Maitland v. Templeton Place Ltd.

Maitland v. Templeton Place Ltd.

The three months' payment made in addition to the contract monthly rent was, by operation of s.12(1), a security deposit; the landlord accepted more than the one-half monthly rent limit in s.12(2) and failed to comply with trust and return requirements, so the excess $1,485 must be repaid to the tenant; the appellant failed to prove the landlord did not mitigate losses because the landlord re‑leased the premises effective April 1.

Citation
2016 NSSM 24
Parties
Appellant/tenant: GRAEME MAITLAND; Respondent/landlord: TEMPLETON PLACE LIMITED
Court
Nova Scotia Small Claims Court
Jurisdiction
Canada
Judgment Date
30 May 2016
Procedural Posture
Small Claims Court Appeal (residential Tenancies) / Decision on Appeal From Director's Order
Outcome
Appeal allowed in part: Landlord ordered to repay $1,485 to Tenant; Tenant's payment obligation of $2,252.50 to Landlord stayed until landlord pays the $1,485; no costs to either party.
Legal Topics
Security Deposit, Prepaid Rent, Mitigation of Loss, Lease Formation and Variation, Trust Accounts, Statutory Interpretation
Source Language
English

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Parties

GRAEME MAITLAND

Appellant/tenant

TEMPLETON PLACE LIMITED

Respondent/landlord

Procedural Posture

Small Claims Court Appeal (residential Tenancies) / Decision on Appeal From Director's Order

  1. 1 Whether the lease was converted from year-to-year to month-to-month (ground withdrawn)
  2. 2 Whether the landlord properly mitigated its loss
  3. 3 Whether the payment described as prepaid rent constituted a security deposit under the Residential Tenancies Act

Ratio Decidendi

The three months' payment made in addition to the contract monthly rent was, by operation of s.12(1), a security deposit; the landlord accepted more than the one-half monthly rent limit in s.12(2) and failed to comply with trust and return requirements, so the excess $1,485 must be repaid to the tenant; the appellant failed to prove the landlord did not mitigate losses because the landlord re‑leased the premises effective April 1.

Court Disposition

Appeal allowed in part: Landlord ordered to repay $1,485 to Tenant; Tenant's payment obligation of $2,252.50 to Landlord stayed until landlord pays the $1,485; no costs to either party.

Orders

  • Landlord pay Tenant $1,485.00.
  • Tenant pay Landlord $2,252.50 but this obligation is stayed until the Landlord has first paid the Tenant $1,485.00.