The Bay in the Cherry Lane Shopping Centre pictured in 2020. (Monique Tamminga - Western News)

The Bay in the Cherry Lane Shopping Centre pictured in 2020. (Monique Tamminga - Western News)

The Bay to pay Penticton’s Cherry Lane mall’s legal fees

The judgment was filed in Victoria Supreme Court on March 21

Penticton’s Cherry Lane Shopping Centre has received another judgment in their favour against the Hudson’s Bay Company.

In a virtual session of B.C. Supreme Court in Victoria on March 21, Justice Christopher Giaschi ruled in favour of a recent application from Cherry Lane on the costs of their legal action.

READ MORE: Supreme Court Justice rules Bay has to pay Penticton’s Cherry Lane mall

Giaschi’s recent judgement states that Cherry Lane was entitled to the cost of its petition, the cost of its injunction application, and double the cost of both for any costs after May 17, 2021.

According to the claim filed by Cherry Lane on Feb. 22, Cherry Lane had proposed a deal on May 12, 2021 to settle its petition and the injunction in exchange for rent, arrears, interest and costs. The offer also included letting the Bay keep their location in the Cherry Lane Mall to lease.

That deal was rejected, and the case went to a hearing before Justice Giaschi.

In a Supreme Court ruling published on June 17, 2021, Justice Giaschi ruled that the Hudson’s Bay Company had defaulted on its obligation to pay its rent to the mall, and that it is entitled to relief from forfeiture of its location in the mall if the company pays out the outstanding rent the company owes.

In April 2020, the Bay stopped paying its rent, citing the ongoing pandemic. In a lawsuit filed in November by Cherry Lane, they claimed they were owed $546,255 in unpaid rent since April.

Legal costs were not laid out explicitly in the June judgement, however Justice Giaschi had given both parties permission to speak with him following his decision.

A civil claim from the Hudson’s Bay Company on whether or not Cherry Lane had provided adequate safety measures during the pandemic remains ongoing.

The exact legal costs will be assessed by the court before being filed to the Hudson’s Bay Company for payment.

To report a typo, email: editor@pentictonwesternnews.com.


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