Guarantor Obligations for Rent (LTB)

Caselaw.Ninja, Riverview Group Publishing 2021 ©
Date Retrieved:	2024-05-05
CLNP Page ID:	2376
Page Categories:	[Payment of Rent (LTB)]
Citation:	Guarantor Obligations for Rent (LTB), CLNP 2376, <https://rvt.link/bq>, retrieved on 2024-05-05
Editor:	Sharvey
Last Updated:	2024/04/17

HMV Properties Inc., and Elgin Lycett and Dayne Lycett ONSCSM No. 60929/09

18 HMV's position is that having guaranteed the rent payable under the tenancy agreement, Dayne Lycett remained liable to pay rent during the deemed month-to-month renewal provided for by section 38 of the Residential Tenancies Act, 2006.

19 Dayne Lycett's position is that the tenancy agreement that he co-signed was for a one-year term and that he had no obligation to HMV following the expiry of that term.

20 In Kar v. Chung, a case not cited in argument, the Court of Appeal, reversing a decision of the Divisional Court, held that the deemed renewal provided for in subsection 104(1) of the Landlord and Tenant Act did not apply to guarantors, that landlords and tenants are deemed to have renewed their tenancy agreements but that guarantors are not deemed to have done anything. While the language in section 38 of the Residential Tenancies Act, 2006 is not identical to that in subsection 104(1) of the predecessor Act, it does not differ in any material respect and accordingly, the result must be the same.

21 For the reasons given, the action is dismissed.