The CBC is a credible and reputable source of news for Canadians. These articles indicate that there is a problem that impacts Ontario consumers. These articles should be read by anyone who wants further information about HVAC rental companies and the corresponding HVAC rental agreements. Keep in mind that these articles are not legal advice but they do provide detailed information on specific cases of Ontario consumers who have been negatively impacted by signing HVAC rental agreements.

If you have any questions regarding your HVAC rental agreement feel free to contact Langer Law at (647) 926-4704 to schedule a consultation.

This blog is for educational and informational purposes only and does not constitute legal advice. Results of cases described on this website may not be typical and are not guaranteed. The accuracy of the blog posts is not guaranteed. Contacting Langer Law or using this website does not create a lawyer-client relationship.

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Click this link for the Canlii Decision for Balagula v. Ontario Consumers Home Services which is the Divisional Court decision dated September 13, 2018: https://www.canlii.org/en/on/onscdc/doc/2018/2018onsc5398/2018onsc5398.html?resultIndex=1

The facts in this matter are that an Ontario consumer signed two HVAC rental agreements on November 12, 2015 for a carbon filter and an air conditioner. The carbon filter was $49.99 plus HST per month while the air condition was $79.99 plus HST per month for a term of 10 years. The Ontario consumer sold his house in July 2016 but discovered that the HVAC rental company and/or a third party financing company placed two liens (Notice of Security Interests) on the home. The HVAC rental company forced the Ontario consumer to pay $17,334.09 to buy out the ongoing HVAC rental agreements and to discharge the liens.

The Ontario consumer initiated a Small Claims Court action to get back the $17,334.09 along with legal costs. To make a long story short, Deputy Judge Gannage of the Small Claims Court decided that the HVAC rental company had to pay back the $17,334.09 along with costs of $2,300. Deputy Judge Gannage’s most important findings were as follows:

• Although the Ontario consumer signed the contracts, he did not consent to onerous terms that were set out in small print on the back of the HVAC rental agreements

• The Deputy Judge found that the terms were unclear and confusing and did not make it clear that this was a “rent to own” HVAC agreement

• The Deputy Judge found that the buyout formula was “far from clear”

• The Deputy Judge found that the HVAC rental agreements were contracts of adhesion and that the HVAC rental company failed to bring the Ontario consumer’s attention to the onerous terms of the contract, which the HVAC rental company was obligated to do

The HVAC rental company appealed the Small Claims Court decision to the Divisional Court. Justice Conway of the Divisional Court upheld the Small Claims Court decision and ultimately found that the HVAC rental agreements contained onerous terms that an Ontario consumer would not reasonably expect. Specifically, the court found that clauses in the HVAC rental agreement related to registering a lien on title and the buyout clause were onerous. Due to the fact that the onerous clauses were not pointed out to the Ontario consumer before the HVAC rental agreement was signed, the onerous clauses could not be relied upon by the HVAC rental company. Accordingly, the HVAC rental company had to pay to the Ontario consumer $17, 334.09 along with Small Claims Court legal fees of $2,300 along with legal costs at Divisional Court of $3,500.

There is an ongoing legal battle between Ontario Consumers and HVAC rental companies. In this instance the Ontario consumer won and in the process created precedent setting case law that further assists other Ontario consumers going through the same legal problems.

If you have any further questions regarding the legal process please feel free to contact Langer Law at (647) 926-4704 to schedule a consultation.

This blog is for educational and informational purposes only and does not constitute legal advice. Results of cases described on this website may not be typical and are not guaranteed. The accuracy of the blog posts is not guaranteed. Contacting Langer Law or using this website does not create a lawyer-client relationship.

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