Ahmed Dharsi LLP successfully resisted a landlord’s application to terminate a commercial lease and evict tenants who had not paid rent for nearly 10 months. The case involved complex arguments surrounding delayed occupancy, fire code compliance, and the scope of rent abatement under the lease.

Despite substantial arrears and procedural allegations from the landlord, the court accepted that delays in fire code compliance materially impacted the tenants’ ability to operate. We secured a court-ordered rent abatement for four months and defeated the application for forfeiture. Our client retained possession of the premises and avoided a costs order, despite the high-stakes nature of the proceeding.

Significance

This case demonstrates how thoughtful legal framing of “occupancy” and diligent factual advocacy can overcome serious arrears in a commercial tenancy. It also affirms that landlords cannot always use forfeiture as a blunt instrument when delays result in part from their own failures to meet regulatory compliance obligations.