The appellant landlord appealed a Small Claims Court decision dismissing its claim for property damages against a former tenant for lack of jurisdiction.
The Deputy Judge had ruled that the Landlord and Tenant Board (LTB) had exclusive jurisdiction over the matter.
The Divisional Court found that the Deputy Judge erred in law, as section 89(1) of the Residential Tenancies Act requires a tenant to be in possession of the rental unit for the LTB to have jurisdiction over damage claims.
Since the tenant had vacated the unit, the Small Claims Court had jurisdiction.
The court also found the Deputy Judge made a palpable and overriding error in finding that a second LTB hearing had occurred where damages could have been addressed.
The Federation of Rental-Housing Providers of Ontario intervened.
The appeal was allowed and the matter remitted to the Small Claims Court.