W.M. v. Universal Property Management System

W.M. v. Universal Property Management System

There was no meeting of the minds when the fixed-term lease was presented and signed; the landlord did not adequately ensure the Appellant, who was vulnerable and under stress, understood and consented to extinguishing year-to-year tenure, therefore the fixed-term lease is not binding and the original year-to-year lease remained in force and automatically renewed on September 1, 2023. The Director's order is set aside. The court noted s.10AB could have been used for renovation displacement but did not decide that issue given the ruling on contract formation.

Citation
2024 NSSM 61
Parties
Appellant / Tenant: W.M.; Respondent / Landlord: Universal Property Management System
Court
Nova Scotia Small Claims Court
Jurisdiction
Canada
Judgment Date
6 August 2024
Procedural Posture
Appeal From an Order of the Director of Residential Tenancies / Hearing on Appeal Before Small Claims Court Adjudicator
Outcome
Appeal allowed; Order of the Director set aside.
Legal Topics
Lease Conversion, Fixed Term Lease, Month to Month Tenancy, Renoviction (s.10 Ab), Capacity to Contract, Meeting of the Minds, Landlord Duty to Vulnerable Tenants
Source Language
English

Case Brief

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Parties

W.M.

Appellant / Tenant

Universal Property Management System

Respondent / Landlord

Procedural Posture

Appeal From an Order of the Director of Residential Tenancies / Hearing on Appeal Before Small Claims Court Adjudicator

  1. 1 Whether s.10AB of the Residential Tenancies Act should have been used for renovation-related displacement
  2. 2 Whether the conversion of a year-to-year tenancy to a fixed-term lease was valid and enforceable
  3. 3 Whether there was a meeting of the minds such that a binding fixed-term lease existed

Ratio Decidendi

There was no meeting of the minds when the fixed-term lease was presented and signed; the landlord did not adequately ensure the Appellant, who was vulnerable and under stress, understood and consented to extinguishing year-to-year tenure, therefore the fixed-term lease is not binding and the original year-to-year lease remained in force and automatically renewed on September 1, 2023. The Director's order is set aside. The court noted s.10AB could have been used for renovation displacement but did not decide that issue given the ruling on contract formation.

Court Disposition

Appeal allowed; Order of the Director set aside.

Orders

  • The Order of the Director is set aside.
  • The Appellant's year-to-year lease for 25 Killkee Gate remains in force and automatically renewed on September 1, 2023.