Legal disturbances to a commercial lease

In an interview with Law360, Montréal partner Christopher Richter discussed Franchise MTY inc. c. Lechter, a decision addressing government public health orders imposed during the pandemic.

As reported, the court determined that “a commercial tenant could not rely on the impact of public health regulations as a reason to stop paying rent during the pandemic” and the decision has since become the precedent for similar cases.

“The Québec Court of Appeal reasoned that public health measures were not disturbances because they did not affect the physical premises per se,” Christopher said.

“The regulations were not about the use of the building, but about the operations of the business.”

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