Ontario commercial lease agreement insolvent commercial tenant introduction April 4th 2019 The case is Royal Bank of Canada V. properties limited 2019 AJ number 412 from the Alberta Court of Queen’s bench This case about an insolvent tenant commercial tenant the same would hold true in Ontario. I thought it would be helpful to review the principles in his decision and how it would relate to an Ontario commercial lease agreement. background Mike Ontario, there is no commercial tenancy act in Alberta. Provincial statutes in a Supreme Court of Canada decision that provides guidance for commercial landlords and tenants in Alberta. The commercial as he preaches a business lease in Alberta similar to a landlord has various alternatives. Commercial lease agreement for rent arrears and for the unexpired duration of the lease may also be part of the landlord’s rights. Distraint or distress is the seizure of the commercial tenants property in order to acquire. Estranged normally includes the goods belonging to the lessee on the premises by the landlord. They conducted restrained no court order is required. The landlord must also be careful. This way the landlord or other damages in the future. A practical basis if the tenant does not bring the lease into good standing in Alaska this train to be completed. The business is probably over anyway. regulation the landlord with higher Bayless Heartland properties limited case I recently the facts and decision of the kitties Facts are pretty simple. the landlord beginning completed At the time of the Caesar thing and solving tenant was $79,586 behind in rent. the landlord’s Bayless completed After taking it to the bailiff paid over to the landlord the amount of $290. The tenant became bankrupt company after the funds were paid to the landlord. Bank of Canada RBC with a secured creditor of the tenant at the date of bankruptcy 8799 dollars RBC took an action that originally was an action that could be taken by the licensed insolvency trustee formerly known as under Section 38 of the bankruptcy and insolvency act I trust he was either unwilling or unable to launch the action. The action RBC launch was for the repayment of the amount realized by the landlord is a preferential payment down under Section 95 of the bee and the Court ruled in favor of RBC. What is it the landlord could retain the amount of $79,586. The balance of $144,404 could not be kept by the landlord. Ontario commercial lease agreement the same decision would be reached in Ontario. Find satisfied that the same decision would be reached in Ontario. As I mentioned above the strain does not a termination of the lease. The Practical effect would be the least continuous and so does the tenants obligations to the landlord? the commercial tenants rights under its Ontario commercial lease agreement also remain Distraint is a mutually exclusive remedy from termination of Elise. the court determined that section 95 That section just included payments made by an insolvent party. The court also stated that section 70 of ABIA protects the landlord’s just rain because it was fully completed by payment to the landlord. Never did find that the payment to the landlord with extreme. I seem to recall the distraint is based on the arrears at the time of affecting the distraint. In this case, the amount outstanding at that time was $79,586. The amount paid to the landlord after the cost of distraint was $223,990. commercial lease landlord responsibilities include providing proper accounting Therefore the court order that the excess over what the landlord $144,404 had to be paid to the plaintiff RBC. If there were no secured creditors. The only difference would be that the excess funds would have to be paid over to the trustee. The result in Ontario would be the same as in this Alberta case. Is your company? Is your company behind its rent payments? Does it not have enough cash to continue its operations? Call the Irish Smith team today. We have Decades of generations of experience assisting people and companies trying to find Financial restructuring or negotiation strategy. You can have a new cost analysis so we can help you fix your company’s debt troubles. Call the IRA Smith team today. This will allow you to go back to a new healthy and Balanced Life starting over starting now. I hope you enjoyed the video the Irish Smith team is available to help you with any time we offer sound. Starting now so that you’ll be well on your way, please visit our website. Details are coming right up now.