The court hears arguments in case #29196, Domgroup Ltd. v. Crystalline Investments Ltd. and Burnac Leaseholds Ltd., on November 7, 2003.
On April 30, 1979, Domgroup Ltd. signed 25-year leases for properties owned by Crystalline Investments Ltd. In 1985, Domgroup assigned the leases to another company, Coastal Foods, which later became Food Group. In 1994, Food Group ran into financial difficulty and filed a proposal pursuant to the Bankruptcy and Insolvency Act. Part of its proposal included terminating its leases with Crystalline Investments Ltd. Food Group’s trustee informed Crystalline of its decision to repudiate the lease, and Crystalline did not initially challenge this. Food Group did not inform Domgroup. The Court of Queen’s Bench for New Brunswick approved Food Group’s proposal and Crystalline received compensation payments equal to six months’ rent under the terms of the leases. In 1995, Crystalline informed Domgroup that Food Group had repudiated the leases Domgroup had assigned to Food Group, and demanded to be paid the outstanding rent pursuant to the original lease agreements. Domgroup refused to pay and was initially granted summary judgment in the cases. The Ontario Court of Appeal reversed the summary judgments. Domgroup is now appealing that decision to the Supreme Court.
Lawyer Fred Cass presents arguments on behalf of Domgroup Ltd.