1218807 ALBERTA LTD v MUSLIM ASSOCIATION OF CANADA, 2024 ABKB 34
ANGOTTI J
9.12: Correcting mistakes or errors
9.13: Re-opening case
Case Summary
This was a Decision regarding damages. The case involved a lease agreement between 1218807 Alberta Ltd., as the Plaintiff landlord, and the Muslim Association of Canada (“MAC”), as defending lessee, with the latter being unable to pay rent due to the COVID-19 pandemic and government lockdowns. The Plaintiff sought Judgment for unpaid rent, while the Defendant argued that the force majeure clause in the lease excused them from paying rent during this time.
On May 19, 2023, following a Summary Trial, Justice Angotti granted Judgment in favour of the Plaintiff for unpaid rent and dismissed the Defendant’s counterclaim for a declaration that they were excused from paying rent under the force majeure clause. In that decision, Angotti J. stated:
The Landlord provided evidence with respect to the rent owing at various times. However, after April 1, 2021, when both parties agree that the rents owing were $663,117.15, the calculations revert to a yearly rather than a monthly calculation. If the parties are unable to determine the calculation of rent owing as of June 30, 2021, they may appear before me to have the calculation determined.
The Court accepted the Plaintiff's calculation of damages for May and June 2021. However, it was not brought to the Court’s attention by either party, until MAC’s letter of October 26, 2023 (after the Summary Trial decision), that the original calculation of damages included property taxes (and GST on the same). Because the parties agreed at the Summary Trial that MAC is a not-for-profit corporation, and pursuant to the lease, would not be responsible for paying property taxes as a result of that designation, the original damages assessment needed to be reduced. Justice Angotti found that the original damages calculation constituted an “accident, slip, or omission” that could be corrected by the Court under Rule 9.12 or Rule 9.13. Therefore, the Court corrected its prior Judgment and found the total damages for which MAC was liable was $515,024.59. This included the original calculation less the property taxes and GST charged on those property taxes, as well as a security deposit of $101,823.50.
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