tag:blogger.com,1999:blog-67033937544001823072024-03-17T03:41:44.367-04:00Ontario Landlord and Tenant LawLandlord and Tenant Law questions answered for tenants and landlords by Ottawa lawyer Michael Thiele.Michael K. E. Thielehttp://www.blogger.com/profile/10247495615982921581noreply@blogger.comBlogger141125tag:blogger.com,1999:blog-6703393754400182307.post-36471445199798198142024-03-11T10:10:00.001-04:002024-03-12T10:32:56.749-04:00When is the Rent late?<p><span style="font-size: large;"> Determining when rent is late in Ontario. It's not necessarily obvious.</span></p><p><span style="font-size: large;"><br /></span></p><p><span style="font-size: medium;">Much turns on the question of when rent is due and when it may, legally, be considered "late". If rent is late there are two possible legal claims that will begin to make life difficult for residential tenants. Those two legal claims are the N4 (Termination for Non-Payment of Rent) and the N8 (Termination for Persistent Late Payment of Rent).</span></p><p><span style="font-size: medium;"><br /></span></p><p><span style="font-size: medium;">The N4 Form is the formal Notice of Termination that is issued under the Residential Tenancies Act. It is a voidable Notice of Termination in that a tenant can "void it" if they pay the rent that is owing to the landlord by the termination date that is set out in the N4 Form. The termination date is a minimum of 14 days after service of the N4 and it is specifically highlighted in the Form. This 14 day period is often understood to be a grace period. So long as rent is paid within that 14 day window the tenancy continues and there is no immediate or perceived harm to the tenant.</span></p><p><span style="font-size: medium;">The key to the N4 Form is that it may only be served when rent is late. It can not be served in anticipation of rent not being paid nor can it be served at any time prior to the ultimate deadline of the rent being paid. Also, it is not properly served if the rent is paid, after it is due, but before the N4 is issued.</span></p><p><span style="font-size: medium;">If an N4 can not be served until rent is officially "late" then it is indeed important to understand when rent is actually late--according to law. To that end, most rent due dates may be determined by looking at the written lease. Most leases indicate that rent is due on the first of the month and most leases adopt a calendar month as the rental period. Even within a fixed term lease of say, 1 year, the year is made up of 12 monthly rental periods. The lease indicates the date on which the rent is due and that is typically the first of the month. However, nothing stops a landlord or tenant from indicating in the lease a different rent due date. A rental period may run, for example, from the 15th to the 14th of the following month. It is inconvenient, often confusing, but totally legal. </span></p><p><span style="font-size: medium;">Some leases fail to indicate the day that rent is due. Some tenancies don't have formal written lease and instead are oral or implied from the circumstances giving rise to the occupation of the rental unit. That is perfectly legal too. Residential leases in Ontario are equally valid whether written, oral, or implied. These leases can raise an interesting question as to when the rent is actually due. Section 13 of the Residential Tenancies Act states that a tenancy commences on the day that the tenant is entitled to occupy the rental unit. Absent a written lease setting out the rent due date, the operation of section 13 may actually create a different rental period---for example from the 27th to the 26th of the following month and therefore create a different rent due date.</span></p><p>If a lease does not follow a calendar month then it is important to figure out if rent is actually late or not in fact yet due. This timing issue may lurk in the background of a tenancy even if the landlord and tenant subsequently adopt a payment schedule of the calendar month. While everything in the tenancy is going fine and a tenant is having no trouble it likely doesn't matter, precisely when rent is due, as the rent is paid. However, if finances are challenging and a tenant is having trouble meeting all financial obligations it may be that the timing of payments (coordinating with times of getting paid) is very important. A few days sooner or later may indeed be the difference between being on time or receiving an N4 to terminate a tenancy for non-payment of rent.</p><p>Another way that the rent due date may be affected is by a standing agreement or terms agreed to at the beginning of a tenancy. I recall a case where I was representing a tenant who was arguable "always late" or "always on time". Now, that did not seem to be possible but here is what happened. The tenant was a single mother who aggregated her income over the course of the month from different sources. She did not get paid reliably on the same days every month and in that sense her income fluctuated. At the commencement of her tenancy she told the superintendent who rented her the apartment about her income and that she needed flexibility. The superintendent, a kind and empathetic person told her it wasn't a problem and that as long as she paid the rent within the month that it was due that it was no problem. The superintendent kept the books and the arrangement worked well. That is, until the Superintendent moved on and was no longer employed by the landlord.</p><p>The new superintendent was less kind and insisted that the tenant pay the rent, on the first of the month, as her lease stipulated. On its face, it looked like the rent was late every month. This case ended up in front of the Landlord and Tenant Board and the issue in the case was "when" is the rent due. This determination mattered because the Application to the LTB raised the possibility of eviction and the possibility of having to pay the costs of the application. If the rent was paid "on time" by being paid within the month then the tenant's tenancy was perfectly safe as there would never be a basis to serve an N4 or an N8 if the rent due date was flexible. If the rent was due on the first well then an N4 would likely be issued every month and eventually the rent would be persistently late and an N8 would be warranted. Winning the argument on when "rent is due" (or "when is rent late") is therefore critically important.</p><p>There are some odd situations respecting rent due times as well. Some landlords pick up the rent from the apartments and go door to door. If rent is due on the first does a tenant have to be sure to be home to meet the landlord failing which rent is late if the tenant steps out? (No). Can a landlord stipulate that the rent is due by the close of business (i.e. the landlord's business office) on the 1st day of the month after which it is late? (no). Can the landlord require payment in cash or in some way other than how it was agreed to be paid in the lease failing which it is late or refused? (No). Can a landlord require that rent be paid early (before it is due) in case of an upcoming holiday and provide no way to pay the rent on the due date? (No). There is no legal dispute with the fact that rent may be paid by a tenant up until midnight of the day that it is due (regardless of what the landlord may like). If the landlord offers a drop box then the tenant may pay by drop box up until midnight. Rent is not late if the landlord doesn't get around to cashing a cheque, money order, or accepting an e-transfer until after the due date. A landlord can not manufacture a late rent payment to allow the service of an N4 or an N8. Lateness is not determined by when a landlord cashes a cheque/etransfer/money order.</p><p>In the case I mentioned above, the legal argument respecting payment within the month of the tenancy is to cite to the principle of <i>condonation</i>. The principle, as applied in that case, was that the landlord's "condoning" of payment within the month, without objection, created an agreement changing the due date of the first of the month (if in fact that was ever the agreed upon due date). The LTB found that the tenant's rent <i>due date</i> was within the month that the rent was due. I insisted that this flexible rent due date be recognized in the LTB Order as the important to the tenant's security of tenure by having a flexible rent due date was critical.</p><p>If a tenant can avoid getting an N4 altogether (based on rent due dates---or rent late dates) then the tenant will also avoid getting an N8 for persistent late payment of rent. All of this is good for preserving the tenancy. I mention this because I see enough cases where tenants walk away from the flexibility that they had in place in exchange for dismissal of an eviction application and a certainty that their tenancy will continue in the immediate future. This can be a mistake as the flexibility as to rent due dates is what allows the tenant to continue to juggle the financial balls and continue the tenancy. Agreeing to a fixed due date can seal the eventual fate of eviction due to late payment or persistent late payment.