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.
