Adler v Minas

Landlord wins · North York · 2025-11-06

Adjudicator

Mark Melchers

Dispute

Illegal Act, Other, Substantial Interference

Landlord

V.M., J.M.

Tenant

K.A., Eagle Capital Corporation

Landlord rep

David Strashin

Tenant rep

Jennifer Priestley, Kim Jordan

What happened

The Tenants applied for an order determining that the Landlords collected or retained money illegally. The Tenants claimed they paid rent for August 2021 but were locked out mid-month. They also sought the return of their last month's rent deposit. The case involved extensive litigation in the Superior Court and Divisional Court. During the dispute, a mortgagee (Ready Capital) took possession of the property and eventually settled with the Tenants for $268,000 to terminate the tenancy.

The ruling

The Tenants' application for the return of illegally retained money was dismissed. The Adjudicator ruled that the original Landlords were not the correct respondents because the property had been taken over by a mortgagee in possession before the tenancy ended. Under the law, the obligation to handle rent deposits and related financial covenants transferred to the mortgagee. Additionally, the Tenants had already received a substantial settlement from the mortgagee.