ROBERT CENTA J.
[1] Mike Clark and Luke Pestl founded the plaintiff, Bellwoods Brewery Inc., to brew craft beer. Since 2012, Bellwoods has operated a brewery, retail store, restaurant, and bar from a location on Ossington Avenue in Toronto. By all accounts, Bellwoods has enjoyed critical acclaim and strong customer support. Mr. Clark testified that Bellwoods could not brew enough beer to meet demand and that patrons frequently lined up to wait for a seat at the Ossington restaurant. Given its early success, Bellwoods looked to expand to a second location. In November 2013, Bellwoods appointed Lennard Commercial Realty to assist Bellwoods to lease or purchase new brewery and related facilities.
[2] At about the same time, Pat Johnson, the principal of the defendant, 1896841 Ontario Limited, retained a real estate agent to lease a portion of the building it owned at 950 Dupont Street, which is located at the corner of Dovercourt Road in Toronto. 950 Dupont is an extraordinary building, which used to house a manufacturing plant. The western portion of 950 Dupont is comprised of an 11,000 square foot glass box with 40-foot ceilings. The glass box shares an interior wall with a brick portion of the property immediately to the east of the glass box.
[3] In January 2014, Lennard told Bellwoods about the leasing opportunity at 950 Dupont. Bellwoods was extremely interested in the property. The parties engaged in protracted negotiations throughout 2014 and into 2015. During the negotiations, 1896841 Ontario Limited was represented by an experienced commercial real estate brokerage and a real estate lawyer. Bellwoods was represented by Lennard and its own lawyer.
[4] On May 21, 2015, 1896841 Ontario Limited (the “Landlord”) and Bellwoods signed a 20-year lease agreement. Pursuant to the lease, Bellwoods would rent the glass box and part of the brick building. The lease permitted Bellwoods to use the leased premises as a brewery, a restaurant and bar, public event space, retail beer store, and ancillary office space.
[5] Unfortunately, Bellwoods never occupied the leased premises. Bellwoods commenced this action alleging that the Landlord breached the lease and seeking an order of specific performance. The Landlord counterclaimed for unpaid rent. Lennard sued the Landlord and others for its unpaid commission. All of these actions proceeded to trial before me.
[6] For the reasons set out below, I find that the Landlord breached the lease when it failed to vacate the leased premises. Bellwoods gave the Landlord many opportunities to live up to the obligations under the lease. The Landlord completely disregarded these obligations. Bellwoods did not breach the lease and the Landlord’s counterclaim is dismissed.
[7] I find that ordering specific performance of the lease rather than its monetary equivalent betters serves justice between the parties. Bellwoods is also entitled to damages to reflect the delay in its operations at 950 Dupont that would have commenced on August 1, 2016, but for the Landlord’s breach of the lease.
[8] Finally, I dismiss Lennard’s action because its contract did not entitle it to a commission unless and until Bellwoods occupied the leased premises.
