [para. Freeman & Lockyer (A firm) v. Buckhurst Park Properties (Mangal) Ltd., [1964] 1 All E.R. 630 (C.A.), refd to. [p......
  • Request a trial to view additional results
13 cases
  • Swift v. Eleven Eleven Architecture Inc. et al.,
    • Canada
    • Court of Appeal (Alberta)
    • 4 Diciembre 2013
    ...B.C.T.C. Uned. 791; 2010 BCSC 791, refd to. [para. 22]. Deer Valley Shopping Centre Ltd. v. Sniderman Radio Sales and Services Ltd. (1989), 96 A.R. 321 (Q.B.), refd to. [para. Keddie v. Horne and Canada Life Assurance Co. (1999), 129 B.C.A.C. 90; 210 W.A.C. 90; 179 D.L.R.(4th) 1; 1999 BCCA ......
  • Auer v. Lionstone Holdings Inc. et al.,
    • Canada
    • Court of Appeal (Alberta)
    • 3 Febrero 2005
    ...(1908), 7 W.L.R. 639 (Sask. K.B.), refd to. [para. 14]. Deer Valley Shopping Centre Ltd. v. Sniderman Radio Sales and Services Ltd. (1989), 96 A.R. 321 (Q.B.), refd to. [para. 15]. Keddie v. Horne and Canada Life Assurance Co. (1999), 129 B.C.A.C. 90; 210 W.A.C. 90; 179 D.L.R.(4th) 1; 1999 ......
  • Klemke Mining Corp. v. Shell Canada Ltd. et al., (2007) 419 A.R. 1 (QB)
    • Canada
    • Court of Queen's Bench of Alberta (Canada)
    • 5 Septiembre 2006
    ...[2002] E.W.C.A. Civ. 163 (C.A.), refd to. [para. 215]. Deer Valley Shopping Centre Ltd. v. Sniderman Radio Sales and Services Ltd. (1989), 96 A.R. 321 (Q.B.), refd to. [para. Freeman & Lockyer (A firm) v. Buckhurst Park Properties (Mangal) Ltd., [1964] 1 All E.R. 630 (C.A.), refd to. [p......
  • Yuan v. Mah Investments Ltd., 2001 SKQB 108
    • Canada
    • Saskatchewan Court of Queen's Bench of Saskatchewan (Canada)
    • 28 Febrero 2001
    ...207 A.P.R. 361; 43 D.L.R.(3d) 171, refd to. [para. 53]. Deer Valley Shopping Centre Ltd. v. Sniderman Radio Sales and Services Ltd. (1989), 96 A.R. 321; 67 Alta. L.R.(2d) 203 (Q.B.), refd to. [para. 54]. Langley Crossing Shopping Centre v. North-West Produce Ltd. et al., [2000] 4 W.W.R. 560......
  • Request a trial to view additional results
3 books & journal articles
  • Table of cases
    • Canada
    • Irwin Books Franchise Law
    • 17 Junio 2005
    ...330 Deer Valley Shopping Centre Ltd. v. Sniderman Radio Sales and Service Ltd., 96 A.R. 321, 67 Alta. L.R. (2d) 203, [1989] A.J. No. 305 (Q.B.)................... 171 Deshugh Estates Ltd. v. Robin’s Foods Inc., [1998] B.C.J. No. 1464, 19 R.P.R. (3d) 40 (S.C. [In Chambers])........................
  • Business Practices
    • Canada
    • Irwin Books Franchise Law
    • 17 Junio 2005
    ...B.L.R. (3d) 54 (Ont. S.C.J.). 3 Deer Valley Shopping Centre Ltd. v. Sniderman Radio Sales and Service Ltd. (1989), 67 Alta. L.R. (2d) 203, 96 A.R. 321 (Q.B.). 4 Country Style Food Services Inc. v. 1304271 Ontario Ltd. (2003), 7 R.P.R. (4th) 184 (Ont. Sup. Ct.). fr anchise law 172 b. Advanta......
  • Penalty clauses in Canadian contract law.
    • Canada
    • University of Toronto Faculty of Law Review Vol. 66 No. 2, March 2008
    • 22 Marzo 2008
    ...29 B.L.R. (3d) 213. (50) Deer Valley Shopping Centre Ltd. v. Sniderman Radio Sales & Services Ltd. (1989), 67 Alta. L.R. (2d) 203, 96 A.R. 321 (Q.B.) (51) Markdale Ltd. v. Ducharme (1998), 235 A.R. 283 at paras. 63-68 CAlta. Q.B.) [Markdale]. (52) Interestingly, while in Markdale the ju......

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