Ly Innovative Group v. Facilitate Settlement Corp.: $300000 Rent Arrears Dispute
Toronto landlord seeks eviction and $300000 in rent arrears from long-term non-paying tenant
Summarized by RentZenLast updated: August 16, 2024
Case Summary
29 Citation Drive, Toronto, ON M2K1S5
Dispute resolved in
agreement
Balance Owed to Landlord
$300,000
Dispute Categories
Agree with the ruling?
Timeline
Application Date
Jan 2022
Hearing Date
Nov 2023
Order Date
Nov 14, 2023
Tenancy End Date
Nov 2023
Dispute Summary
The landlords sued for possession and payment of rent arrears approaching $300,000 after the tenant failed to pay monthly rent of $9,500 for three years, except for three months of prepaid rent. The landlords moved for default judgment against the tenant corporation and one individual, while the defendants resisted and moved to set aside the noting of default.
Determinations
- Parties reached a settlement
- Court not prepared to issue the proposed consent order
- Jane Doe not properly identified or noted in default
- Insufficient details provided about the settlement
- Outstanding counterclaim not addressed
- Matter not finally resolved
Case Study
The court was not provided with sufficient details of the settlement to exercise discretion regarding issuing a writ of possession. The order did not address the outstanding counterclaim of Jane Doe or finally resolve the matter. The court gave parties the option to argue the motion on its merits or adjourn until the need for a writ of possession could be determined.
Arguments and Actions
Landlord
Arguments
Landlords sought a writ of possession and termination of the tenancy based on significant rent arrears.
Actions
Landlords sued for possession and payment of rent arrears in January 2022. They noted Facilitate Settlement Corp. and Mr. Wu in default and moved for a default judgment.
Procedural Errors
Landlords omitted to note Jane Doe in default and did not correctly identify her.
Tenant
Arguments
Tenants resisted the motion for default judgment and moved to set aside the noting of default.
Actions
Tenant remained in possession of the rental unit for three years without paying monthly rent of $9,500, except for three months of prepaid rent.
Aggravating Factors
Tenant failed to pay rent for three years, accumulating arrears of nearly $300,000.
Decision Summary
The court adjourned the motion to November 20, 2023, directing the defendants to properly identify Jane Doe. The parties were given the option to argue the motion on its merits if the matter is not resolved by then. The court remained seized of the matter.
Adjudicator Details
Superior Court of Justice
Total Orders
4
Landlord Favorable
50.0%
Tenant Favorable
25.0%
Mutual Agreement
25.0%
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Financial Details
Lawful Rent
$9,500
Rent Arrears
$300,000
Total Owing
$300,000 (Owed to Landlord)
Source
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