Destaron Property Management v. Hindmarsh

Tenant wins · 1260 Marlborough Court · 2017-07-20

Adjudicator

Monahan, J.

Dispute

Damage to Property

Landlord

Destaron Property Management Ltd., 1260 Marlborough Court Holdings Limited

Tenant

R.H.

Landlord rep

Miranda Serravalle

Tenant rep

Robert Dowhan, James Prosser

What happened

Landlords sued Tenant for $300,000 in damages caused by a fire that started in Tenant's apartment unit. Tenant claimed a letter from Landlord releasing him from liability in exchange for voluntarily terminating his tenancy barred the lawsuit. The court had to determine the legal effect of this agreement.

The ruling

The court granted summary judgment in favor of Tenant, dismissing Landlords' action for damages. The court found that the termination agreement letter constituted a full release of Tenant from liability for the fire damage, and rejected Landlords' argument that it was a limited release allowing subrogated claims up to insurance policy limits.