Lease Termination - Re: Commercial Tenancy

911 Priority Corporation v. Murray, 2019 ONSC 3585 (CanLII)

[33] If rent remains unpaid for over 15 days, unless otherwise agreed, a landlord may lawfully re-enter and take possession without any formal demand for payment. (See: Commercial Tenancies Act, R.S.O. 1990, c. L.7. s. 18(1) - (the Act))

[34] “Otherwise agreed” means the landlord and tenant agreed to a termination provision in the lease that is different from the statutory provision, such as written notice and a period to cure the default. (See: 772067 Ontario Ltd. v. Victoria Strong Manufacturing Corp., [2017] O.J. No. 2719, aff’d on other grounds 2018 ONCA 36ref name="772067-Ontario"/>)

[35] A landlord who re-enters premises before the expiration of a notice period prescribed by a lease agreement enters the premises unlawfully and wrongfully terminates the lease. (See: Buck or Two Properties Inc. v. 1281632 Ontario Limited, 2007 CanLII 54077 at para 9)

[36] A landlord and tenant can contract out of the waiver provisions of the Act. If they do so, a landlord’s acceptance of rent after notice to a tenant of breach does not constitute a waiver. (See: Kiryat Developments Inc. v. O’Brien’s Restaurants Inc., 1987 CarswellOnt 2243 at paras. 21 to 22)

[40] A storer has a lien against an article that it has stored for the fair value of the storage. (See: Repair and Storage Lien Act, R.S.O. 1990, c.R.25 s. 4(1) – (the RSLA)

[41] A storer is defined in the RSLA as “a person who receives an article for storage…on the understanding that the person will be paid for the storage.”

[42] Where a landlord properly terminated a lease that stated the landlord could claim for charges, the landlord was entitled to storage costs of a tenant’s goods. (See: Globe Convestra Ltd. v. Vucetic, 1990 CarswellOnt 582 para 28)