Lawsuit of the week: Four Seasons’ landlords sue for breach of lease

Landlord Cadillac Fairview Corp. sues Four Seasons Hotels Ltd. for breach of lease, claiming hotel on West Georgia Street isn’t up to standard

Commercial landlord Cadillac Fairview Corp. is suing Four Seasons Hotels Ltd. for breach of lease, claiming the company’s hotel on West Georgia isn’t furnished and equipped up to the standard of a “typical first-class luxury hotel.”

Cadillac Fairview Corp. Ltd., VANPC LP and VANPC GP Ltd. filed a notice of civil claim in BC Supreme Court on October 20. According to the lawsuit, the original lease was signed in 1976 between Four Seasons Hotels and the plaintiffs’ predecessor Pacific Centre Ltd., and was renewed in 1998 for a term that ends in 2020. The plaintiffs became the landlords in February 2017, the lawsuit says.

In June 2015, Pacific Centre Leaseholds was the landlord that “discovered that Four Seasons Hotels had breached and was in default of the lease since Four Seasons Hotels had failed to furnish and equip the hotel in accordance with the standard of a typical first-class luxury hotel.”

The plaintiffs claim Four Seasons fell “below the standard” when compared with other Vancouver luxury hotels such as the Rosewood Hotel Georgia, the Shangri-La Hotel, the Fairmont Pacific Rim and the Fairmont Waterfront.

According to the claim, the Four Seasons is furnished “in an inconsistent and uninviting manner, with an overall appearance that was tired, dated and not in keeping with typical first-class luxury hotels. Among other things, certain public areas in the hotel had been neglected and had not been updated for over 40 years and the hotel’s guestrooms had been furnished and equipped with low-quality products and furnishings.”

The hotel, they claim, is “inconsistent” with the Four Seasons brand and the defendant has allegedly failed to “cure its default” within 60 days of being notified.

The landlords seek a declaration that Four Seasons Hotels is in default of the lease and an order for performance requiring the company to “furnish and equip the hotel in accordance with the standard of a typical first-class luxury hotel.”

The allegations have not been tested or proven in court, and Four Seasons Hotels had not filed a response to the claim by press time.

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