2017 Soybean Harvest

2017 Soybean Harvest

Wednesday, June 29, 2011

Court finds tenant who didn't pay rent cannot claim termination payments under leases

The Provincial Court of Saskatchewan has dismissed a claim brought by Mylyn Chamberlin against his former landlords for payment of termination fees under various leases.  Chamberlin had leased four quarter-sections of farm land from a group of brothers under separate, but virtually identical agreemnents.  The agreements each provided that rent was to be paid for the farm land, and that if the landlord terminated the agreement, a payment of up to $40.00 per acre would be owing to Chamberlin.  The four quarter-sections together comprised 520 acres and Chamberlin claimed $20,400.  From this amount, he deducted $8,000, which was the amount of rent he had failed to pay for the land.

The brothers wanted to sell the land and terminated the leases.  However, the Court ruled that Chamberlin had repudiated the agreements by failing to pay rent.  It was determined that Chamberlin could not rely on the termination clauses in the agreements.  The Court also dismissed a claim made by Chamberlin for input costs he had allegedly invested in the land, finding that there was no evidence produced that would allow an assessment of these costs to be made.  The Court did, however, acknowledge that costs had been incurred and on that basis declined to award court costs against Chamberlin.

Read the decision at: Chamberlin v Larson.