{"id":8610,"date":"2022-05-13T10:39:01","date_gmt":"2022-05-13T14:39:01","guid":{"rendered":"https:\/\/360mediations.com\/en\/?p=8610"},"modified":"2022-05-13T10:39:05","modified_gmt":"2022-05-13T14:39:05","slug":"commercial-landlord-denied-right-to-sue-individual-owner-of-defaulting-tenant-company","status":"publish","type":"post","link":"https:\/\/www.360mediations.com\/en\/commercial-landlord-denied-right-to-sue-individual-owner-of-defaulting-tenant-company\/","title":{"rendered":"Commercial Landlord Denied Right to Sue Individual Owner of Defaulting Tenant Company"},"content":{"rendered":"\n

This recent decision shows how important it is for a commercial landlord to secure a personal guarantee from the owner of a closely held corporate tenant if the landlord wants to be able to pursue them in the event of default by the corporate tenant.<\/p>\n

Here the landlord failed to have any binding contract with the individual owner of the corporate tenant (the \u201cIndividual\u201d).\u00a0 The allegation was that the Individual directed the corporate tenant to deliberately break the lease a year early without notice (so they could set up shop at a new location).\u00a0 The Individual was not listed on the lease, and was not a party to any personal guarantee.\u00a0 The court rejected each of the landlord\u2019s arguments to maintain a civil claim against the Individual personally. \u00a0This included:<\/p>\n

    \n
  1. \n
      \n
    1. a tort claim for interference with contractual relations (rejected);<\/li>\n
    2. an oppression remedy under section 248<\/a>\u00a0of the Business Corporations Act<\/a><\/em> (rejected); and<\/li>\n
    3. piercing the corporate veil (rejected).<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n

      The primary pronouncement is that the courts should not be in the business of rewriting contracts.\u00a0 \u201cIt is not the function of the court to rewrite contracts or to relieve a party to a contract of the consequences of an improvident agreement<\/em>.\u201d\u00a0 In this case, the sophisticated landlord entered into a commercial lease without fastening any personal liability on the owner (ie: the \u201cIndividual\u201d), and the court was not prepared to rewrite the contract to include this term.<\/p>\n

      FNF Enterprises Inc. v. Wag and Train Inc<\/em><\/strong>., 2022 ONSC 2813<\/p>\n

      https:\/\/www.canlii.org\/en\/on\/onsc\/doc\/2022\/2022onsc2813\/2022onsc2813.html<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

      This recent decision shows how important it is for a commercial landlord to secure a personal guarantee from the owner of a closely held corporate tenant if the landlord wants to be able to pursue them in the event of default by the corporate tenant. Here the landlord failed to have any binding contract with… Continue reading Commercial Landlord Denied Right to Sue Individual Owner of Defaulting Tenant Company<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[150,130],"tags":[],"class_list":["post-8610","post","type-post","status-publish","format-standard","hentry","category-contract-law","category-landlord-and-tenant","entry"],"yoast_head":"\nCommercial Landlord Denied Right to Sue Individual Owner of Defaulting Tenant Company - 360Mediations<\/title>\n<meta name=\"description\" content=\"If a commercial landlord does not secure a personal guarantee from the owner of corporate tenant, or have them included as a tenant, it can be very difficult to seek redress against them afterwards.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.360mediations.com\/en\/commercial-landlord-denied-right-to-sue-individual-owner-of-defaulting-tenant-company\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Commercial Landlord Denied Right to Sue Individual Owner of Defaulting Tenant Company - 360Mediations\" \/>\n<meta property=\"og:description\" content=\"If a commercial landlord does not secure a personal guarantee from the owner of corporate tenant, or have them included as a tenant, it can be very difficult to seek redress against them afterwards.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.360mediations.com\/en\/commercial-landlord-denied-right-to-sue-individual-owner-of-defaulting-tenant-company\/\" \/>\n<meta property=\"og:site_name\" content=\"360Mediations\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/360Mediations-120028596572318\" \/>\n<meta property=\"article:author\" content=\"https:\/\/www.facebook.com\/360Mediations-120028596572318\" \/>\n<meta property=\"article:published_time\" content=\"2022-05-13T14:39:01+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-05-13T14:39:05+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/www.360mediations.com\/en\/wp-content\/uploads\/2022\/01\/COURT-DECISIONS-360MEDIATIONS-1x1-1.png?fit=406%2C322&ssl=1\" \/>\n\t<meta property=\"og:image:width\" content=\"406\" \/>\n\t<meta property=\"og:image:height\" content=\"322\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"David M. 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