Panco Construction Ltd. v. Paydar

Panco Construction Ltd. v. Paydar

Lease Schedule B provisions that assign fixed prices for cleaning and repairs and effectively demand perfection are contrary to the RTA and unenforceable; landlord failed to prove that alleged deficiencies went beyond ordinary cleanliness or ordinary wear and tear and failed to prove causation for the refrigerator damage, therefore the security deposit must be returned in full along with filing costs.

Citation
2026 NSSM 4
Parties
Landlord: Panco Construction Ltd.; Tenant: Faranak Paydar
Court
Nova Scotia Small Claims Court
Jurisdiction
Canada
Judgment Date
23 February 2026
Procedural Posture
Appeal From the Director of Residential Tenancies / Decision on Appeal
Outcome
Appeal dismissed in part; full return of security deposit ordered
Legal Topics
Security Deposit, Ordinary Wear and Tear, Lease Term Enforceability, Cleaning Charges, Refund of Deposit, Causation of Damage
Source Language
English
Residential Tenancies Property Law Contract Law Security Deposit Ordinary Wear and Tear Lease Term Enforceability Cleaning Charges Refund of Deposit +1 more

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Parties

Panco Construction Ltd.

Landlord

Faranak Paydar

Tenant

Procedural Posture

Appeal From the Director of Residential Tenancies / Decision on Appeal

Legal Issues

  1. 1 Whether the landlord may retain the tenant's security deposit for alleged cleaning and repair costs
  2. 2 Whether lease Schedule B terms that set fixed charges for cleaning and repairs are enforceable under the RTA
  3. 3 Whether the alleged damage to the refrigerator was caused by the tenant and therefore deductible from the deposit

Ratio Decidendi

Lease Schedule B provisions that assign fixed prices for cleaning and repairs and effectively demand perfection are contrary to the RTA and unenforceable; landlord failed to prove that alleged deficiencies went beyond ordinary cleanliness or ordinary wear and tear and failed to prove causation for the refrigerator damage, therefore the security deposit must be returned in full along with filing costs.

Court Disposition

Appeal dismissed in part; full return of security deposit ordered

Orders

  • Return $1100.00 security deposit to Faranak Paydar
  • Landlord to pay tenant's costs of filing with Residential Tenancies (costs awarded)