</p><p>I do think that more thought needs to be given to setting the fixed payment date and to explore what the agreement reflects and what the actions of the parties revealed over time. The simple words of the lease may not be accurate as to the payment due date in law--and hence the date of when the rent is late remains uncertain. If a tenant has paid late, but has always paid, over the years and a landlord has not served an N4 each time that rent was technically late then one might argue that the late payment was condoned by the landlord and hence rent was not late nor persistently late. Where tenants, by virtue of their income, need flexibility, is it incumbent on representatives and tenants themselves to negotiate for that flexibility and to retain any existing flexibility when appearing at the LTB on N4 and N8 applications to terminate the tenancy.</p><p><br /></p><p>Michael K. E. Thiele</p><p>www.ottawalawyers.com </p><p><span style="font-size: large;"><br /></span></p><p><br /></p>Michael K. E. Thielehttp://www.blogger.com/profile/10247495615982921581noreply@blogger.com0Ontario, Canada51.253775 -85.323213922.943541163821152 -120.4794639 79.564008836178843 -50.1669639tag:blogger.com,1999:blog-6703393754400182307.post-90431601980270566502023-10-16T07:14:00.005-04:002023-10-26T08:37:27.319-04:00Landlord owed more than $35,000 in rent arrears<p> To which Court or Tribunal should the case go? Landlord and Tenant Board or Superior Court of Justice?</p><p>Increasing monthly rent amounts and the inefficiencies at the Ontario Landlord and Tenant Board have given rise to some unusual jurisdictional problems. The Ontario Landlord and Tenant Board has a monetary jurisdiction of $35,000 as per section 207 of the Residential Tenancies Act. On its face, this means that the Ontario Landlord and Tenant Board has the authority/power to order a person(s) to pay to another the amount of $35,000.00. Hence, in a rent arrears case, if the tenant owes the landlord any amount up to $35,000 the Landlord and Tenant Board can Order the tenant to pay that amount and terminate the tenancy of that tenant if the amount is not paid. There are other provisions in the <i>Residential Tenancies Act</i> dealing with "paying and staying" and there are requirements under the Act to allow the tenant to void an eviction Order, once made, by paying the arrears. Within the context of proceedings to terminate a tenancy for non-payment of rent (at the Landlord and Tenant Board) there is the procedural fact that the Landlord and Tenant Board imposes no meaningful costs of any kind on the unsuccessful party in its hearings. Meaning both sides absorb the expense of their own legal fees regardless of winning or losing (I mention this here--unusually--because the option to proceed in Court makes recovery of legal fees a possibility in that venue--versus being not recoverable in the LTB venue). To be clear, this article is not exploring anything really useful for cases involving sums under the $35,000 LTB jurisdiction. The Rules are clear and the jurisdiction of the Landlord and Tenant Board is exclusive when the amounts at stake are under $35,000.00.</p><p>What then happens if the tenant(s) owes the landlord more than $35,000.00? The procedural pathway has not been obvious or clearly prescribed. There is no useful guidance memo on the LTB site and exactly what to do about claims in excess of jurisdiction has been the subject of some debate and different expressed views by sitting adjudicators. For many landlords, the nuanced legal views on jurisdiction are too lofty and impractical to parse and so they simply waive the amount of arrears that exceeds $35,000 and proceed to get an eviction Order based on the maximum LTB jurisdiction. This is effectively a waiver of rent arrears in excess of this amount---or at least it looks like a waiver--meaning the understanding is that the waiver operates as a release for any arrears above that amount (essentially a gift to the tenant).</p><p>Waiver is not always how it is done. There are a few interesting cases where Landlords have proceeded with claims at the LTB, far in excess of the $35K jurisdiction, and the outcome is not a waiver or forgiveness of the excess amounts. The Orders in these cases require the tenants to pay the $35,000 in rent arrears--so this aspect of the Order is limited to the jurisdiction maximum. HOWEVER, if the tenant wishes to remain in possession and continue the tenancy, the Order requires the tenant to pay the actual amount owed (yes, the total amount even above $35,000) to void the eviction Order. Hence, there is a chance, if proceeding at the LTB for eviction for non-payment of rent for an amount in excess of $35K that the tenant will have to pay the full amount if the tenant wishes to continue the tenancy.</p><p>If the tenant does not wish to continue the tenancy and is happy enough to allow the eviction to be enforced then the LTB Order does cap out at $35K and the landlord, at least as far as this Order is concerned has waived the arrears in excess of the $35K because the Order does not make the amount in excess of $35K collectable. Does this mean it is an actual waiver or release of the excess? I do not think that it is. If the landlord does not expressly waiver the amount above $35K then the amount of that debt is not implicitly forgiven. There is no electing into the LTB jurisdiction and no overt "limiting" of the claim to $35K. It means, I think, that the amount in excess of $35K is still a debt owed to the Landlord but just not recoverable at the LTB. I think it should be arguable that the landlord can indeed file a separate claim for the excess amount in Court for the excess amount. I think it would be difficult to argue res judicata (a technical bar to litigating a claim that has "already been decided) to the excess amount as the LTB did not have jurisdiction to decide anything in relation to that amount above $35K. Query then, do you sue in Small Claims for the excess amount if the excess amount (balance above $35K is less than the jurisdiction of the Small Claims Court which also happens to be $35K?). Some might ask, if this is possible why sue in Small Claims if you could just file a separate L10 at the LTB for the difference. And then, as you think about that Pandora's box opens and you start to think about splitting the claim and all the legal principles that have developed over the years to prevent multiple proceedings based on the same basic facts. </p><p>The logic of the cases (at the LTB) maintaining the entirety of the arrears (including the amount over $35K) is that the LTB can not Order a tenant to pay more than $35,000.00 but <u><b>it can</b></u> refuse to issue an order voiding the eviction portion of the Order unless the total amount of rent arrears is paid. Hence, a landlord proceeding at the LTB for amounts in excess of $35,000 will only get a Judgement for $35,000 against the tenant but will also get an eviction and vacant possession. The only way a tenant gets to retain possession of the rental unit is to pay the entire amount even though it exceeds the monetary jurisdiction of the LTB.</p><p><i>SUING IN THE SUPERIOR COURT for the full amount AND eviction</i></p><p>I was interested to see that there is a fresh case from the Superior Court called <a href="https://www.canlii.org/en/on/onsc/doc/2023/2023onsc5466/2023onsc5466.html?autocompleteStr=Ji%20Zhou&autocompletePos=1" target="_blank">Ji Zhou v. Azadeh Hasem Nia et. al</a> decided September 28, 2023. The case is not all that remarkable except that it describes a common circumstance of many landlords these days. Due to LTB delays many rent arrears cases are sitting so very long waiting to be heard that the amount of the arrears exceeds the jurisdiction of the LTB by the time the cases are heard. Some landlords are not interested in waiving the excess above $35,000 and some landlords believe that their tenants are sufficiently credit worthy that it is worthwhile to get a Judgement for the full arrears in addition to an eviction Order.</p><p>In this case (cited above), the landlord had proceeded at the LTB. Was successful in getting an Order and then the tenant initiated a review process that severely delayed the eviction and hearing. With LTB institutional delays the landlord decided to withdraw the case from the LTB. The LTB permitted the withdrawal of the application. The landlord then sued in the Superior Court for the full amount owed and for an Order terminating and evicting the tenants.</p><p>The procedure in this case is very interesting for how it moved through the <i>Residential Tenancies Act</i> requirements and for how the Court seemed to deal more harshly (many would say properly) with significant rent arrears. The Landlord, after issuing and serving the claim, decided to seek Summary Judgment under Rule 20 of the Rules of Civil Procedure. This is a summary process--intended to be quick and efficient. For those who are aware, the availability of Summary Judgment seems to be a perpetual question notwithstanding appellate directives. Hence, it is very interesting to see here that the Court had no difficulty in proceeding with the matter as a Summary Judgment proceeding. That is good to know and a good precedent to have if choosing to proceed in the Superior Court.</p><p>Notable as well is that the Court awarded "real" costs against the tenants when the case went against them. I imagine that if the LTB would start visiting consequences on unsuccessful parties as the Court does here that the backlog would be significantly shorter.</p><p>The decision also raises interesting questions about the issuance of the Writ of Possession and the non-voidable (apparently) nature of the Order. In total, it seems here that the Superior Court of Justice is able to deliver the expedited procedure and speed that the Landlord and Tenant Board is no longer capable of doing. Looking at this decision one can imagine that the Court is soon to become the preferred venue for pursuing LTB cases for rent arrears.