COMMERCIAL TENANCIES - Lease - Arbitration - Valuation - Tenant’s obligations

Law360 Canada ( February 8, 2023, 6:22 AM EST) -- Application by KMH Cardiology Centres Inc. (KMH) for an order referring specific disputes under three commercial leases to an independent professional consultant for resolution by an expert and not as an arbitration as agreed by the parties. Kanmar founded the applicant KMH. KMH services included nuclear medicine, cardiology, PET scans, and MRI diagnostic services. KMH operated in several locations. Three of its locations were involved in this proceeding. The respondent Lambardar Inc. was owned by Mr. and Mrs. Kanmar. It owned and leased to KMH the three office properties that were the subject of this proceeding. Lambardar built a single-story head office for KMH. It had also leased to KMH two smaller offices. Kanmar sold KMH to its current owners. He had no remaining interest in KMH. It was a sophisticated transaction involving sophisticated professionals on all sides. The leases that were currently in issue for the three properties were negotiated and signed as part of that transaction. Issues have arisen among the landlord and tenant concerning the proper calculation of operating costs for the 2017 through to 2020 fiscal years....
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