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ARTICLE · 26 JUNE 2026

Confusing 'Extenuating' With 'Exceptional': BCCA Quashes Arbitrator's Penalty For Delayed Landlord Occupancy

McCarthy Tétrault
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A British Columbia Court of Appeal decision examines whether a landlord who delayed moving into a rental unit for nearly 14 months after evicting a tenant can avoid paying up to 12 months' rent in compensation.

CanadaReal Estate and Construction
The Lay Of The Land
The Lay Of The Land
Damiana N. Pavone
Damiana N. Pavone
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A British Columbia landlord evicted a tenant on the basis that they intended to occupy the rental unit but did not move in until nearly 14 months after the tenant vacated. Under the Residential Tenancy Act, that delay can expose a landlord to liability for up to 12 months' rent.

In Kassam v. 1129728 B.C. Ltd., 2026 BCCA 33, the British Columbia Court of Appeal considered what legal standard governs whether a landlord can avoid that liability. The Court held that applying the wrong legal test is not a technical defect: confusing "extenuating circumstances" with "exceptional circumstances" constituted a reviewable legal error that undermines the resulting decision.

Kassam at a glance

  • Court: British Columbia Court of Appeal

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