</p><p>Michael Thiele</p><p>www.ottawalawyers.com </p>Michael K. E. Thielehttp://www.blogger.com/profile/10247495615982921581noreply@blogger.com0tag:blogger.com,1999:blog-6703393754400182307.post-60403600991910160872023-06-17T09:58:00.004-04:002023-06-17T10:08:47.701-04:00Chargebacks against Condominium Unit Owners<p><b><span style="font-size: large;">Condo Unit Owner's tenants cause trouble, Condo charging back expenses to owner--any limits?</span></b></p><p><span style="font-size: medium;">This article is outside of my usual area of comment in that the legal issues engage the Ontario <a href="https://www.canlii.org/en/on/laws/stat/so-1998-c-19/latest/so-1998-c-19.html?autocompleteStr=condo&autocompletePos=1" target="_blank">Condominium Act, 1998, SO 1998, c 19</a> and unfortunately does not engage my comfort zone area being the Ontario <a href="https://www.canlii.org/en/on/laws/stat/so-2006-c-17/latest/so-2006-c-17.html?autocompleteStr=resid&autocompletePos=1" target="_blank">Residential Tenancies Act</a> and the relationship between residential landlords and tenants. I suppose, in a sense, that it is worthwhile noting that the <i>Residential Tenancies Ac</i>t is effectively and utterly useless to a condo unit owner when disputing with the Condominium Corporation the chargebacks and threats to lien the unit. Even though the damage and issues were caused by or contributed to by the actions of the condo unit owner's residential tenants the Residential Tenancies Act offers no help to the residential landlord who is caught between the Condo Corp's demands for compliance and the procedural processes of the Ontario Landlord and Tenant Board.</span></p><p><b><i><span style="font-size: large;">The legal research question and a fact outline</span></i></b></p><p><span style="font-size: medium;">A condominium unit owner decides to rent out the unit to tenants. Renting the unit is permitted by the Condo Bylaws and there are no restrictions as to occupancy. The unit owner advertises the apartment/unit for rent and receives rental applications. A standard form Ontario Lease (as required by section 12.1 RTA) indicating that the rental unit is a condo, with all the usual terms, is reviewed and signed by the landlord and the tenant. The tenant assumes occupancy as a tenant with the protections of the <i>Residential Tenancies Act</i>. Then, all hell breaks loose.</span></p><p><span style="font-size: medium;">What is this hell? The tenant smokes in the hallways, tosses cigarette butts from balconies, lets their dog do it's business on the balcony (above balconies of neighbours below), drags dripping garbage bags through hallways, damages the common area entrance areas and does such a poor job at housekeeping that various pests (cockroaches, bed bugs) so severely infest the rental unit that other neighbour units are being infested and no amount of pest control treatment in the surrounding units can knock back the burgeoning pest populations. The landlord is informed of all of the problems by the property management company and urged to take immediate action. The landlord/owner is shocked but immediately contacts the tenants to tell them of the problems and that this all has to stop immediately. Instead of contrition, the landlord is told that the allegations are all false, pure lies, because the people who are complaining are hateful liars. With contrasting stories, the landlord/owner tries to go back to the property manager to get information, evidence, proof, and seek help in dealing with the problem. Unfortunately, the property manager while trying to help increases pressure by saying that legal action will be taken to enforce compliance and that all the costs will be charged back to the owner. A few days after speaking with the property manager the unit owner gets a lawyer's letter from the condo's lawyer demanding immediate compliance with the bylaws with a lengthy explanation of how everything the unit owner's tenants are doing breaches the condominium act, the declaration, and bylaws of the Condominium Corporation.</span></p><p><span style="font-size: medium;">The unit owner, stressed out, seeks legal help and discovers that the governing legal structure with the tenant is the <i>Residential Tenancies Act.</i> The landlord/owner instructs counsel (or a paralegal) to prepare and deliver Notices of Termination and to file the appropriate paperwork to get an order terminating and evicting the tenant at the first possible opportunity. Counsel tells the landlord/owner that the problem is going to be that the Ontario Landlord and Tenant Board is a broken system and that the earliest the landlord can expect a hearing is sometime many months from now, but hopefully within the next year. And then, a hearing may be adjourned for procedural issues and extended wait times will be endured until rescheduling. Eventually a merits hearing will happen but receiving a decision can take months and then the Landlord and Tenant Board will likely "stay" any Order that is received for a "Review Hearing" (taking many months more) at the tenants' request. Presuming eventual success the tenant will then possibly file an Appeal to the Divisional Court causing a further automatic stay of several months while an expensive motion is brought by the landlord to deal with the appeal. The legal costs to the owner/landlord---ranges in the thousands of dollars with zero chance of recovering those costs because the Ontario Landlord and Tenant Board doesn't hold parties accountable for legal costs (regardless of their conduct) [note: costs are available at the Divisional Court for appeal proceedings].</span></p><p><span style="font-size: medium;">Stricken by this advice, the unit owner informs the property manager of steps being taken. The reality it seems is that the tenants will continue their behaviour without consequence for at least a year or more before the landlord/owner can get any kind of legal Order that evicts the tenant. Neighbouring unit owners, when informed, exert extreme pressure on the Board of Directors to force compliance and action as living with the current circumstances is utterly unacceptable. The Board of Directors instructs the condo's lawyer to commence proceedings, the property manager hires third party security, increased pest control, installs video cameras, and does whatever it can to lockdown the actions of the tenants with restrictions and controls. These steps cost several thousands of dollars--even 10's of thousands of dollars. The landlord/unit owner, sympathetic with the other owners and even agreeing that the tenants' behaviour is unacceptable, is astonished to receive huge bills demanding payment and threatening additional chargebacks and liens on the unit due to tenant behaviour.</span></p><p><span style="font-size: medium;">The unit owner/landlord reviews the charges and sees all kinds of charges. Condo legal fees, property management fees, third party security fees, additional cleaning fees, pest control fees, the list goes on and on. Some charges seem fair, others seem high, unnecessary, or unreasonable.</span></p><p><b><i><span style="font-size: large;"><br /></span></i></b></p><p><b><i><span style="font-size: large;">What is the extent of the unit owner's liability for these chargebacks? Is there any way to dispute or fight the charges? What is the law? </span></i></b></p><p><b><i><br /></i></b></p><p class="paragraphstyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 0cm;"><span style="font-size: medium;">Unfortunately, I was unable to find any direct authority setting out a specific procedure for disputing excessive and unreasonable chargebacks levied against a unit under the <i>Condominium Act, 1998</i>. However, insight may be gleaned from the relevant statutory provisions and the following decisions, in which those provisions are applied by decision-makers. <o:p></o:p></span></p><p class="paragraphstyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 0cm;"><span style="font-size: medium;">The following expenses can be charged back to the contribution to the common expenses payable for an owner's unit: <o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">- a levy assessed by the corporation to account for increases to the common expenses caused by a person's contravention of the occupancy standards of a unit (ss. 57(4) and (5));<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">- the cost of repairs and maintenance done by a corporation to a unit on behalf of a unit owner (s. 92(4));<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">- the cost of charges, interest and expenses resulting from the owner's failure to comply with an agreement in respect of changes to the common property (s. 98(4));<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">- the lesser of the costs of repairing damage done to the owner's unit by a tenant and the deductible limit of the insurance policy obtained by the corporation (s. 105(2)); and <o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">- an award of damages or costs in an order made against an owner or occupier of a unit to enforce compliance with the Act, the declaration, the by-laws, the rules or a specified agreement (s. 134(5)). <o:p></o:p></span></p><p class="paragraphstyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 0cm;"><span style="font-size: medium;">If an owner defaults in the obligation to contribute to the common expenses payable for the owner’s unit, the corporation has a lien against the owner’s unit and its appurtenant