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ARTICLE · 30 JUNE 2023

Where Do We Stand On Force Majeure In Commercial Leases?

Aird & Berlis LLP
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The COVID-19 pandemic presented many challenges in the commercial leasing world – the effects of which are still being felt today.

CanadaReal Estate and Construction
Monty Warsh
Monty Warsh
Marco Gammone
Marco Gammone
Faruk Gafic
Faruk Gafic
Kenneth Pimentel
Kenneth Pimentel
Annie (Zi An) Xie
Annie (Zi An) Xie
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Niagara Falls Shopping Centre Inc. v. LAF Canada Company

The COVID-19 pandemic presented many challenges in the commercial leasing world – the effects of which are still being felt today. One example of this is the interplay between government-mandated closures and force majeure clauses. Sometimes referred to as an "act of God" clause, force majeure clauses intend to protect parties from events outside of normal business risk and are used to manage the risk, providing relief when an unforeseeable event occurs that is beyond the party's control and impacting its ability to fulfil contractual obligations.

During the pandemic, tenants were left with little recourse arising from these forced closures and were generally obligated to continue to pay rent to their landlords despite being unable to operate from their premises. However, the decision in Niagara Falls Shopping Centre Inc. v. LAF Canada Company, 2023 ONCA 159 ("Niagara Falls") seems to have broken from

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