Aarons Sales and Lease v. Rafuse

Aarons Sales and Lease v. Rafuse

The defendant's late payments and temporary unauthorized relocation of goods were not fundamental breaches that deprived the claimant of substantially the whole benefit of the contracts; therefore the claimant remained obligated to the contractual insurance provision covering loss by fire, the contract must be construed against the drafter, and the defendant is entitled to the insurance benefit and repayment of her payments and filing costs.

Citation
2013 NSSM 40
Parties
Claimant: Aarons Sales and Lease; Defendant: Heather Rafuse
Court
Nova Scotia Small Claims Court
Jurisdiction
Canada
Judgment Date
2 July 2013
Procedural Posture
Small Claims Court / Decision
Outcome
Claim dismissed; judgment granted on counterclaim for defendant.
Legal Topics
Fundamental Breach, Lease to Own Agreements, Risk of Loss, Contract Interpretation, Counterclaim, Damages
Source Language
English
Contract Law Insurance Consumer Protection Fundamental Breach Lease to Own Agreements Risk of Loss Contract Interpretation Counterclaim +1 more

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Parties

Aarons Sales and Lease

Claimant

Heather Rafuse

Defendant

Procedural Posture

Small Claims Court / Decision

Legal Issues

  1. 1 Whether the defendant's late payments and unauthorized relocation of leased goods constituted fundamental breaches excusing the lessor from performing the contractual insurance obligation
  2. 2 Whether the lease's insurance provision covers loss by fire where goods were moved without prior authorization
  3. 3 Whether the defendant is entitled to repayment of amounts paid and filing costs under her counterclaim

Ratio Decidendi

The defendant's late payments and temporary unauthorized relocation of goods were not fundamental breaches that deprived the claimant of substantially the whole benefit of the contracts; therefore the claimant remained obligated to the contractual insurance provision covering loss by fire, the contract must be construed against the drafter, and the defendant is entitled to the insurance benefit and repayment of her payments and filing costs.

Court Disposition

Claim dismissed; judgment granted on counterclaim for defendant.

Orders

  • Claim dismissed.
  • Judgment for the Defendant on the counterclaim in the amount of $691.60.