common interest for the unpaid amount together with all interest owing and all reasonable legal costs and reasonable expenses incurred by the corporation in connection with the collection or attempted collection of the unpaid amount (s. 85(1)). (<a href="https://www.canlii.org/en/on/laws/stat/so-1998-c-19/latest/so-1998-c-19.html"><i><span style="color: #1155cc;">Condominium Act, 1998</span></i></a><a href="https://www.canlii.org/en/on/laws/stat/so-1998-c-19/latest/so-1998-c-19.html"><span style="color: #1155cc;">, SO 1998, c 19</span></a>)<o:p></o:p></span></p><p class="paragraphstyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 0cm;"><span style="font-size: medium;">Common expenses, in their most traditional form, apply to the monthly fees each unit owner pays for utilities and the general upkeep of the condominium project. If a unit owner defaults on those monthly obligations, the default can be liened and the unit can be sold to enforce the lien. It is one thing to allow the corporation to enforce, by way of lien, common expenses that are applicable to all unit holders and that a majority of unitholders have approved. It is entirely another to allow a condominium corporation the unfettered, unilateral right to impose whatever costs it wants on a unitholder, refer to them as common expenses and thereby acquire the right to sell the unitholder’s apartment. (<a href="https://www.canlii.org/en/on/onsc/doc/2020/2020onsc194/2020onsc194.html"><i><span style="color: #1155cc;">Amlani v. York Condominium Corporation No. 473</span></i></a><a href="https://www.canlii.org/en/on/onsc/doc/2020/2020onsc194/2020onsc194.html"><span style="color: #1155cc;">, 2020 ONSC 194 (CanLII)</span></a>)<o:p></o:p></span></p><p class="paragraphstyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 0cm;"><span style="font-size: medium;">In <a href="https://www.canlii.org/en/on/onsc/doc/2020/2020onsc194/2020onsc194.html"><i><span style="color: #1155cc;">Amlani v. York Condominium Corporation No. 473</span></i></a><a href="https://www.canlii.org/en/on/onsc/doc/2020/2020onsc194/2020onsc194.html"><span style="color: #1155cc;">, 2020 ONSC 194 (CanLII)</span></a>, the owner purchased the unit with the knowledge that there were no prohibitions against smoking in the unit. When the neighbours complained about smoke migrating into their units, the corporation attempted to seal any leaks and, when that didn't work, asked the owner to stop smoking in the unit. The corporation incurred legal fees to attempt to enforce the requirement that the owner stop smoking and registered a lien against the unit pursuant to s. 85(1) of the <i>Condominium Act, 1998.</i><o:p></o:p></span></p><p class="paragraphstyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 0cm;"><span style="font-size: medium;">Koehnen J. held that the legal expenses were not lienable pursuant to s. 85(1) of the <i>Condominium Act, 1998</i> without a court order, despite a declaration that the corporation interpreted as allowing such legal expenses to be lienable in the absence of a court order. The Court held that the corporation's interpretation contravened s. 134 of the Act and an interpretation that contravenes a statutory provision is, by definition, unreasonable.<o:p></o:p></span></p><p class="paragraphstyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 0cm;"><span style="font-size: medium;">In <a href="https://www.canlii.org/en/on/oncat/doc/2021/2021oncat13/2021oncat13.html"><i><span style="color: #1155cc;">Rahman v. Peel Standard Condominium Corporation No. 779</span></i></a><a href="https://www.canlii.org/en/on/oncat/doc/2021/2021oncat13/2021oncat13.html"><span style="color: #1155cc;">, 2021 ONCAT 13 (CanLII)</span></a>, the unit owner had a disability and possessed an accessible parking permit. He used the accessible parking spaces at the condominium despite the objections of the corporation that his use violated the corporation's declaration. The corporation took the position that the accessible parking spaces were for visitors only. The Tribunal interpreted the declaration and found that the owner was entitled to park in the accessible spaces. The Tribunal held that the corporation had unreasonably imposed costs of enforcing its declaration against the unit owner and added those costs to the owner's common expenses and filed a lien against the unit. The corporation was therefore not entitled to add the reasonable expenses related to the enforcement to the common expenses payable for the unit pursuant to s. 134(5) of the <i>Condominium Act, 1998.</i><o:p></o:p></span></p><p class="paragraphstyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 0cm;"><span style="font-size: medium;">Because the corporation had not quantified the costs it claimed related to its enforcement of the declaration against the owner, the Tribunal was unable to determine what part of the lien related to the unreasonably imposed costs. The Tribunal ordered the corporation to stop its enforcement proceedings, including the registration of the lien against the unit, and to provide the owner with an accounting of the costs related to enforcement.<o:p></o:p></span></p><p class="paragraphstyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 0cm;"><span style="font-size: medium;">In <a href="https://www.canlii.org/en/on/onca/doc/2006/2006canlii20838/2006canlii20838.html"><i><span style="color: #1155cc;">Metro Toronto Condominium Corporation No. 545 v. Stein</span></i></a><a href="https://www.canlii.org/en/on/onca/doc/2006/2006canlii20838/2006canlii20838.html"><span style="color: #1155cc;">, 2006 CanLII 20838 (ON CA)</span></a>, the corporation determined that all unit owners were required to carry out Level 5 remediation in response to a mold problem. The respondents carried out Level 1 remediation in their unit, which was more affordable and was suggested to them by a mycologist. The corporation's application to enter the unit to carry out the Level 5 remediation was denied. The corporation appealed from that order, arguing that the application judge erred by failing to defer to the corporation's decision to require Level 5 remediation. <o:p></o:p></span></p><p class="paragraphstyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 0cm;"><span style="font-size: medium;">Rouleau J.A., for the Court of Appeal, upheld the application judge's decision, which was based on the finding that the corporation had not acted reasonably in imposing its standard of remediation and that reasonable lower cost alternatives ought to have been considered, especially in light of there being no evidence of harm to other units. The Court held that the Court of Appeal's decision in <i>Dvorchik</i> did not apply in this case because the corporation had made the strategic decision not to make the requirement for Level 5 remediation a rule.</span><o:p></o:p></p><p class="headingstyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 22.5pt 0cm 11pt; text-decoration: underline;"><b><i>Applicable Law</i></b><o:p></o:p></p><p class="paragraphstyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 0cm;"><span style="font-size: medium;">Section 57(4) and (5) of the <a href="https://www.canlii.org/en/on/laws/stat/so-1998-c-19/latest/so-1998-c-19.html"><i><span style="color: #1155cc;">Condominium Act, 1998</span></i></a><a href="https://www.canlii.org/en/on/laws/stat/so-1998-c-19/latest/so-1998-c-19.html"><span style="color: #1155cc;">, SO 1998, c 19</span></a> enable a corporation that has passed an occupancy standards by-law to levy an assessment against a unit in which the by-law has been contravened and provide that such a levy shall form part of the contribution to the common expenses payable for the unit: <o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">Assessments<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">(4) If the corporation has passed a by-law under subsection (1) and a person contravenes the standards for the occupancy of a unit set out in the by-law, the board may, by resolution, levy against the unit,<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">(a) an assessment for the amount that reasonably reflects the amount by which the contravention increases the cost of maintaining the common elements and repairing them after damage; and<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">(b) an assessment for the amount that reasonably reflects the amount by which the contravention increases the cost of using the utilities that form part of the common expenses. 1998, c. 19, s. 57 (4); 2015, c. 28, Sched. 1, s. 53 (2).<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">Part of common expenses<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">(5) The assessments mentioned in subsection (4) shall form part of the contribution to the common expenses payable for the unit. 1998, c. 19, s. 57 (5).<o:p></o:p></span></p><p class="paragraphstyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 0cm;"><span style="font-size: medium;">Section 92(4) of the <a href="https://www.canlii.org/en/on/laws/stat/so-1998-c-19/latest/so-1998-c-19.html"><i><span style="color: #1155cc;">Condominium Act, 1998</span></i></a><a href="https://www.canlii.org/en/on/laws/stat/so-1998-c-19/latest/so-1998-c-19.html"><span style="color: #1155cc;">, SO 1998, c 19</span></a> provides that the cost of any repairs or maintenance done by the corporation to the unit on behalf of the owner shall be added to the contribution to the common expenses payable for the owner's unit: <o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">Cost<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">(4) An owner shall be deemed to have consented to the work done by a corporation under this section and the cost of the work shall be added to the contribution to the common expenses payable for the owner’s unit. 1998, c. 19, s. 92 (4); 2015, c. 28, Sched. 