March et al. v. Campbell (Colin) Ltd., (1972) 3 Nfld. & P.E.I.R. 503 (NFSC)

• Judge: Higgins, J.
• Court: Supreme Court of Newfoundland and Labrador (Canada)
• Case Date: October 11, 1972
• Jurisdiction: Newfoundland and Labrador
• Citations: (1972), 3 Nfld. & P.E.I.R. 503 (NFSC)

March v. Campbell Ltd. (1972), 3 Nfld. & P.E.I.R. 503 (NFSC)

MLB headnote and full text

March et al. v. Colin Campbell Limited

Indexed As: March et al. v. Campbell (Colin) Ltd.

Newfoundland Supreme Court

At Trial

Higgins, J.

October 11, 1972.

Summary:

This action arose out of a claim by the plaintiffs against the defendant subtenant for damages for breach of a covenant to repair rented business premises. In 1893, the owner of a harbour side property leased the property to the plaintiffs for a 99 year term. The plaintiffs covenanted to build on the property a building of $4,000.00 value and to keep it repaired. In 1911, the plaintiffs sublet the property and building to the defendant for the residue of the term less ten days with a covenant to repair. In 1971, the plaintiffs gave notice to the defendant to repair the building, which suffered from substantial defects from age and decay. After repairs, which did not satisfy the plaintiffs, the plaintiffs gave the defendant notice of forfeiture of the lease. The plaintiffs brought this action for possession, mesne profits and damages to the plaintiff's reversionary interest in the property. The trial court dismissed the action.

The trial court found that the state of repair of the building required an expense of a minimum of $100,000.00 to make necessary repairs. The repairs would not increase the life of the building to the end of the lease. The trial court stated that it was unreasonable to expect a tenant to make such repairs to a building which cost only $4,000.00 to build. The trial court held that the covenant to repair did not require the defendant to rebuild the building. The trial court held that the defendant was not responsible for the condition of the building which in the course of time inevitably decayed.

Landlord and Tenant - Topic 1213

The premises - Repairs - By tenant, extent of obligation - Covenant to repair - Tenant leased business building for 81 year term in 1911 - Building acquired substantial defects from decay - Necessary repairs would be extremely expensive and would increase life of building only 15 years - Newfoundland Supreme Court held covenant to repair did not require tenant to rebuild building - Trial court dismissed owner's action for breach of covenant to repair.

Cases Noticed:

Lister v. Lane and Nesham, [1893] 2 Q.B. 212, folld.

Sotheby v. Grundy, [1947] 2 All E.R. 761, folld.

Collins v. Flynn, [1963] 2 All E.R. 1068, folld.

Counsel:

John R. Sinnott, for the plaintiffs;

W. Gary Rowe, for the defendant.