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ARTICLE · 13 MAY 2022

Who "Wins" When Relief From Forfeiture Is Granted?

It is common, after parties duke it out in court, for the winner to be "awarded costs" - the loser must pay all or a portion of the winner's legal fees.

CanadaReal Estate and Construction

It is common, after parties duke it out in court, for the winner to be "awarded costs" - the loser must pay all or a portion of the winner's legal fees. However, in an application for relief from forfeiture, who wins and who loses is a more nuanced matter.

As a refresher, an application for relief from forfeiture is brought by a tenant when a landlord has terminated its lease and the tenant seeks to have it reinstated. Relief from forfeiture is the right of the Court to set aside the termination of a lease and reinstate possession to an evicted tenant. It is a discretionary remedy that a Court may grant if, given the conduct of the parties and the surrounding circumstances, the Court considers reinstatement to be just and reasonable. Courts tend to take a generous view of what is just and reasonable; as a result, relief from forfeiture is more or less generally granted on certain usual conditions (such as payment of rent arrears).

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