Kaminski v$.$ West Town Mall

West Town Mall is a shopping mall in a large urban area, and it includes two major retailers, over $50$ small retail stores, and a food court area with more than $10$ food kiosks. The Kaminskis are a husband and wife who wish to relocate their successful fast food business to the mall. They negotiate all aspects of a lease of space in the food court with Janet Cameron, leasing agent for the corporation that owns West Town Mall. Cameron is an enthusiastic leasing agent and points out a number of benefits in relocating to the mall. She tells them, "You will just love it here in the food court," and tells the potential tenants that the mall has "the highest sales per square foot" in Western Canada. She shows them a computer printout with the name covered up$,$ claiming that the previous tenant in the Kaminskis kiosk had earned $$300000$ in its worst year. She points to a neighboring hot$-$dog stand and states that it is making $$400000$ a year. Also, she shows plans for mall expansion and claims that a customer profile survey forecasts that customer turnover in the food court could increase to $600$ per hour. Relying on Cameron's assurance that all they have to do is "make perogies and count your money," the tenants sign a five$-$year lease with the mall. The lease agreement contains an exemption clause absolving the landlord from liability for any representations regarding the leased premises. Despite their best efforts, the Kaminskis business fails after $15$ months in operation. Total sales for more than a year are only $$138,000.$ The Kaminskis sue the mall and leasing agent, seeking damages and rescission of the lease agreement. At trial, one of the issues is the credibility of the parties to the action. Cameron claims that she qualified all her statements and that she said that West Town Mall is one of the highest selling malls in the west. The judge finds that the Kaminskis are reliable witnesses.

Created by: Judy Koch, BA$,$ LLB$,$ Business Law Professor at Grant MacEwan University, Edmonton, Alberta.

Questions:

What was it about the Kaminskis that made them decide to go ahead?

What did the Leasing agent say during negotiations?