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Apple sues to break lease on Toronto mall project

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By early 2022, Apple reportedly warned Mizrahi Developments that it could pull out. Apple cited a contract clause that allowed it to walk away with impunity if it missed certain deadlines, though Mizrahi Developments believed it had complied.

Now, according to The Globe and Mail, Apple has filed a lawsuit to terminate its lease on the unfinished project.

“Apple is deeply disappointed by Mizrahi,” Apple Canada said in its filing. “The company regrets that the failure of Mizrahi has led Apple to take steps to end its business relationship.”

Details of Apple’s lawsuit, originally filed in Ontario Superior Court on January 28, 2022, are only now being revealed. According to The Globe and Mail, Apple is seeking C$6.9 million ($5.44 million) in compensation for the delay in the project.

Apple listed 26 projects in the filing, claiming that Mizrahi Development did not meet the project’s deadline. Mizrahi acknowledged there were some delays, but said they were due to factors outside of its control, notably the coronavirus and the 2019 plumbers’ strike.

Apple’s new lawsuit comes after Mizrahi filed a legal application to stop Apple from leaving. In it, the development company said that their progress was actually delayed by the other side as well, waiting for Apple to choose a design for its storefront glass.

Apple’s space in The One building is reportedly built from 34 custom-made glass panels, designed by architecture firm Foster & Partners.

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