1, s. 83 (2).<o:p></o:p></span></p><p class="paragraphstyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 0cm;"><span style="font-size: medium;">Section 98(4) of the <a href="https://www.canlii.org/en/on/laws/stat/so-1998-c-19/latest/so-1998-c-19.html"><i><span style="color: #1155cc;">Condominium Act, 1998</span></i></a><a href="https://www.canlii.org/en/on/laws/stat/so-1998-c-19/latest/so-1998-c-19.html"><span style="color: #1155cc;">, SO 1998, c 19</span></a> provides that the corporation may add the costs charges, interest and expenses resulting from the owner's failure to comply with an agreement in respect of changes to common property to the common expenses payable to the owner's unit: <o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">Lien for default under agreement<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">(4) The corporation may add the costs, charges, interest and expenses resulting from an owner’s failure to comply with an agreement to the common expenses payable for the owner’s unit and may specify a time for payment by the owner. 1998, c. 19, s. 98 (4).<o:p></o:p></span></p><p class="paragraphstyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 0cm;"><span style="font-size: medium;">Section 105(2) of the <a href="https://www.canlii.org/en/on/laws/stat/so-1998-c-19/latest/so-1998-c-19.html"><i><span style="color: #1155cc;">Condominium Act, 1998</span></i></a><a href="https://www.canlii.org/en/on/laws/stat/so-1998-c-19/latest/so-1998-c-19.html"><span style="color: #1155cc;">, SO 1998, c 19</span></a> provides that the corporation can add the lesser of the costs of repairing damage done to the unit by a tenant and the amount of the insurance policy deductible to the common property expenses payable for the owner's unit: <o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">Owner’s responsibility<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">(2) If an owner, a lessee of an owner or a person residing in the owner’s unit with the permission or knowledge of the owner through an act or omission causes damage to the owner’s unit, the amount that is the lesser of the cost of repairing the damage and the deductible limit of the insurance policy obtained by the corporation shall be added to the common expenses payable for the owner’s unit. 1998, c. 19, s. 105 (2).<o:p></o:p></span></p><p class="paragraphstyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 0cm;"><span style="font-size: medium;">Section 134(5) of the <a href="https://www.canlii.org/en/on/laws/stat/so-1998-c-19/latest/so-1998-c-19.html"><i><span style="color: #1155cc;">Condominium Act, 1998</span></i></a><a href="https://www.canlii.org/en/on/laws/stat/so-1998-c-19/latest/so-1998-c-19.html"><span style="color: #1155cc;">, SO 1998, c 19</span></a> provides that where a corporation obtains an award of damages or costs in an order made against an owner or occupier of a unit to enforce compliance with the Act, the declaration, the by-laws, the rules or a specified agreement, those damages or costs can be added to the common expenses for the unit: <o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">Addition to common expenses<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">(5) If a corporation obtains an award of damages or costs in an order made against an owner or occupier of a unit, the damages or costs, together with any additional actual costs to the corporation in obtaining the order, shall be added to the common expenses for the unit and the corporation may specify a time for payment by the owner of the unit. 1998, c. 19, s. 134 (5).<o:p></o:p></span></p><p class="paragraphstyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 0cm;"><span style="font-size: medium;">Section 85 of the <a href="https://www.canlii.org/en/on/laws/stat/so-1998-c-19/latest/so-1998-c-19.html"><i><span style="color: #1155cc;">Condominium Act, 1998</span></i></a><a href="https://www.canlii.org/en/on/laws/stat/so-1998-c-19/latest/so-1998-c-19.html"><span style="color: #1155cc;">, SO 1998, c 19</span></a> provides that a corporation has a lien against the owner's unit for failure to contribute to the common expenses payable for the owner's unit: <o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">Lien upon default<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;"><b>85 </b>(1) If an owner defaults in the obligation to contribute to the common expenses payable for the owner’s unit, the corporation has a lien against the owner’s unit and its appurtenant common interest for the unpaid amount together with all interest owing and all reasonable legal costs and reasonable expenses incurred by the corporation in connection with the collection or attempted collection of the unpaid amount. 1998, c. 19, s. 85 (1); 2015, c. 28, Sched. 1, s. 78 (1).<o:p></o:p></span></p><p class="paragraphstyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 0cm;"><span style="font-size: medium;">In <a href="https://www.canlii.org/en/on/onsc/doc/2020/2020onsc194/2020onsc194.html"><i><span style="color: #1155cc;">Amlani v. York Condominium Corporation No. 473</span></i></a><a href="https://www.canlii.org/en/on/onsc/doc/2020/2020onsc194/2020onsc194.html"><span style="color: #1155cc;">, 2020 ONSC 194 (CanLII)</span></a>, the owner purchased the unit with the knowledge that there were no prohibitions against smoking in the unit. When the neighbours complained about smoke migrating into their units, the corporation attempted to seal any leaks and, when that didn't work, asked the owner to stop smoking in the unit. The corporation incurred legal fees to attempt to enforce the requirement that the owner stop smoking and registered a lien against the unit pursuant to s. 85(1) of the <i>Condominium Act, 1998.</i><o:p></o:p></span></p><p class="paragraphstyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 0cm;"><span style="font-size: medium;">Koehnen J. held that the legal expenses were not lienable pursuant to s. 85(1) of the <i>Condominium Act, 1998</i> without a court order, despite a declaration that the corporation interpreted as allowing such legal expenses to be lienable in the absence of a court order. The Court held that the corporation's interpretation contravened s. 134 of the Act and an interpretation that contravenes a statutory provision is, by definition, unreasonable: <o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[27] The enforceability of the lien turns on whether the amount the Corporation claims falls within <a href="https://www.canlii.org/en/on/laws/stat/so-1998-c-19/latest/so-1998-c-19.html#sec85_smooth"><span style="color: #1155cc;">s. 85</span></a> or <a href="https://www.canlii.org/en/on/laws/stat/so-1998-c-19/latest/so-1998-c-19.html#sec134_smooth"><span style="color: #1155cc;">s. 134</span></a> of the <i>Act.</i><o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[28] <a href="https://www.canlii.org/en/on/laws/stat/so-1998-c-19/latest/so-1998-c-19.html#sec85_smooth"><span style="color: #1155cc;">Section 85</span></a> of the <i>Act </i>provides:<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">85 (1) If an owner defaults in the obligation to contribute to the common expenses payable for the owner’s unit, the corporation has a lien against the owner’s unit and its appurtenant common interest for the unpaid amount together with all interest owing and all reasonable legal costs and reasonable expenses incurred by the corporation in connection with the collection or attempted collection of the unpaid amount.<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[29] <a href="https://www.canlii.org/en/on/laws/stat/so-1998-c-19/latest/so-1998-c-19.html#sec134_smooth"><span style="color: #1155cc;">Section 134</span></a> of the<i> Act </i>allows the Corporation, among others, to apply to the Superior Court of Justice for an order “enforcing compliance” with any provision of the <a href="https://www.canlii.org/en/on/laws/stat/so-1998-c-19/latest/so-1998-c-19.html"><span style="color: #1155cc;">Act</span></a>, the condominium’s declaration, bylaws or rules (which I may refer to from time to time as its constating documents) and recover the costs of doing so in a court order: <o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">134 (1) Subject to subsection (2), an owner, an occupier of a proposed unit, <b>a corporation</b>, a declarant, a lessor of a leasehold condominium corporation or a mortgagee of a unit <b>may make an application to the Superior Court of Justice for an order enforcing compliance with any provision of this Act, the declaration, the by-laws, the rules </b>or an agreement between two or more corporations for the mutual use, provision or maintenance or the cost-sharing of facilities or services of any of the parties to the agreement (Emphasis added).<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">(5) If a corporation obtains an award of damages or costs in an order made against an owner or occupier of a unit, the damages or costs, together with any additional actual costs to the corporation in obtaining the order, shall be added to the common expenses for the unit and the corporation may specify a time for payment by the owner of the unit.