
Publication
Trademark tussles just got spicier: Canada now offers costs awards
Costs awards in trademark opposition proceedings have been long anticipated in Canada.
Author:
Canada | Publication | May 12, 2020 – 5 PM ET
Remember, first and foremost, to consult the commercial lease to identify the clause that governs this situation, especially since a commercial lease does not terminate simply because a tenant goes bankrupt. Rather, it is the terms of the lease that will allow the landlord to terminate it. From this perspective, a landlord might then benefit from a priority claim to a portion of his rent.*
*It should be noted the solutions suggested in this bulletin only apply in the case of an actual bankruptcy, and not in the context of a proposal under the Bankruptcy and Insolvency Act (BIA) or a restructuring under the Companies' Creditors Arrangement Act. Furthermore, while the BIA is federal legislation, our analysis focuses on its application in Quebec.
In most cases, the landlord is entitled to three months' rent in arrears.
Once the commercial lease is terminated, the landlord may recover up to three months’ rent in the order of priority provided for in the BIA. 1 In fact, the landlord ranks sixth, which means that he can be paid before unsecured creditors, but after secured creditors and other classes of prior claims provided for in the BIA, such as reasonable funeral and testamentary expenses in the case of a deceased bankrupt.
The priority granted to the landlord only applies to the amounts collectible as “rent” and excludes any amount relating to any damage caused by the tenant (for example repair costs).
In addition to the three months’ rent in arrears, the landlord may obtain three months’ accelerated rent (future rent), for a total of six months’ rent.
This additional amount can only be received when it is specifically provided for in the commercial lease. This amount also ranks sixth under the BIA.
However, there is a limit. The total amount received in priority may not exceed the amount that the trustee has realized from the tenant’s property on the leased premises. For the balance of its priority claim, namely the three months of arrears and three months of accelerated rent, the landlord will rank the same as any ordinary unsecured creditor.
Publication
Costs awards in trademark opposition proceedings have been long anticipated in Canada.
Publication
On April 1, after more than a year of consultation, research and consideration, Ontario’s Civil Rules Review (CRR) working group released its proposed reforms to the Rules of Civil Procedure – the rulebook that governs litigation in the province.
Publication
Canada’s 45th general election will take place on April 28. Businesses and non-profits that are considering engaging in the political process during this time must know the law and understand how to navigate the rules and restrictions imposed by the Canada Elections Act (CEA).
Subscribe and stay up to date with the latest legal news, information and events . . .
© Norton Rose Fulbright LLP 2025