Discretionary Rights within Contracts Must be Exercised in Good Faith

February 16, 2021 - Owen Bird

In addition to the precise obligations required from parties to a contract, a common feature seen among contracting parties are options more formally referred to as “discretional rights”. As the name suggests, these rights afford parties certain latitude in the manner in which contractual rights may be performed. Although these tools afford parties flexibility with respect to contractual performance, the Supreme Court of Canada (the “SCC”) has recently decided that these rights (or options) must be exercised in good faith.

The general doctrine of “good faith” is a longstanding organizing principal recognized under Canadian contract law. This duty imposes a…

New Rent Relief Program Announced to Replace CECRA

October 15, 2020 - Owen Bird

Some good news for commercial tenants: the red tape which plagued the Canadian Emergency Commercial Rent Assistance (CECRA) program has been reduced in favor of an easy-to-access application process that replaces the system of numerous prescribed documents required under CECRA.

On October 9, the Federal Government announced details regarding relief to commercial tenants who have experienced reduced revenues due to the Covid-19 pandemic. This new program will become the successor to the CECRA program originally announced in May of this year and officially now concluded as of September 30, 2020.

In its place, the Canada Emergency Rent Subsidy (CERS) will…

Land Owner Transparency Registry to Launch November 30, 2020

October 13, 2020 - Owen Bird

It was recently announced that much anticipated Land Owner Transparency Registry (the “Registry”) will become effective as of November 30, 2020 (the “Effective Date”) with the Province approving Order in Council No. 549, bringing into force almost all provisions of the governing legislation: the Land Owner Transparency Act (the “Act”).

The purpose of the Act is to mandate reporting for indirect ownership of land in the Province which shall be maintained in the Registry and publicly accessible. Prior to the Effective Date, only legal ownership of lands was recorded which meant that disclosure of ownership began and ended at the…

No Eviction for Eligible Commercial Tenants Unless Landlords Apply for CECRA

June 01, 2020 - Owen Bird

When the Canadian Emergency Commercial Rent Assistance (“CECRA”) Program was first revealed, two issues were highlighted by the public concerning eligibility:

The requirement that the relevant commercial property had been used to secure a mortgage loan; and that commercial tenants were at the whim of their respective landlords to apply for the Program.

The former concern has recently been addressed by the Federal Government by eliminating the requirement for a mortgage to be registered and, as of today, it appears the latter issue has also been remedied.

This morning, the Provincial Finance Minister, Carole James, announced a new emergency order…

APRIL 30 – UPDATE TO CANADA EMERGENCY COMMERCIAL RENT ASSISTANCE (CECRA)

April 30, 2020 - Owen Bird

On April 24, 2020, the federal government reached an agreement in principle with all provinces and territories to implement the CECRA program for qualifying small businesses. Prime Minister Justin Trudeau announced that morning that eligible small businesses affected by Covid-19 will be receiving 75% in rent relief. Those details along with further particulars from the Canada Mortgage and Housing Corporation (“CMHC”) include the following:

Eligible Tenants. The commercial tenants eligible for this program will be those that are paying no more than $50,000 gross per month in rent AND have either temporarily ceased operations (i.e. generating no revenues) or have…

CANADA EMERGENCY COMMERCIAL RENT ASSISTANCE (CECRA) UPDATE

April 24, 2020 - Owen Bird

The federal government has reached an agreement in principle with all provinces and territories to implement the CECRA program for qualifying small businesses. Prime Minister Justin Trudeau announced this morning that eligible small businesses affected by Covid-19 will be receiving seventy-five percent (75%) in rent relief. Details released this morning include the following:

Eligible Tenants. The commercial tenants eligible for this program will be those that are paying less than $50,000 per month in rent and have either temporarily ceased operations or have experienced at least a 70% drop in revenues. This will also include non-profit organizations. Further details are…

New Canada Emergency Commercial Rent Assistance (CECRA) Program Announced

April 17, 2020 - Owen Bird

On April 16 Prime Minister Justin Trudeau announced that the Federal Government plans to introduce the Canada Emergency Commercial Rent Assistance.  This program is slated to provided rent relief to small and medium-sized business amid the Covid-19 pandemic.

While the finer details of the new program are yet to be released, aspects that have been alluded to thus far by the Prime Minister and Finance Minister Bill Morneau include:

a measure of relief is to be provided for rents due in the months of April, May and June; there will be an offer of loans (including forgivable loans) to commercial…

CATCH-22: COMMERCIAL TENANCIES AMID COVID-19

April 17, 2020 - Owen Bird

UPDATE: On April 16th the Federal Government announced tentative rent relief for small and medium-sized businesses. More details to follow.

You get the dreaded call.  Your tenant can’t pay rent.   Or you’re a commercial tenant forced to close shop and your landlord calls looking for this month’s cheque.  What do you do?

Landlords and tenants alike are facing these all-too-common scenarios amidst the Covid-19 pandemic. While the Government has provided limited assistance to residential landlords, these protections do not extend to commercial tenancies which remain, at their core, a strictly contractual relationship.

Commercial Lease Basics

The commercial lease governs the…