<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[30] The Corporation submits the lien amounts fall within s. 85 of the<i> Act </i>and are automatically enforceable. The Amlanis submit that the lien amounts fall within section 134 of the<i> Act </i>and are not enforceable in the absence of a court order that awards the Corporation damages or costs. Since there has been no court order, the Amlanis submit that the lien is invalid and must be vacated. <o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[31] In determining which interpretation I adopt, the Corporation submits that I must keep in mind the overall purpose of those sections and of the<i> Act </i>which is to place the financial burden created by the conduct of any one unit holder on that particular unitholder rather than on the Corporation. If the financial burden is placed on the Corporation, it is effectively placed on innocent unitholders who must pay for the Corporation’s expenses by way of common expenses or special assessments: <i>Metropolitan Toronto Condominium Corp. No. 1385 v. Skyline Executive Properties Inc.</i>, <a href="https://www.canlii.org/en/on/onca/doc/2005/2005canlii13778/2005canlii13778.html"><span style="color: #1155cc;">2005 CanLII 13778 (ON CA)</span></a>, [2005] O.J. No 1604 at para. <a href="https://www.canlii.org/en/on/onca/doc/2005/2005canlii13778/2005canlii13778.html#par40"><span style="color: #1155cc;">40</span></a>.<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[32] I accept that this is part of the overall scheme of the <i>Act</i> but am nevertheless of the view that the expenses the Corporation claims are not common expenses under s. 85 but are expenses that relate to “enforcing compliance.” It is clear that s. 134 costs cannot be added to the common expenses of the Amlanis’ apartment without an order under section 134 (5): <i>Metropolitan Toronto Condominium Corp. No. 1385 v. Skyline Executive Properties Inc.</i>, <a href="https://www.canlii.org/en/on/onca/doc/2005/2005canlii13778/2005canlii13778.html"><span style="color: #1155cc;">2005 CanLII 13778 (ON CA)</span></a>, [2005] O.J. No 1604 at para. <a href="https://www.canlii.org/en/on/onca/doc/2005/2005canlii13778/2005canlii13778.html#par35"><span style="color: #1155cc;">35</span></a> (C.A.). Here, however, the Corporation seeks to shift the financial burden from itself to Mr. Amlani without a court order authorizing it to do so.<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[33] Common expenses, in their most traditional form, apply to the monthly fees each unit owner pays for utilities and the general upkeep of the condominium project. If a unit owner defaults on those monthly obligations, the default can be liened and the unit can be sold to enforce the lien. <a href="https://www.canlii.org/en/on/laws/stat/so-1998-c-19/latest/so-1998-c-19.html#sec84subsec1_smooth"><span style="color: #1155cc;">Section 84 (1)</span></a> of the<i> Act </i>underscores this interpretation when it provides that a unitholder shall pay common expenses in the proportions specified in the declaration.<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[34] It is one thing to allow the corporation to enforce, by way of lien, common expenses that are applicable to all unit holders and that a majority of unitholders have approved. It is entirely another to allow a condominium corporation the unfettered, unilateral right to impose whatever costs it wants on a unitholder, refer to them as common expenses and thereby acquire the right to sell the unitholder’s apartment.<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[35] I am strengthened in this view by other provisions in the<i> Act </i>that specifically allow a condominium corporation to add certain types of costs unique to a single owner to the common expenses of the particular unit holder without a court order. By way of example, sections 92(1) and (4) provide that a corporation can carry out certain repairs if an owner fails to do so and can add the cost of such repairs to the owner’s common expenses. In a similar vein, section 105(2) provides that if an owner causes damage, the lesser of the cost of repair or the corporation’s insurance deductible may added to the owner’s common expenses. Legal fees and enforcement costs do not fall into these categories. <o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[36] In the Corporation’s communications with Mr. Amlani and in its law firm’s accounts, the services in respect of which the Corporation seeks reimbursement are described as compliance and enforcement expenses, not as common expenses. By way of example:<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">(a) The Fine & Deo letter of July 6, 2017 stated that if Mr. Amlani failed to “comply” he would be held liable for the Corporation’s “cost of enforcing your compliance by means inclusive of a court application under <a href="https://www.canlii.org/en/on/laws/stat/so-1998-c-19/latest/so-1998-c-19.html#sec134_smooth"><span style="color: #1155cc;">section 134</span></a> of the <a href="https://www.canlii.org/en/on/laws/stat/so-1998-c-19/latest/so-1998-c-19.html"><span style="color: #1155cc;">Act</span></a>”.<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">(b) The Fine & Deo account of October 4, 2017 is for “legal costs incurred in enforcement of the Corporation’s Declaration and Rules.”<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[37] It is only in the notice of lien that these enforcement costs are referred to as “common expenses”.<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[38] The Corporation submits that the Declaration allows it to add these costs to Mr. Amlani’s common expenses through two provisions: the definition of common expenses and an indemnification provision.<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[...]<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[43] The Corporation argues the Declaration contains an indemnity in article 11 which allows it to act as it has. The indemnity provides:<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">“<b>Each owner shall indemnify</b> and save harmless <b>the Corporation</b> from and <b>against</b> <b>any</b> loss, <b>cost,</b> damage, injury or liability whatsoever which <b>the Corporation may</b> suffer or <b>incur </b>resulting from or <b>caused by</b> <b>an act </b>or omission <b>of such owner</b>, … <b>to</b> or with respect to <b>the common elements and/or all other units</b> except for any loss, costs, damages, injury or liability caused by an insured (as defined in any policy or policies of Insurance) and insured against by the Corporation. (Emphasis added)<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">All payments pursuant to this clause are deemed to be additional contributions toward the common expenses and recoverable as such.”<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[44] The Corporation interprets the indemnity as meaning that the legal expenses of its lawyers are lienable under section 85 (1) of the Act and relies on <i>London Condominium Corporation No. 13 v. Awaraji</i>, <a href="https://www.canlii.org/en/on/onca/doc/2007/2007onca154/2007onca154.html"><span style="color: #1155cc;">2007 ONCA 154</span></a> for the proposition that a court should not interfere with a condominium corporation’s interpretation of its declaration unless it is unreasonable.<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[45] In my view, the Corporation’s interpretation of the indemnity is unreasonable.<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[46] The indemnity applies only with respect to costs the Corporation incurs arising out of acts by owners “to or with respect to the common elements and/or all other units.” There was no<i> </i>act<i> </i>of Mr. Amlani to the common elements or to all other units. Moreover, the costs the Corporation incurred after Mr. Amlani left his unit could not possibly arise out of acts by Mr. Amlani to the common elements or all other units because he was out of the building and was not engaging in any acts with respect to the common elements or otherwise. Finally, the interpretation the Corporation advances contravenes <a href="https://www.canlii.org/en/on/laws/stat/so-1998-c-19/latest/so-1998-c-19.html#sec134subsec5_smooth"><span style="color: #1155cc;">section 134 (5)</span></a> of the <i>Act </i>because the costs it claims related to compliance and enforcement costs without being embodied in a court order. An interpretation that contravenes a statutory provision is, by definition, unreasonable. Here again it is relevant to note that the legal accounts for which the corporation claims indemnity describe the services as relating to the “enforcement of the Corporation’s Declaration and Rules” and not as relating to the protection of any common elements.<o:p></o:p></span></p><p class="paragraphstyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 0cm;"><span style="font-size: medium;">In <a href="https://www.canlii.org/en/on/oncat/doc/2021/2021oncat13/2021oncat13.html"><i><span style="color: #1155cc;">Rahman v. Peel Standard Condominium Corporation No. 779</span></i></a><a href="https://www.canlii.org/en/on/oncat/doc/2021/2021oncat13/2021oncat13.html"><span style="color: #1155cc;">, 2021 ONCAT 13 (CanLII)</span></a>, the unit owner had a disability and possessed an accessible parking permit. He used the accessible parking spaces at the condominium despite the objections of the corporation that his use violated the corporation's declaration. The corporation took the position that the accessible parking spaces were for visitors only. The Tribunal interpreted the declaration and found that the owner was entitled to park in the accessible spaces. The Tribunal held that the corporation had unreasonably imposed costs of enforcing its declaration against the unit owner and added those costs to the owner's common expenses and filed a lien against the unit. The corporation was therefore not entitled to add the reasonable expenses related to the enforcement to the common expenses payable for the unit pursuant to s. 134(5) of the <i>Condominium Act.