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Property manager liable for failing promised tenant screening and eviction diligence.
Homeowners sued a property management company for breach of contract and negligence after tenants placed by the manager operated a methamphetamine lab that caused an explosion and rendered the property uninhabitable.
The court found the manager misrepresented that the management contract was identical to a sample contract, which altered a liability clause from negligence to gross negligence.
Applying principles from cases including Tilden Rent-A-Car v. Clendenning and Crocker v. Sundance Northwest Resorts Ltd., the court held the defendant was estopped from relying on the altered limitation clause.
The manager breached its contractual obligations and the standard of care by failing to conduct promised tenant screening, failing to disclose deficiencies in the screening process, and failing to pursue eviction when arrears and warning signs emerged.
These failures caused the plaintiffs’ loss.
Transfer severing joint tenancy upheld; capacity established and occupation rent denied.
A family dispute arose regarding ownership of a Toronto home held in joint tenancy by two parents and their son.
Shortly before his death, the father executed a transfer severing the joint tenancy so that his interest would pass under his will to his daughter.
The plaintiffs challenged the transfer, alleging the father lacked capacity or was subject to undue influence, and sought occupation rent from the daughter who continued living in the property.
The court preferred the evidence of the drafting lawyer and defence expert and found the father understood the nature and consequences of severing the joint tenancy and was not unduly influenced.
The court also rejected claims that the son held his interest in trust for the parents and declined to award occupation rent.
The plaintiffs’ claims were dismissed and the severance of the joint tenancy upheld.
