Executive Summary: Key Legal and Evidentiary Issues

• The Court of Quebec's Small Claims Division heard a dispute over a short-term rental property management contract.
   
• SB Entretien Plus did not appear or file a contestation, resulting in a default judgment based solely on the plaintiffs' evidence.
   
• Jasmine Marcoux and Jean-François Hogue alleged that their property manager withheld funds and mismanaged their Airbnb listings.
   
• Evidence supported findings that SB Entretien had improperly retained over $2,100 in fees and caused lost rental revenue.
   
• Claims for travel expenses were dismissed for lack of supporting evidence.
   
• Legal fees were denied because Small Claims Court proceedings do not permit recovery of costs tied to legal representation.
   

Facts of the case

Jasmine Marcoux and Jean-François Hogue hired SB Entretien Plus to manage the rental of their cottage in Sainte-Lucie-des-Laurentides, which they listed on platforms including Airbnb, under a property management contract dated June 1, 2023. A few weeks after signing, they terminated the agreement, dissatisfied with the services provided. They accused SB Entretien's representative, Steve Beauchamp, of fraudulently withholding funds owed to them and claimed the company's deficiencies caused lost rental income and additional out-of-pocket costs. In total, they sought $8,155.03, broken down into withheld maintenance fees, withheld management fees, losses from deficient listings, the value of time spent addressing service failures, travel expenses, and legal fees. SB Entretien did not file a contestation and no representative attended the hearing, so the Tribunal proceeded on a default basis using only the plaintiffs' evidence.

Policy and legislative provisions at issue

Several provisions of the Civil Code of Québec framed the Tribunal's analysis. Articles 2803 and 2804 set the plaintiffs' burden of proving their claims on a balance of probabilities. Article 1619 governs the additional indemnity applied to the awarded sum from the date proceedings were instituted. The underlying property management contract between the parties, along with supporting exhibits documenting the disputed charges, formed the evidentiary basis for the claims regarding withheld funds and lost income. On the question of legal fees, the Tribunal relied on prior Small Claims Division authority — Léveillé c. Peratsakis and Boulay c. Lavoie — establishing that such fees are indirect damages generally unrecoverable, consistent with the Division's design as a forum where parties are not represented by counsel.

Reasoning and analysis

With SB Entretien absent and no contrary evidence before it, the Tribunal assessed each head of claim against the documentary record and the plaintiffs' credible testimony. It found the evidence preponderant and uncontradicted that SB Entretien had failed to perform under the contract, both through deficient handling of bookings and inadequate maintenance of the property. On this basis, the Tribunal accepted that SB Entretien had improperly withheld a combined $2,118.13 in fees. It further accepted the $1,814.95 claimed for lost revenue tied to deficient listings, and the $4,012.50 claimed for the time and expense spent addressing SB Entretien's service failures. Two heads of claim did not succeed: the $96 in travel expenses failed for lack of supporting evidence, and the $113.45 in legal fees was barred as an indirect damage inconsistent with the self-representation principle underlying Small Claims proceedings.

Ruling and overall outcome

The Tribunal granted the claim in part, ruling in favour of Jasmine Marcoux and Jean-François Hogue. SB Entretien Plus was ordered to pay them $7,945.58 — reflecting the combined amounts accepted for withheld funds, lost revenue, and lost time — plus interest at the legal rate and the additional indemnity under article 1619 of the Civil Code of Québec running from the date the proceeding was instituted. The Tribunal separately ordered $213 in judicial costs. The claims for travel expenses and legal fees were dismissed.