</i><o:p></o:p></span></p><p class="paragraphstyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 0cm;"><span style="font-size: medium;">Because the corporation had not quantified the costs it claimed related to its enforcement of the declaration against the owner, the Tribunal was unable to determine what part of the lien related to the unreasonably imposed costs. The Tribunal ordered the corporation to stop its enforcement proceedings, including the registration of the lien against the unit, and to provide the owner with an accounting of the costs related to enforcement:<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[35] PSCC779 issued its second enforcement letter on June 19, 2020. This letter raises new grounds of harassment against Mr. Rahman, including writing two emails 2 minutes apart to PSCC779 board members in violation of the “Communication Policy” of PSCC779. The condominium corporation repeats its position that Mr. Rahman has not provided sufficient medical evidence to support a human rights accommodation to a handicap parking space. PSCC779 claims a chargeback of $1,833.99 for “Legal Costs of Enforcement” to that date. The claim is made in a one-line statement with no details provided.<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[36] On June 23, 2020, PSCC779 issued a third enforcement letter. This letter responded to emails from Mr. Rahman. In this letter, PSCC779 took the position that the accessible parking spaces were for visitors only. The letter concludes by advising Mr. Rahman that, “because of your further harassment of the Corporation’s Building Manager, you are responsible for indemnifying the Corporation for its increased legal costs in this enforcement matter against you . . ..” The letter attaches an updated legal bill, with a one-line charge of $2,522.16 for undetailed legal costs.<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[37] On October 2, 2020, PSCC779 sent a “follow-up” to its third enforcement letter. The letter refers to alleged violations of PSCC779’s Communication Policy and alleged harassment by Mr. Rahman as well as to his continued use of the accessible parking spaces. This letter offered Mr. Rahman the opportunity to lease a space in the handicap parking for, by way of example, $100 per month if Mr. Rahman would provide “sufficient medical documentation”. The letter concluded by stating that the “payout statement” included in the June 23rd letter was no longer valid and that if Mr. Rahman wished to pay off the chargeback, he should contact PSCC779’s legal counsel for an updated account. The letter refers to the outstanding chargeback as being added to “your Unit’s arrears”. It is not clear from this reference if PSCC779 was adding its claims for legal costs of enforcing compliance to Mr. Rahman’s common expenses but that is the implication.<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[38] On October 8, 2020, Mr. Rahman’s doctor provided a letter, as discussed above. The letter ends,<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">Mr. Rahman Has a disability parking permit and has spoken to me on a number of occasions regarding harassment by his condo management which he has told me is causing stress and anxiety in his life. Any action to reduce this stress would obviously benefit Mr. Rahman’s overall Health. IF you require any further information please do not hesitate to contact our office.<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">PSCC779 submitted that they did not find the letter sufficient support for Mr. Rahman’s request and wrote to the doctor for more specific information. They did not receive a reply, which they assume was on Mr. Rahman’s instructions.<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[39] During the month of October, there were a number of email exchanges between the parties, during some of which Mr. Rahman threatened to report PSCC779’s counsel to the Law Society of Ontario, a threat for which Mr. Rahman subsequently apologised.<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[40] On October 14, 2020, PSCC779 served Mr. Rahman with a Notice of Lien in the amount of $6,982.70. On October 26, 2020, PSCC779 emailed Mr. Rahman and advised Mr. Rahman that it was on that date registering a Certificate of Lien on Mr. Rahman’s condominium unit. The email continues, “Please be advised that PSCC779’s costs of our continued involvement in this enforcement matter against you is [sic] being charged back to your Unit’s common expenses – including the legal costs of having to defend and/or counterclaim against the Action in the Brampton Superior Court which you apparently electronically-issued [sic] this morning.” PSCC779 submitted that, pursuant to its Declaration, it was charging Mr. Rahman interest at 18% per annum, compounded monthly, on its cost claims.<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[41] There are a series of letters in November and December advising Mr. Rahman that the amount secured by the lien was increasing. On December 31, 2020, a Notice of Sale was registered by PSCC779 against Mr. Rahman’s condominium for an amount of $13,839.68, which was expected to increase by February 1, 2021 to $15,162.51. PSCC779 advised that if payment in full was not received by February 19, 2021, PSCC779 would proceed to sell Mr. Rahman’s condominium.<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[42] Mr. Rahman had earlier protested that PSCC779 could not add its legal costs in this matter to his common expenses without a court order. Mr. Rahman cited subsection 134(5) of the Act, which reads:<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;"> If a corporation obtains an award of damages or costs in an order made against an owner or occupier of a unit, the damages or costs, together with any additional actual costs to the corporation in obtaining the order, shall be added to the common expenses for the unit and the corporation may specify a time for payment by the owner of the unit.<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[43] In response, PSCC779 cited the case of <i>Amlani v. York Condominium Corporation No. 473, </i><a href="https://www.canlii.org/en/on/onsc/doc/2020/2020onsc194/2020onsc194.html"><span style="color: #1155cc;">2020 ONSC 194</span></a>, a decision of the Superior Court of Ontario. PSCC779 takes the position that this case authorises them, with properly constructed indemnification clauses in its Declaration, to add its costs of enforcing compliance with its Declaration to Mr. Rahman’s common expenses without seeking a court order. The importance of this interpretation is that common expenses may be the subject of a lien and that lien may be enforced through the sale of, in this case, Mr. Rahman’s condominium unit.<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[44] The <i>Amlani </i>case deals with the interpretation of an indemnification clause and the operation of section 134 of the Act. However, the case does not stand for the proposition that, through deft wording of an indemnification clause, a condominium corporation can deprive an owner of his or her day in court as provided for in subsection 134(5) of the Act. In fact, the Court says, at paragraph 34,<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">It is one thing to allow the corporation to enforce, by way of lien, common expenses that are applicable to all unit holders and that a majority of unitholders have approved. It is entirely another to allow a condominium corporation the unfettered, unilateral right to impose whatever costs it wants on a unitholder, refer to them as common expenses and thereby acquire the right to sell the unitholder’s apartment.<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[45] Another way of considering the matter is to determine if PSCC779’s interpretation of its indemnification clauses is reasonable. Here again, reference may be had to the <i>Amlani </i>case, where the Court wrote, at paragraph 46:<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">Finally, the interpretation the Corporation advances contravenes <a href="https://www.canlii.org/en/on/laws/stat/so-1998-c-19/latest/so-1998-c-19.html#sec134subsec5_smooth"><span style="color: #1155cc;">section 134 (5)</span></a> of the <a href="https://www.canlii.org/en/on/laws/stat/so-1998-c-19/latest/so-1998-c-19.html"><i><span style="color: #1155cc;">Act</span></i></a><a href="https://www.canlii.org/en/on/laws/stat/so-1998-c-19/latest/so-1998-c-19.html"></a><i> </i>because the costs it claims related to compliance and enforcement costs without being embodied in a court order. An interpretation that contravenes a statutory provision is, by definition, unreasonable<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[46] From the outset PSCC779 took an aggressive posture in enforcing compliance despite the fact that it would have been clear to a reasonable person that Mr. Rahman had, at the minimum, a prima facie case for his use of the accessible parking space. PSCC779’s position became increasingly aggressive. It added its legal costs in enforcing the Declaration, together with associated interest charges, to Mr. Rahman’s common expenses. Despite Mr. Rahman, correctly, advising PSCC779 that it could not add these costs to his common expenses without a court order as required under subsection 134(5) of the Act, PSCC779 persisted. It not only added those costs to Mr. Rahman’s common expenses but attempted to collect its legal costs and interest by way of lien and notice of sale. It proceeded despite hearing from Mr. Rahman’s doctor that its treatment of him was causing him stress and anxiety.