Thomas Hanrahan

Following a costs endorsement, the court issued a supplementary endorsement addressing pre-judgment interest and security for costs.

The court found no special circumstances to depart from the statutory pre-judgment interest rate of 4.5 percent.

Additionally, the court ordered the return of the $10,725 security for costs, plus any interest, to the plaintiffs.

Homeowners sued a property management company for breach of contract and negligence after tenants placed by the manager operated a methamphetamine lab that caused an explosion and rendered the property uninhabitable.

The court found the manager misrepresented that the management contract was identical to a sample contract, which altered a liability clause from negligence to gross negligence.

Applying principles from cases including Tilden Rent-A-Car v. Clendenning and Crocker v. Sundance Northwest Resorts Ltd., the court held the defendant was estopped from relying on the altered limitation clause.

The manager breached its contractual obligations and the standard of care by failing to conduct promised tenant screening, failing to disclose deficiencies in the screening process, and failing to pursue eviction when arrears and warning signs emerged.

These failures caused the plaintiffs’ loss.

The plaintiff brought a motion to amend the Statement of Claim to replace the fictitious name 'John Doe' with the name of the defendant insurer's employee, Maria Diolanda.

The defendant opposed the motion, arguing it was an attempt to add a new party after the expiry of the limitation period.

The court found that the original pleading clearly pointed the 'litigation finger' at the person who sold the insurance policy, making this a case of misnomer rather than adding a new party.

The motion to correct the misnomer was granted.