Question 5 - Real Estate

JK Properties Inc. owns several shopping malls in Toronto. The Relax Spa has been a JK tenant for 7 years. It provides beauty and spa treatments in a quiet luxurious setting. Recently Dog Days moved into the space next to Relax. Dog Days grooms, boards and sells dogs. Relax Spa says the noise and smell from Dog Days is ruining their business and sales dropped 30% since Dog Days moved in. JK and Dog Days both say there is nothing illegal. Relax disagreed and reduced its rent by 30% a month ($9,000). After 3 months, the Relax owners came to work to find the locks had been changed and they couldn't get in. JK's note stated Relax owed $27,000 in back rent, JK had seized $20,000 ofRelax'sgoods and planned to sell them in 7 days to get this money. Relax refused to pay so JK sold the goods for $20,000 and now wants the other $7,000 and told Relax it had to move out.

1. Discuss thelegal rights of both the landlord and the tenant.Includeany remediesthatmay be available tothe landlord and tenant.
2. Jim King is the President of JK and he owned a cottage as a joint tenant with his brother Peter. Recently Peter died and his wife Tina says she is entitled to Peter's half of the cottage as Peter left all he owned to her. Jim claims the cottage is now all his.Advise Jim and Tina of their rights.