Kristin A. Carnie

Following a successful appeal, the court addressed the disposition of the $15,000 costs awarded by the Divisional Court to the respondent.

The court applied the general rule that when an appeal is allowed, the order under appeal is set aside and costs below are awarded to the successful appellant.

The appellants were awarded $15,000 in costs for the Divisional Court proceedings.

The appellants leased land from the respondent's predecessor and built cottages used as year-round secondary homes.

The respondent sought to significantly increase rent and replace the leases with licences.

The Landlord and Tenant Board and the Divisional Court held that the Residential Tenancies Act, 2006 did not apply because the premises were used for recreational purposes.

The Court of Appeal allowed the appeal, holding that the cottages were 'living accommodation' used as 'rented residential premises' and that the Act applies regardless of whether the premises are used for recreational purposes or as a secondary residence.