
The Hudson's Bay Company will have to reimburse Penticton's Cherry Lane Shopping Centre for its legal fees incurred throughout a lengthy fight in court over unpaid rent.
On March 21, 2022 in B.C. Supreme Court, Justice Christopher Giaschi ruled the mall was due the costs of its petition, injunction application and double any costs incurred related to those that were incurred after May 17, 2021.
Giaschi had previously ruled on a lawsuit involving the two parties, ordering The Bay to pay up after it ceased paying its roughly $78,000 monthly rent to the mall, citing pandemic-related difficulties.
He ruled in June 2021 that The Bay needed to pay the roughly $620,000 in outstanding rent it had accrued since it ceased paying in April 2020, plus $85,000 in taxes and lease costs reconciliation.
In this most recent decision, Giaschi awarded unspecified legal costs on top of that.
"This was not a complex case. As I have indicated, the petition and injunction application essentially turned on a single issue; whether HBC was entitled to withhold rent," Giaschi said.
"As a sophisticated entity, HBC should have known there was a reasonable possibility, if not probability, that it would lose on that issue. It chose to roll the dice."