Apple sues to terminate flagship store in Canada

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Just last month, Apple threatened to pull out of the planned development for its flagship retail store in downtown Toronto. The 85-story building called, “The One,” is under construction and in development by Sam Mizrahi. Now, the tech giant is suing the developer in order to terminate its lease. Apple said it is “disappointed” in Mizrahi Developments and is owed $6.9 million in damages for missed deadlines. 

According to The Globe and Mail in Canada, The One will be the “tallest commercial condo building” in Canada. It’s been six years since both companies first signed a lease agreement, but now the store isn’t likely to happen. 

Back on January 28, Apple Canada Inc. created a filing with Ontario’s Superior Court of Justice. The filing says it “regrets that Mizrahi’s failures have resulted in Apple having to take the step of ending its relationship with Mizrahi”. Stated in Apple and Mizrahi’s lease agreement, Apple can leave the project without penalty if Mizrahi misses certain deadlines. 

Mizrahi claims his company has not missed any deadlines and Apple cannot rescind the lease. In a legal application from last year, Mizrahi said it would “suffer irreparable harm from losing a world-class tenant that was intended to be an anchor tenant for a world-class property, which is a loss that cannot be compensated in damages.”

Apple is seeking a court order noting that Mizrahi missed important deadlines and it is able to terminate the lease. Apple is also trying to claim £18,600 because of an agreement between Apple, Mizrahi Developments, and the building’s architect, Foster + Partners

It’s an ongoing battle for the flagship store

The Globe and Mail reports that Mizrahi blames the delays on events out of its control. There was a plumber and pipefitter strike in 2019 across Ontario as well as the COVID-19 pandemic, which has delayed a number of construction projects all over. Apple disagrees and claims in its application that the delays “were the result of Mizrahi’s inability to manage the project.”

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