Frustration of Contract by Fire (LTB)

Caselaw.Ninja, Riverview Group Publishing 2021 ©
Date Retrieved:	2024-05-19
CLNP Page ID:	1952
Page Categories:	[Termination of Tenancy Because of Fire],
Citation:	Frustration of Contract by Fire (LTB), CLNP 1952, <>, retrieved on 2024-05-19
Editor:	P08916
Last Updated:	2022/07/05

TEL-32649-12 (Re), 2013 CanLII 51226 (ON LTB)

Order under Section 9(2) Residential Tenancies Act, 2006 File Number: TEL-32649-12

Y.Y. (the 'Landlord') applied for an order to determine whether the Residential Tenancies Act, 2006 (the 'Act') applies.

This application was heard in Whitby on February 26, 2013. The Landlord and A.T. and L.W. (the 'Tenants') attended the hearing.

Evidence:

The following evidence was given at the hearing. There was an agreement between the parties that the Tenants would rent the unit from the Landlord. The Tenants did pay rent for the right to occupy the rental unit commencing June 1, 2012. On December 1, 2012 there was a fire in the rental unit that rendered the unit uninhabitable. The fire was caused by a cooking incident involving the Tenants. The damage was extensive and still has not been fixed. The lower unit was also damaged and had to be vacated by the tenants in that unit. It will be several months before the complex can be habitable.

The Tenants have been living in a Hotel and their insurance company is paying for the repairs as well as their current expenses related to housing.

Determinations:

1. The Residential Tenancies Act, 2006 did apply to this unit from June 1, 2012 until December 1, 2012. At that time the unit was deemed uninhabitable and the tenancy agreement became frustrated pursuant to the Frustrated Contracts Act and as permitted under section 19 of the Residential Tenancies Act, 2006 (RTA).

2. As a result of the lengthy period of time required to make repairs to the unit there is no foreseeable date that the Tenants would be permitted back into the rental unit. There is no requirement under the RTA for the Landlord to offer the Tenants first right of refusal when the unit does become habitable.

3. Based on the evidence provided and the fact this vacancy of the rental unit is not for a short period of time I have deemed the rental contract to be frustrated as of December 1, 2012.

It is ordered that:

1. The Act applies to the unit from June 1, 2012 until December 1, 2012.

March 4, 2013

SWL-32360-12 (Re), 2012 CanLII 27932 (ON LTB)

Order under Section 69

Residential Tenancies Act, 2006

File Number: SWL-32360-12

AF (the 'Landlord') applied for an order to terminate the tenancy and evict AW (the 'Tenant') because she, or another occupant of the rental unit wilfully or negligently caused undue damage to the premises. The Landlord has also applied for an order requiring the Tenant to compensate the Landlord for the damage.

This application was heard in Waterloo on March 14, 2012. Only the Landlord and his representative, PS, attended the hearing. As of 11:03 a.m., the Tenant was not present or represented at the hearing although properly served with notice of this hearing.

Determinations and Reasons:

1. The Tenant moved into the rental unit, which is one of fourteen townhouses in the residential complex, in February of 2010.

2. Recently, the Landlord came to believe that as many as ten people were occupying the rental unit, in violation of the tenancy agreement and municipal by-laws. An N5 termination notice was served by the Landlord on February 17, 2012.

3. Two days later, a fire broke out in the rental unit. A report prepared for insurance purposes, and entered into evidence, concluded that the fire was started by children playing with matches in a bedroom closet.

4. The fire rendered the rental unit uninhabitable. The Landlord will need to repair extensive fire and water damage. However, the Tenant has left furniture and cluttered piles of other personal possessions in the rental unit, which are obstructing repair efforts.

5. While the Landlord’s insurer will cover the repair costs, the Landlord has paid a $1,000.00 deductible on the damage claim.

6. I am satisfied that an occupant permitted into the rental unit by the Tenant has negligently caused undue damage, for which the Landlord has incurred costs of $1,000.00.

7. There are no circumstances present to deny termination of the tenancy. However, the termination will be delayed to allow the Tenant to remove her personal possessions.

It is ordered that:

1. The tenancy between the Landlord and the Tenant is terminated, as of March 23, 2012. The Tenant must move out of the rental unit on or before March 23, 2012.

2. The Tenant shall on or before March 23, 2012 remove all her belongings from the rental unit. If the Tenant fails to remove her belongings from the rental unit as set out in this paragraph, the Landlord may dispose of the Tenant’s belongings.

3. The Tenant shall pay to the Landlord $1,000.00, which represents the reasonable costs of repairing the damage.

4. The Tenant shall also pay to the Landlord $170.00 for the cost of filing the application.

5. If the Tenant does not pay the Landlord the full amount owing on or before March 21, 2012, she will start to owe interest. This will be simple interest calculated from March 22, 2012 at 3.00% annually on the balance outstanding.

6. If the unit is not vacated on or before March 23, 2012, then starting March 24, 2012, the Landlord may file this order with the Court Enforcement Office (Sheriff) so that the eviction may be enforced.

7. Upon receipt of this order, the Court Enforcement Office (Sheriff) is directed to give vacant possession of the unit to the Landlord on or after March 24, 2012. The Sheriff is requested to expedite the enforcement of this order.

Order under Sections 30, 31 and 135 Residential Tenancies Act, 2006 File Number: SWT-34622-12

5. On March 6, 2012, the residential complex was destroyed by fire and became uninhabitable, which made the terms of the tenancy agreement impossible to perform. Pursuant to section 19 of the Act, the doctrine of frustration of contract and the Frustrated Contracts Act apply. As a result, the Tenant is entitled to recover, from the Landlord, the sums he paid in pursuance of the tenancy agreement, specifically the rent deposit of $750.00 and pro-rated rent totalling $206.88 for the eight-day period from March 7, 2012 to March 14, 2012.

2. The tenancy between the Landlord and the Tenant was terminated as of March 6, 2012, as a result of the tenancy agreement being frustrated by fire.