The Commercial Landlord's Right To Subrogate

Royal Host GP Inc. v 1842259, 2018 ONCA 467 is an Ontario Court of Appeal decision regarding the commercial landlord's right to subrogate.

Facts

The Appellant – landlord – owns a multi-story commercial building in which it operates a hotel. The respondent – tenant – leased a portion of the building in which they operated a restaurant. Contained within their lease agreement was a requirement for the landlord to obtain fire insurance, which the tenant contributed financially to the premiums for that insurance.

A fire broke out in the respondents' kitchen, resulting in extensive damage to the building. The Appellant was indemnified by their insurer for the losses. As a result, the Appellant's insurer commenced this subrogation claim, in the appellant's name, seeking recovery of damages suffered.