The landlords appealed a decision of the Landlord and Tenant Board ordering them to repay unlawful rent increases to the tenants.
The landlords argued that section 135.1 of the Residential Tenancies Act, which deems certain rent increases not void if paid for 12 consecutive months, prevented the Board from ordering repayment.
The Divisional Court found that while the Board erred in characterizing the legislative purpose of section 135.1, it did not err in interpreting 'finally determined' or in applying the law to the facts.
The appeal was dismissed, and the landlords were required to repay the illegal rent.