Exclusivity Clauses in Commercial Leases: Battle over the Types of Fitness Centres Permitted on the Leased Premises

By Sarah D. PinsonnaultIn 403-9971 Canada inc. c. Place Lasalle Property Corporation, 2014 QCCS 3153, the Plaintiff is a company that operates a “Curves” franchise in the shopping centre ran by Place Lasalle Property Corporation (“Defendant Landlord”). For those of you who don’t know, Curves is a ladies-only fitness and weight loss centre. It soon became known to the Plaintiff that Les Entreprises Éngergie Cardio Inc. (“Defendant Tenant”) signed a lease with the Defendant Landlord, whereby the Defendant Tenant would open another fitness centre in the same shopping centre. This new fitness facility, called “Econofitness”, is described as a “no-frills” gym that admits both men and women. As a result, the Plaintiff, in claiming an alleged contravention of an exclusivity clause found in its lease, sought a provisional injunction against the Defendant Landlord to prevent the latter from renting to the Defendant Tenant. AnalysisThe Court had to analyse, in accordance with the criteria… Lire la suite