The practice of law is changing every day, and the effect of changing legislature on businesses is significant. We write about recent developments in the world of tax & business law, keeping a watchful eye on the changing landscape for our clients. See what we’re thinking about, and what your business should be looking out for.
- Business LawPrepaid Rent or Security Deposit? It's All in the Drafting
In 2015, Alberta’s Court of Queen’s Bench and Court of Appeal were asked to determine whether the sum of $3,187,500 (the “Deposit”) paid pursuant to a commercial lease (the “Lease”) was a security deposit or prepaid rent. The Court in Alignvest Private Debt Ltd v. Surefire Industries Ltd, 2015 ABQB 148 (“Surefire”), upheld in York Realty Inv. v. Alignvest Private Debt Ltd., 2015 ABCA 355, ultimately ruled that the Deposit was a security deposit and not prepaid rent. For the Landlord, York Realty, the result required them to deliver up the Deposit to the trustee in bankruptcy.Read More