Wong v. Smart
- Citation
- 2001 BCSC 832
- Status
- Judgment
- Jurisdiction
- Canada
- Court
- Supreme Court of British Columbia
- Decision
- 7 June 2001
- Posture
- Show Cause Summons Under S. 25 of the Commercial Tenancy Act / Hearing on Show Cause Summons (adjournment Decision)
- Language
- English
More details
- Court
- Supreme Court of British Columbia
- Decision
- 7 June 2001
- Posture
- Show Cause Summons Under S. 25 of the Commercial Tenancy Act / Hearing on Show Cause Summons (adjournment Decision)
- Language
- English
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court exercised its discretion to adjourn the landlord's application on condition that the tenant pay $1482.95 by cash or certified cheque by noon June 11, 2001; failure to comply permits the landlord to continue the application by filing a praecipe returnable June 12, 2001, and the court indicated possession and costs would likely follow if payment is not made.
Court disposition
Application adjourned on condition the tenant pay $1482.95 by cash or certified cheque by noon June 11, 2001; if not paid landlord may proceed by filing a praecipe returnable June 12, 2001 and the landlord should anticipate an order for possession and entitlement to costs.
Orders
- Adjourned the landlord's application on the condition that the tenant pay the landlord $1482.95 by cash or certified cheque no later than noon June 11, 2001.
- If payment is not made the landlord may continue the application by filing a praecipe returnable June 12, 2001.
- If the court grants the landlord's order on or after June 12, 2001 the landlord will be entitled to the costs of today's application.
02
Material facts
Parties
Chun Man Wong
Landlord Counsel: Rowena Wong as agentYin Ling Wong
Landlord Counsel: Rowena Wong as agentSusan Smart
Tenant Counsel: Acting on Her Own BehalfAmounts and remedies
- Monthly Rent Base: CAD 950
- Garbage Charge Per Month: CAD 24
- Storage Charge Per Month: CAD 100
- Total Monthly Rent and Tax: CAD 1,149.18
- Deposit Held by Landlord: CAD 950
- Landlord Claimed Arrears: CAD 667.54
- Adjournment Payment Condition: CAD 1,482.95
- Tenant Improvements Spent: CAD 4,500
03
Procedural history
Posture
Show Cause Summons Under S. 25 of the Commercial Tenancy Act / Hearing on Show Cause Summons (adjournment Decision)
04
Questions and positions
Legal issues
- 01
Whether the tenant is in rent arrears sufficient to justify an order for possession under s.25 of the Commercial Tenancy Act
- 02
Whether the landlord is entitled to apply the deposit against rent and damages
- 03
Whether the tenant should be ordered to vacate or be granted conditional adjournment
- 04
Whether costs should be awarded to the landlord
Party arguments
- Applicant
- Landlord sought immediate possession and vacatur by June 16, 2001 alleging rent arrears (claimed $667.54), sporadic payments, NSF cheques, breach by cluttering premises and nuisance to other tenants; asked that the deposit be applied to outstanding rent and damages and for costs of the application.
- Respondent
- Tenant disputed the arrears calculation, could not fully account for payments, acknowledged bounced cheque but claimed last cash payment May 18, offered to pay June in full on June 2 which landlord refused, asserted $4500 in tenant improvements and sweat equity, represented ability to pay going forward and asked for opportunity to continue business.
05
Court’s reasoning
Legal principles
- 01
Commercial Tenancy Act, s.25
Court may adjourn a show cause application under s.25 of the Commercial Tenancy Act and impose conditions to protect parties' interests
- 02
Judicial discretion / principles of equity (Supreme Court practice)
Judicial discretion to grant possession is exercised in light of equities including tenant investment and prospects of business survival
06
Ratio, limits and disposition
Ratio decidendi
The court exercised its discretion to adjourn the landlord's application on condition that the tenant pay $1482.95 by cash or certified cheque by noon June 11, 2001; failure to comply permits the landlord to continue the application by filing a praecipe returnable June 12, 2001, and the court indicated possession and costs would likely follow if payment is not made.
Obiter and limits
- Tenant has significant sweat equity and recent start up of business weighed against immediate termination which would likely doom the business
- Landlord's frustration with sporadic payments noted but insufficient to override tenant's investment without an opportunity to cure arrears
- Court was uncertain how landlord calculated arrears but assumed figure reflected recent payments including surcharges
Court disposition
Application adjourned on condition the tenant pay $1482.95 by cash or certified cheque by noon June 11, 2001; if not paid landlord may proceed by filing a praecipe returnable June 12, 2001 and the landlord should anticipate an order for possession and entitlement to costs.
