Killiam Properties Inc. v. Corkery; Killiam Properties v. Ferguson

Killiam Properties Inc. v. Corkery; Killiam Properties v. Ferguson

Adjudicator held landlord discharged statutory burden: after adjustments and disallowances (insurance adjusted to actual monthly figure, water expense adjusted for leak impact, capital portion of repairs reclassified and amortized, unsubstantiated "other" disallowed), demonstrated operating expenses rose approximately 21.24% between the comparative years which exceeds the proposed lot rent increase (about 12–13%), therefore the Director's orders disallowing the increases were overturned and the landlord's notices of increase are allowed.

Citation
2006 NSSM 27
Parties
Appellant/landlord: Killam Properties Inc.; Respondents/tenants: Joe & Marie Corkery; Respondent/tenant: Lorraine Ferguson
Court
Nova Scotia Small Claims Court
Jurisdiction
Canada
Judgment Date
17 October 2006
Procedural Posture
Residential Tenancies Act Rent Increase Review (small Claims Court Appeal of Director's Order) / Decision After Hearing
Outcome
Notices of rent increase allowed; landlord met burden that operating expenses increased sufficiently to permit proposed increases. Rent increases effective January 1, 2007.
Legal Topics
Rent Increase, Mobile Home Park, Statutory Interpretation, Operating Vs Capital Expenses, Regulatory Compliance, Evidence Sufficiency, Amortization of Capital Costs
Source Language
English
Residential Tenancies Administrative Law Property Law Housing Law Rent Increase Mobile Home Park Statutory Interpretation Operating Vs Capital Expenses +3 more

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Parties

Killam Properties Inc.

Appellant/landlord

Joe & Marie Corkery

Respondents/tenants

Lorraine Ferguson

Respondent/tenant

Procedural Posture

Residential Tenancies Act Rent Increase Review (small Claims Court Appeal of Director's Order) / Decision After Hearing

Legal Issues

  1. 1 Whether landlord satisfied burden to justify proposed rent increase under s.14 and applicable regulations
  2. 2 Whether the landlord provided the required information and adequate substantiation for expense items
  3. 3 Whether specific expenditures (repairs/maintenance, other items) are operating expenses or capital costs

Ratio Decidendi

Adjudicator held landlord discharged statutory burden: after adjustments and disallowances (insurance adjusted to actual monthly figure, water expense adjusted for leak impact, capital portion of repairs reclassified and amortized, unsubstantiated "other" disallowed), demonstrated operating expenses rose approximately 21.24% between the comparative years which exceeds the proposed lot rent increase (about 12–13%), therefore the Director's orders disallowing the increases were overturned and the landlord's notices of increase are allowed.

Court Disposition

Notices of rent increase allowed; landlord met burden that operating expenses increased sufficiently to permit proposed increases. Rent increases effective January 1, 2007.

Orders

  • The rent on the following 19 units, including that of the Respondents Joe and Marie Corkery of 17 Shamrock Drive, in SCCH NO. 06-269339, shall effective January 1, 2007, increase to $280.00 per month: 39 General Avenue; 9, 19, 20 and 22 Glenda Crescent; 23 Homeward Avenue; 7, 15, 17, 19, 24, 25, 26, 33, 36 and 38...
  • The rent on the following 26 units, including that of the Respondent Lorraine Ferguson of 31 General Avenue, in SCCH NO. 06-269639, shall effective January 1, 2007, increase to $280.00 per month: 12, 21, 28, 30 and 31 General Avenue; 3, 28, 32, 34, 45, 49, 65, 66, 71 and 73 Glenda Avenue; 3, 5, 7, 8, 9, 11, 15, 21,...