The tenants appealed an order of the Landlord and Tenant Board terminating their tenancy and evicting them for committing an illegal act (breach of zoning by-law).
The Divisional Court found the Board erred by reversing the onus of proof regarding the zoning issue when there was no evidence the cabin was in the prohibited zone.
Furthermore, the Board erred in law by failing to dismiss the eviction application under s. 83(3) of the Residential Tenancies Act.
The court found the eviction application was brought because the tenants had successfully enforced their legal rights to resist an illegal rent increase, which mandates refusal of the eviction regardless of the landlord's good or bad faith.
The appeal was allowed and the eviction application dismissed.
