Ardabili v. Zak et al.
2025 ONSC 176 | Ontario Superior Court of Justice, Newmarket
A landlord's tenants stopped paying rent and defied every order the Landlord and Tenant Board issued. When arrears exceeded $35,000 — the LTB's monetary jurisdiction — we moved the case to Superior Court and obtained summary judgment for $50,441 plus $3,500 in costs, in a fraction of the time the LTB process would have taken.
The Commercial Problem
Our client owned a residential property at 25 Fanning Mills Circle in Vaughan, Ontario. The tenants — a husband and wife — moved in on November 23, 2021 at a monthly rent of $4,225. Starting in November 2022, the tenants began defaulting on their full rent obligations. By November 2023, they stopped paying entirely.
The landlord followed every step the system provides. An N4 Notice of Termination was served. The Landlord and Tenant Board confirmed the notice was valid. The LTB issued multiple interim orders requiring the tenants to pay. The tenants defied every single one.
Meanwhile, arrears kept growing — month after month of zero rent on a property that cost thousands to maintain. Utilities went unpaid. Property damage accumulated. The total claim was approaching $60,000.
The core anxiety was this: the LTB has a $35,000 monetary jurisdiction cap. Even if the Board eventually ruled in the landlord's favour, it could not award the full amount owed. And the LTB's enforcement tools are limited — there is no writ of execution, no examination in aid of execution, no garnishment order. The landlord was stuck in a system that could not make them whole, facing tenants who had learned that ignoring LTB orders carried no real consequences.
Key Strategic Decisions
Decision 1: Leaving the LTB for Superior Court
The conventional path would have been to continue the LTB process — wait for a hearing, get an order, hope the tenants comply this time. Many landlords stay in the LTB loop for years because they assume the Board has exclusive jurisdiction over residential tenancy disputes.
We assessed the situation differently. Section 207 of the Residential Tenancies Act permits a landlord to apply to the Superior Court of Justice where the amount claimed exceeds the LTB's monetary jurisdiction. The arrears here were well above $35,000. We withdrew the pending LTB applications to avoid duplicative parallel proceedings and brought the claim directly to Superior Court.
This was the critical move — and it carried risk. The defendants immediately argued that the Superior Court had no jurisdiction, claiming the LTB has exclusive authority over residential tenancy matters. We overcame this argument by demonstrating that the LTB applications had been withdrawn (no duplicative proceedings) and by citing our own firm's prior decision, Ji Zhou et al. v. Azadeh Hashem Nia et al., 2023 ONSC 5466, which established this exact procedural pathway. The court agreed.
Decision 2: Summary Judgment Instead of Trial
Once in Superior Court, we moved for summary judgment under Rule 20 of the Rules of Civil Procedure rather than proceeding to a full trial. The documentary record was clean: the lease agreement, the N1 rent increase notices, the N4 notice of termination, the LTB interim orders, utility bills, and damage records were all on paper.
The defendants were self-represented and had no documentary evidence to support their position. In a summary judgment motion, the responding party must put their best foot forward. The tenants could not point to a single document showing they had complied with any obligation. The motion judge had everything needed to resolve the dispute without a trial.
Decision 3: Accepting the Original Rent Rate
Our client had served N1 forms to increase rent from $4,225 to $5,225 and then to $6,225 per month. The increases were above the provincial guideline. We initially sought $62,025 in arrears calculated at the increased rates, but we also presented an alternative claim of $40,250 at the original $4,225 rate.
This was deliberate. The rent increases above guideline were legally vulnerable under sections 120 and 136 of the Residential Tenancies Act. If we insisted on the higher number, the defendants would have had a genuine issue to argue — potentially defeating summary judgment and sending the case to trial. By accepting the original rate, we removed the only real defence the tenants could raise. The court found the above-guideline increases were invalid but granted judgment at the original rate. The result: a clean summary judgment with no triable issues remaining.
Result
The court granted summary judgment in favour of our client. Justice C.F. de Sa awarded a total of $50,441: $40,250 in rent arrears (at the original rate of $4,225 per month), $5,691 in unpaid utilities, and $4,500 in property damages. The court also awarded $3,500 in costs against the defendants.
Comparison:
If this case had remained at the LTB, the Board's $35,000 monetary jurisdiction cap would have limited the recovery by over $15,000. Beyond the cap issue, LTB enforcement tools are significantly weaker than Superior Court remedies. A Superior Court judgment gives access to writs of execution, examination in aid of execution, and garnishment — real enforcement mechanisms that the LTB simply does not offer. The tenants who had ignored every LTB order now faced a Superior Court judgment with the full weight of the court's enforcement powers behind it.
Three Takeaways for Ontario Landlords
1. Know when to leave the LTB. The Landlord and Tenant Board is designed for routine disputes with manageable amounts. When arrears exceed $35,000, or when tenants have demonstrated they will defy LTB orders, staying at the Board is not persistence — it is a strategic error. Section 207 of the Residential Tenancies Act gives landlords the right to go to Superior Court. Use it.
2. Summary judgment is available in landlord-tenant cases. Many landlords and their lawyers assume that residential tenancy disputes must follow the LTB track exclusively. They do not. Once properly before the Superior Court, the full range of civil procedure tools is available — including summary judgment under Rule 20. Where the documentary record is clear, this can resolve a dispute in months rather than the years that the LTB process often takes.
3. Sometimes accepting a smaller number gets you paid faster. We could have fought for the higher rent rate and the additional $22,000 it would have yielded. But doing so would have created a genuine issue for trial, potentially adding another year or more to the process. By conceding the rent increase point, we obtained a clean summary judgment for $50,441 — a real, enforceable number — without the delay and expense of a trial.
Landlord With Rent Arrears Exceeding $35,000?
We recommend a legal posture assessment to evaluate whether your case should remain at the LTB or move to Superior Court. We will review your lease, the arrears history, any LTB orders, and the tenants' compliance record to determine the fastest path to a real, enforceable judgment.
This is not a sales meeting — it is a litigation-focused diagnostic to help you decide whether, when, and how to escalate from the LTB to Superior Court.
Legal Framework
- Residential Tenancies Act, 2006, s. 207 (Superior Court jurisdiction where amount exceeds LTB monetary limit)
- Residential Tenancies Act, 2006, s. 120 (guideline rent increase requirements)
- Residential Tenancies Act, 2006, s. 136 (validity of above-guideline rent increases)
- Ontario Rules of Civil Procedure, Rule 20 (Summary Judgment)
- Hryniak v. Mauldin, 2014 SCC 7 (summary judgment framework)
- Ji Zhou et al. v. Azadeh Hashem Nia et al., 2023 ONSC 5466 (Superior Court jurisdiction in residential tenancy disputes exceeding LTB cap)
- Ardabili v. Zak et al., 2025 ONSC 176
This page describes a case handled by Starkman & Zhang Lawyers. To protect client confidentiality, certain non-critical details have been generalized. The core facts, strategic decisions, and outcomes are accurate. This page does not constitute legal advice — every case depends on its specific facts. Contact us to discuss your situation.
Related Cases & Articles
Ji Zhou v. Hashem Nia, 2023 ONSC 5466
Our prior case establishing the procedural pathway from LTB to Superior Court for claims exceeding $35,000
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