Relief From Forfeiture (Commercial Tenancy)

1497777 Ontario Inc. v. Leon's Furniture Ltd, 2003 CanLII 50106 (ON CA)

[21] The first issue is whether the landlord's consents to the 1992 and 1997 subleases authorized the further subletting by Leon's to Marca commencing on September 1, 2000. If they did not, Leon's claim for relief from forfeiture must be considered. Finally, if Leon's is not entitled to relief from forfeiture, Marca's claim for relief under s. 21 of the Commercial Tenancies Act, R.S.O. 1990, c. L.7 must be considered.

[50] Finally, with respect to what may be considered to be the legal framework relating to this issue, I note that it has been held that an option to renew a lease, when exercised, results in a fresh demise relating to a new term: see Avlor Investments Ltd. v. J.K. Children's Wear Inc. (1991), 1991 CanLII 7124 (ON SC), 6 O.R. (3d) 225, 85 D.L.R. (4th) 239 (Gen. Div.), at p. 231 O.R. "Where a lease contains an option to renew the lease the exercise of the option will ordinarily involve the creation of a new lease, . . .": [page220] Halsbury's Laws of England, 4th ed (London: Butterworths, 1981), vol. 27(1), para. 467, at p. 435. This supports the view that "the term" in the consent was the initial 30-year term in the lease and that the renewal terms would be new terms.