I don't know about BMW Canada, but BMW FS USA is super cool on lease returns. $1200 is a lot of damage for a lease return. I don't believe (unless you really jack up a car) will you ever get $1200 in lease damage fees.
I just returned my daily beater e90 328i about two months ago and it had a few scrapes, curb rash and a few small scratches. The dealer looked at it and said $0 - sign here. That's it. Now go take delivery of a new car.
