Is a plaintiff entitled to an award for loss of profits from a landlord who wrongfully terminated a lease?

British Columbia, Canada


The following excerpt is from Sunshine Vacation Villas Ltd. v. Governor and Company of Adventures Trading into Hudson's Bay, 1982 CanLII 581 (BC SC):

Leaving aside the English authorities, I find support for the plaintiff's entitlement to an award for loss of profits in Haack v. Martin, 1927 CanLII 57 (SCC), [1927] S.C.R. 413, [1927] 3 D.L.R. 19. That was a case where a landlord wrongfully terminated a farm lease where there was an unexpired term of about five years to go. Rinfret J. at p. 417 had this to say: When the respondent and the appellants in this case got together on the 26th day of February, 1924, and made the agreement whereby the respondent leased his lands and the appellants promised to pay the yearly rental of one-third of the crop, no doubt the crop each party anticipated was the average crop grown on these lands during the previous years; and the value to each of them of such average crop may reasonably be considered as representing the damages within the contemplation of the parties, if for some reason they happened to be deprived of their share or portion of the yearly rental. Such therefore, in this case, is the measure whereby the damages must he computed, in addition to any actual loss or expense that may he established. (The italics are mine.) Rinfret J. there was saying you may have damages for loss of profits and damages for any other actual losses you have incurred. In this case the plaintiff company has sustained substantial capital losses.

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