Carola v. VIP Reality Inc. et al
MARIE-JEANNE CAROLA
Law Firm / Organization
WVGB Law Group
Lawyer(s)

Charles Genest

VIP REALITY INC (carrying on business as KELLER WILLIAMS INTEGRITY REALTY, AND DIANE GILETTE)
Law Firm / Organization
Templeman LLP

Overview:

  • Issue: Negligence claim against real estate agents for failing to vet tenants who caused extensive property damage.

Facts:

  • Plaintiff, Ms. Carola, leased her Cumberland property through the defendants.
  • The tenants recommended by the defendants caused significant damage and were involved in criminal activity.
  • Issues included:
    • Fraudulent identification used by tenants.
    • Criminal record and property destruction.
    • Unpaid rent and harassment.
    • Major damages discovered after tenants vacated in July 2021.

Legal Motion:

  • Defendants sought dismissal under three grounds:
    1. Exclusive Jurisdiction: Claimed the matter falls under the Landlord and Tenant Board (LTB).
    2. Limitation Period: Alleged the claim was filed too late.
    3. No Reasonable Cause of Action: Asserted the claim was baseless.

Court Findings:

  1. Jurisdiction:

    • The LTB’s jurisdiction is limited to tenant-landlord matters; it does not cover negligence by real estate agents.
    • The plaintiff’s claims of negligence fall outside the LTB’s scope.
  2. Statute of Limitations:

    • Damage extent was only discovered in July 2021. The action, filed in June 2023, was within the two-year limit under the Limitations Act.
  3. Reasonable Cause of Action:

    • Plaintiff’s claim sufficiently alleges negligence:
      • Duty of care owed by defendants.
      • Breach of that duty (failure to conduct proper tenant vetting).
      • Resulting damages.

Outcome:

  • Motion Dismissed: The plaintiff’s claim was allowed to proceed.
  • No monetary award granted at this stage.
Superior Court of Justice - Ontario
CV-23-92491
Real estate
Plaintiff