Co-Tenancy Continuing Liabilities in Ontario


Would the liability of a co-tenant survive bankruptcy?


Let’s say we have a contaminated property owned by A and B as co-tenants.

There is a contamination spill and A and B as owners are liable.

A goes bankrupt.

B as a co-tenant is still responsible for 100% of the loss.

If C guaranteed A’s obligations, then C is off the hook due to A’s bankruptcy.

If C agreed to indemnify, then this is a greater obligation and A’s bankruptcy wouldn’t matter. C would still be responsible for 100% of the loss.

Brian Madigan LL.B., Broker

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