Commercial Lease Disputes: Protecting Your Rights as a Landlord

A commercial lease is one of the most significant legal relationships a business enters into. When that relationship breaks down, the consequences can be severe on both sides. Landlords face unpaid rent, damaged premises and disrupted income.

At Ebady Law, we act for both landlords and tenants in commercial lease disputes. Daniel Ebady regularly appears before the Ontario Superior Court of Justice and brings a business-minded approach to these matters, drawing on a background in both commercial litigation and transactions. We understand that these matters are often urgent, and we move quickly to protect our clients' interests.

For Landlords: Enforcing Your Lease

When a commercial tenant defaults, landlords have several options depending on the circumstances and the terms of the lease.

Termination and Eviction

Where a tenant has failed to pay rent or has otherwise materially breached the lease, a landlord may be entitled to terminate and recover possession of the premises. Unlike residential tenancies, commercial evictions in Ontario are not governed by the Landlord and Tenant Board. They proceed through the courts, and the process can move relatively quickly where the default is clear and well-documented.

We have acted for landlords in obtaining court orders for possession of commercial premises, and in navigating the practical and legal steps required to enforce those orders effectively.

Distress

Ontario law permits commercial landlords to seize and sell a tenant's goods found on the leased premises as security for unpaid rent. This remedy, known as distress, can be a powerful tool when rent arrears have accumulated. It requires careful execution to be lawful, and missteps can expose a landlord to liability.

Damages and Guarantor Claims

Where a tenant vacates or is evicted with rent remaining owing, a landlord is generally entitled to claim damages for the balance of the lease term, subject to a duty to mitigate. Where the lease is backed by a personal or corporate guarantee, we pursue guarantors directly. Guarantees are frequently signed and frequently forgotten until they are needed. We ensure our landlord clients understand and enforce the full scope of their security.

Injunctions

Where a tenant is causing ongoing damage to the premises, operating in violation of permitted use provisions, or engaging in conduct that threatens the landlord's property or other tenants, injunctive relief may be available. Courts can order a tenant to stop specific conduct on an urgent basis, without waiting for a full trial.

Acting Quickly Matters

Commercial lease disputes rarely improve with time. Unpaid rent accumulates. Premises sit vacant. Business operations are disrupted. Whether you are a landlord seeking to recover your property and losses, or a tenant defending your right to operate, early legal advice is essential.

Our team has experience across the full range of commercial tenancy disputes and can advise you on the most effective path forward.

Ebady Law | ebadylaw.ca | daniel@ebadylaw.ca | 647-773-2006

This blog post is for general informational purposes only and does not constitute legal advice. Please consult a lawyer for advice specific to your situation.