- Adjourned the landlord's application on the condition that the tenant pay the landlord $1482.95 by cash or certified cheque no later than noon June 11, 2001.
- If payment is not made the landlord may continue the application by filing a praecipe returnable June 12, 2001.
- If the court grants the landlord's order on or after June 12, 2001 the landlord will be entitled to the costs of today's application.
Source and reliance status
Supreme Court of British Columbia · 7 June 2001
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
Supreme Court of British Columbia
Judgment· 7 June 2001
2001BCSC0832 Citation: Wong et al. v. Smart Date: 20010607 2001 BCSC 832 Docket: L011510 Registry: VANCOUVER
IN THE SUPREME COURT OF BRITISH COLUMBIA BETWEEN: CHUN MAN WONG & YIN LING WONG
LANDLORDS AND:
SUSAN SMART
TENANT
REASONS FOR JUDGMENT
OF THE HONOURABLE MR. JUSTICE E.R.A. EDWARDS Counsel for the Landlords Rowena Wong as agent Counsel for the Tenant Acting on Her Own Behalf Date and Place of Hearing: June 6, 2001 Vancouver, BC [1] This is a Show Cause Summons under s. 25 of the Commercial Tenancy Act. [2] On December 1, 2000, the parties signed a lease for premises on which the tenant operates a business engaged in retail sales of antiques and collectibles. The term of the lease is from November 1, 2000 to October 31, 2001. The rent is $950 per month payable on the first if each month in advance, plus GST. [3] There is an additional charge for use of a garbage bin of $24 per month plus GST. At some point the parties agreed to a further payment of $100 per month for storage space. Total monthly rent and tax is $1149.18. [4] Rent was waived for the first 9 days of the lease. The landlord holds a deposit of $950. [5] There is a dispute between the parties as to whether the business opened May 1, 2001 or just six days ago. In any event, the start up of the business was delayed by a number of tribulations visited on the tenant. These problems caused the tenant to fall into rent arrears from time to time. Rent payments have been sporadic and characterised by delays, excuses and NSF cheques from the tenant. [6] In order to accommodate the tenant during the attenuated start up of the business and to avoid NSF cheque
charges, the landlord agreed to accept rent in cash at the rate of $300 each Friday. [7] The landlord says that as of today the tenant is $667.54 in arrears. [8] The tenant disputes this. She said she is not sure what she has paid or what she owes. She said the last payment she made was $300 on May 18, 2001. She acknowledges a cheque tendered May 24 for $300 bounced. She said her offer to pay the full rent for June made on June 2, 2001 was refused by the landlord. She said she has the money to make that payment now. [9] The landlord also alleges the tenant was in breach of the lease by cluttering up areas adjacent to the premises with various items including a van, to the annoyance of other tenants. The tenant says this has been largely rectified and the van will be removed this weekend. [10] The tenant said she has spent many hours and $4500 on renovations and tenant improvements. [11] The landlord seeks an order that the tenant vacate the premises by 12:01 a.m. June 16, 2001, together with an order that the deposit may be used to offset rent then owing and such damages as the premises may have sustained. The landlord asks for costs of this application. [12] I am not sure how the landlord calculated the arrears at $667.54. I assume this represents the payments due May 24 and June 1, including either or both tax and the garbage and storage surcharges. [13] While I appreciate
the exasperation of the landlord with the tenant's sporadic payments, the tenant has a good deal of "sweat equity" and expense invested in preparing the premises and has been open for business only a short while. [14] The tenant expressed confidence cash flow from the business would permit her to pay the rent after July 1, 2001. The landlord believes the business is bound to fail. It is too soon to tell whether the business will thrive or fail. The order sought by the landlord would make it fail. [15] I adjourn the landlord's application on condition the tenant pay the landlord $1482.95 by cash or certified cheque no later than noon Monday June 11, 2001. That sum represents the May 26 payment and the entire amount due for June 2001. [16] If the payment is not made, the landlord may continue this application by filing a praecipe returnable in this court the following day, June 12, 2001. [17] While it will be in the discretion of the judge hearing the matter, should the payment not be made, the tenant should anticipate the order now sought by the landlord would be made on Tuesday June 12, 2001. [18] If the order sought by the landlord is made by the court on or after June 12, 2001, the landlord will be entitled to the costs of today's application. "E.R.A. Edwards, J." The Honourable Mr. Justice E.R.A. Edwards
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