| ICSC Legal Database - Cases | Monday, February 22, 1999 05:01 PM |
| Citation: |
| Arc Sports Ltd. v. Delia Catering Inc. (1997) O.J. No. 3790 Ont. Crt. (Gen. Div.). |
| Issue: |
| The landlord leased to the tenant a banquet hall and kitchen in an arena for use as a catering business for |
| weddings and banquets. The tenant used the premises for all-night dance parties and charity casinos on a |
| number of occasions without landlord approval, as a result of which the landlord purported to terminate the |
| lease. Notwithstanding its finding that the use clause had been breached, the court granted the tenant relief |
| from forfeiture on the grounds that the landlord had waived the breach of covenant by accepting rent and on the |
| condition that the tenant refrain for the balance of the term from using the premises for any purpose other than |
| catering for weddings and banquets. The tenant subsequently violated the clause and the landlord served notice |
| of termination of the lease on the basis of breach of the use clause. The court upheld the termination on the |
| basis that the event was a dance party, not a banquet, and that the food was not a full meal. The tenant's |
| behavior was a flagrant violation of the lease, and damages would be an inappropriate remedy. The tenant's |
| willful disregard of the earlier court order disentitled the tenant from relief from forfeiture. |
| Classification 1: |
| Covenants/Clauses |
| 00074 - Legal Update - Spring 1998 |
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