Jegasundaram v. Malhotra Holdings: Appeal Quashed in Rent-to-Own Dispute
Divisional Court quashes tenants' appeal in rent-to-own dispute, upholding LTB's eviction order for non-payment of rent
Summarized by RentZenLast updated: August 16, 2024
Case Summary
Decision in favor of
landlord
Balance Owed to Landlord
$30,000
Dispute Categories
Agree with the ruling?
Timeline
Application Date (Estimate)
Nov 2019
Hearing Date
Jun 2021
Order Date
Jun 8, 2021
We estimate Application Date using rent arrears.
Dispute Summary
Tenants appealed an LTB decision that found they were in a landlord/tenant relationship with the respondent and ordered termination of tenancy for non-payment of rent. Tenants claimed they were owners under a 'rent to own' agreement. The Divisional Court quashed the appeal, finding no viable error of law and that the appeal was an abuse of process due to delays and non-payment of rent.
Determinations
- Appeal quashed due to no viable error of law
- Interpretation of 'rent to own' agreement is a question of mixed fact and law
- Tenants' claim of ownership does not constitute a legal error
- Delay in perfecting appeal and non-payment of rent constitute abuse of process
- Tenants have more rights as tenants than they would as owners in mortgage enforcement proceedings
Case Study
The court found that the interpretation of the 'rent to own' agreement was a question of mixed fact and law, from which no appeal lies from the LTB. The tenants' claim of being owners was not sufficient to constitute a legal error. The court also noted that the tenants' failure to pay rent while pursuing their claim against the former landlord was not justified.
Arguments and Actions
Landlord
Arguments
Landlord argued that the appeal should be quashed due to no viable error of law and abuse of process.
Actions
Landlord became the property owner through mortgage enforcement proceedings against the former landlord.
Tenant
Arguments
Tenants argued they were owners 'in all but name' and that they were denied natural justice in the LTB hearing.
Actions
Tenants claimed to be owners under a 'rent to own' agreement and refused to pay rent to avoid undermining their claim against the former landlord.
Procedural Errors
Failure to perfect appeal, failure to file material for the motion to quash, multiple adjournment requests
Aggravating Factors
Lengthy period of non-payment of rent, delay in perfecting appeal, multiple adjournment requests
Decision Summary
The Divisional Court quashed the tenants' appeal of the LTB decision, finding no viable error of law and that the appeal was an abuse of process. The court granted a temporary stay until July 30, 2021, allowing tenants to pay all arrears and costs to avoid eviction. If full payment is not made by the deadline, the LTB's eviction order will come into full force and effect.
Adjudicator Details
Divisional Court
Total Orders
5
Landlord Favorable
100.0%
Tenant Favorable
0.0%
Mutual Agreement
0.0%
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Financial Details
Lawful Rent
$1,523
Rent Arrears
$30,000
Total Owing
$30,000 (Owed to Landlord)
Source
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