Commercial Leasing

Aphria Inc. v. Canada Life Assurance Co.: Can the common law be changed with prospective-only effect?

In February 2026, the SCC heard the appeal in Aphria Inc. v. Canada Life Assurance Co. The question presented asks whether commercial landlords who reject a tenant’s lease repudiation are subject to the doctrine of mitigation. On its face the case seems to be of niche interest: significant for commercial property and contract lawyers, of course, but perhaps a dry topic for others. Far from it. As became apparent during oral arguments before the SCC, the appeal in Aphria puts in issue fundamental principles regarding the nature of common law decision-making.

APPEAL WATCH: Old Leases, Same Law? ONCA Reaffirms “No Duty to Mitigate” in Aphria

In June 2025, the Supreme Court of Canada granted leave to appeal the Court of Appeal for Ontario’s decision in Canada Life Assurance Company v. Aphria Inc,. The Court's decision reaffirms that when a commercial landlord does not accept a tenant's repudiation of a lease and insists the lease remain in full effect, the landlord has no duty to mitigate the resulting damages. This decision adheres to the binding authority of Highway Properties Ltd v Kelly, Douglas and Co Ltd., where the SCC outlined four actions a landlord can take in response to a tenant's fundamental breach.

Mapleview v Papa Kerollus: Erring on the side of fairness when adjudicating commercial leases

Mapleview-Veterans Drive Investments Inc. v Papa Kerollus VI Inc. (Mr. Sub), 2016 ONCA 93 [Mapleview], a case released yesterday by the Ontario Court of Appeal (“ONCA”), is the latest pronouncement on interpreting commercial lease provisions. While the outcome of the appeal is understandable given the facts relied upon by the parties, it causes concerns not […]