The appellant landlord appealed a Small Claims Court decision regarding rent arrears under a commercial lease.
The Divisional Court allowed the appeal in part, finding the trial judge made palpable and overriding errors by failing to recognize personal indemnity clauses in the lease, improperly crediting the tenant for rent deposits despite the lease continuing with a new landlord, and mischaracterizing a claim for damages (interest on borrowed funds) as prejudgment interest.
The court increased the judgment to $13,791 and held the personal respondents jointly liable as indemnifiers.