What is the test for setting off third party maintenance expenses under a master lease agreement?

Ontario, Canada


The following excerpt is from 941807 Ontario Ltd. v. Lennox Drum Ltd., 2003 CanLII 31888 (ON SCDC):

The trial judge found that while some maintenance was done in furtherance of the yearly certification procedure, the plaintiff fell short of its obligation under the master lease agreement. In the result, the trial judge found that the defendant was entitled to set off the amount summarized in Exhibit 52 representing third party maintenance expenses incurred by the defendant. There is no palpable or overriding error that affected his assessment of the facts relevant to this pivotal issue that would warrant our interference. See Stein v. The Ship “Kathy K”, (1975) 1975 CanLII 146 (SCC), 62 D.L.R. (3d) 1 (S.C.C.) at p. 5.

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