• Trustee Cannot Disclaim Bankrupt Landlord’s Lease
  • January 14, 2016 | Authors: Ian Aversa; Jeremy Nemers
  • Law Firm: Aird & Berlis LLP - Toronto Office
  • In Aventura2, a recent decision of the Ontario Superior Court of Justice (Commercial List) (the “Court”), the Honourable Justice Penny confirmed that a bankruptcy trustee does not have the authority, pursuant to section 30(1)(k) of the Bankruptcy and Insolvency Act (the “BIA”), to disclaim a lease on behalf of a bankrupt landlord. Rather, a trustee’s authority to disclaim a lease is limited to situations where the bankrupt is the tenant. His Honour held that, where the bankrupt is the landlord and “[w]here the tenant is not in breach, neither the landlord, nor his trustee in bankruptcy, has the power to terminate the lease.”3