Lague v. Killiam Properties

Lague v. Killiam Properties

The misrepresentation that the leased unit would be on the ground floor was an essential term of the lease and not a mere inducement; it materially differed from what was provided (third floor) and justified equitable rescission; therefore the lease is rescinded and the Director's order vacated.

Citation
2007 NSSM 58
Parties
Appellant: Mr. David Lague; Respondent: Killam Properties
Court
Nova Scotia Small Claims Court
Jurisdiction
Canada
Judgment Date
29 June 2007
Procedural Posture
Appeal to Small Claims Court From Director of Residential Tenancies / Decision on Appeal (hearing Held June 26, 2007; Decision June 29, 2007)
Outcome
Appeal allowed; lease rescinded; Order of the Director vacated.
Legal Topics
Misrepresentation, Rescission, Lease, Mitigation of Damages
Source Language
English
Residential Tenancies Contract Law Misrepresentation Rescission Lease Mitigation of Damages

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Parties

Mr. David Lague

Appellant

Killam Properties

Respondent

Procedural Posture

Appeal to Small Claims Court From Director of Residential Tenancies / Decision on Appeal (hearing Held June 26, 2007; Decision June 29, 2007)

Legal Issues

  1. 1 Whether the lease is invalid or should be rescinded due to innocent misrepresentation/unilateral mistake/frustration of purpose
  2. 2 Whether the misrepresentation that the unit was on the ground floor constituted a term of the contract such that rescission is available
  3. 3 Whether parties should be returned to their pre-contract positions

Ratio Decidendi

The misrepresentation that the leased unit would be on the ground floor was an essential term of the lease and not a mere inducement; it materially differed from what was provided (third floor) and justified equitable rescission; therefore the lease is rescinded and the Director's order vacated.

Court Disposition

Appeal allowed; lease rescinded; Order of the Director vacated.

Orders

  • Appeal allowed
  • Order of the Director dated May 23, 2007 is vacated