The tenants appealed an Ontario Rental Housing Tribunal decision that dismissed their application for rent abatement and damages due to the landlord's failure to repair.
The tribunal had ruled that because the repair issues were addressed in a previous order, the new application was barred by res judicata.
The Divisional Court held that the tribunal erred in law, as the tenants were seeking relief for ongoing breaches and new expenses incurred after the landlord failed to comply with the previous order.
The appeal was allowed and the matter remitted to the tribunal for a new hearing.