<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[47] PSCC779 has not quantified the costs it is claiming related to its enforcement of compliance of Article 4.2 of its Declaration against Mr. Rahman. It is impossible to determine what part of the lien registered against Mr. Rahman’s property or the Notice of Sale relates to claims of indemnity of enforcement costs concerning Mr. Rahman’s use of the accessible parking. Despite being specifically invited to set out its costs in this hearing, PSCC779 declined to do so. As discussed above, it apparently takes the position that it is sufficient to assert a claim in order to force Mr. Rahman to defend against it. PSCC779 is doing exactly what the Court in the <i>Amlani </i>case warned against, that is, PSCC779 claims, “the unfettered, unilateral right to impose whatever costs it wants on a unitholder, refer to them as common expenses and thereby acquire the right to sell the unitholder’s apartment.”<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[48] At some point in pursuing this matter, PSCC779 tipped over from aggressively pursuing its claims to harassing one of its condominium unit owners. PSCC779 persistently ignored Mr. Rahman’s claims, brushed off his references to the Act and the Mississauga Parking By-Law. Most egregiously, despite the letter from Mr. Rahman’s doctor testifying to the stress it was causing, PSCC779 registered a lien on Mr. Rahman’s condominium units and is now moving to enforce the lien by selling Mr. Rahman’s home. It is important to underscore that both the lien and the Notice of Sale are being pursued in contravention of subsection 134(5) of the Act, which requires a court order before enforcement costs can be added to Mr. Rahman’s common expenses.<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[49] What is to be done about this? The first step is to have PSCC779 provide Mr. Rahman with a complete accounting of what costs it has claimed for enforcement of Article 4.2 of its Declaration against Mr. Rahman. It is important that Mr. Rahman understand what part of the lien against his property and the Notice of Sale relates to this matter and what part he will have to seek a remedy for in another forum.<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[50] Second, PSCC779 must stop any enforcement actions it is currently taking that relate to costs it claims in enforcing Article 4.2 of its Declaration against Mr. Rahman. Included in these actions are the registration of a lien against Mr. Rahman’s condominium units and the Notice of Sale served by PSCC779 against him.<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[51] I will direct PSCC779 to pay Mr. Rahman’s costs in this matter in the amount of $200 under subparagraph 1.44(1) 4 of the Act.<o:p></o:p></span></p><p class="paragraphstyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 0cm;"><span style="font-size: medium;">In <a href="https://www.canlii.org/en/on/onca/doc/2006/2006canlii20838/2006canlii20838.html"><i><span style="color: #1155cc;">Metro Toronto Condominium Corporation No. 545 v. Stein</span></i></a><a href="https://www.canlii.org/en/on/onca/doc/2006/2006canlii20838/2006canlii20838.html"><span style="color: #1155cc;">, 2006 CanLII 20838 (ON CA)</span></a>, the corporation determined that all unit owners were required to carry out Level 5 remediation in response to a mold problem. The respondents carried out Level 1 remediation in their unit, which was more affordable and was suggested to them by a mycologist. The corporation's application to enter the unit to carry out the Level 5 remediation was denied. The corporation appealed from that order, arguing that the application judge erred by failing to defer to the corporation's decision to require Level 5 remediation. <o:p></o:p></span></p><p class="paragraphstyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 0cm;"><span style="font-size: medium;">Rouleau J.A., for the Court of Appeal, upheld the application judge's decision, which was based on the finding that the corporation had not acted reasonably in imposing its standard of remediation and that reasonable lower cost alternatives ought to have been considered, especially in light of there being no evidence of harm to other units. The Court held that the Court of Appeal's decision in <i>Dvorchik</i> did not apply in this case because the corporation had made the strategic decision not to make the requirement for Level 5 remediation a rule: <o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[19] The application judge rejected the Corporation’s submission that, by remediating to a Level 1 rather than a Level 5 standard, the respondents had created a dangerous situation as contemplated by <a href="https://www.canlii.org/en/on/laws/stat/rso-1990-c-c26/latest/rso-1990-c-c26.html#sec117_smooth"><span style="color: #1155cc;">s. 117</span></a> of the <i>Condominium Act</i>. She went on to find that this section of the Act did not empower the Board of the Corporation to impose a particular method of remediation where it could not establish that the method chosen by the respondents had not reasonably dealt with the problem.<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[20] The application judge concluded that the Corporation failed to meet its onus of proving that a condition currently existed that was “likely to damage the property or cause injury to an individual”.<a href="https://www.canlii.org/en/on/onca/doc/2006/2006canlii20838/2006canlii20838.html?searchUrlHash=AAAAAQAKcmVhc29uYWJsZQAAAAEAGVNPIDE5OTgsIGMgMTksIFNlY3Rpb24gOTIAAAABABEvNjY1LWN1cnJlbnQtMSM5MgE&resultIndex=4#_ftn3"><span style="color: #1155cc;">[3]</span></a> In the event that she was wrong on this point, and that the Corporation had in fact established the existence of such a condition, she went on to consider whether the Corporation was acting reasonably so as to justify the court granting the discretionary relief being sought. On this latter issue the application judge concluded that the Corporation had not acted reasonably in imposing its standard of remediation. Central to this conclusion was her finding that the Board of the Corporation had failed to consider reasonable alternatives to the requirement that all units carry out a Level 5 remediation. Reasonable lower cost alternatives ought to have been considered, especially in light of there being no evidence of harm to other units.<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[...]<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">b) The decision in <i>Dvorchik</i><o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[41] In <i>Dvorchik</i>, the Corporation applied under s. 49(1) of the then <i>Condominium Act</i><a href="https://www.canlii.org/en/on/laws/stat/rso-1990-c-c26/latest/rso-1990-c-c26.html"><span style="color: #1155cc;">, R.S.O. 1990, c. C.26</span></a>, for an order directing the respondent to comply with a corporation rule that prohibited unit holders from having pets weighing more than twenty-five pounds. Section 49(1) is similar to s. 134(1) of the current <i>Condominium Act</i>.<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[42] At first instance, Keenan J. found the rule restricting pet size to be invalid and unenforceable. He did so because the Condominium Corporation had failed to provide evidence proving that the twenty-five pound limit was reasonable.<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[43] In allowing the appeal, the Court of Appeal made the following statement about the deference to be paid to condominium corporations:<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">The condominium board was not obliged to hear evidence in reaching its conclusion that larger pets be prohibited. In making its rules, the Board is not performing a judicial role, and no judicialization should be attributed either to its function or its process. In an application brought under s. 49(1), a court should not substitute its own opinion about the propriety of a rule enacted by a condominium board unless the rule is clearly unreasonable or contrary to the legislative scheme. In the absence of such unreasonableness, deference should be paid to rules deemed appropriate by a board charged with responsibility for balancing the private and communal interests of the unit owners (para. 5).<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">c) Does <i>Dvorchik </i>apply?<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[44] The court in <i>Dvorchik</i> was considering the enforcement of a rule adopted by a condominium corporation pursuant to s. 29(1) of the previous <i>Condominium Act</i> (s. 58 of the current <i>Condominium Act</i>). The rule adopted in that case clearly fell within the scope of the rule-making authority of the condominium board. The operative section of the Act specified that the condominium corporation’s rule-making power was only limited by the requirements that the rules be “reasonable” and “consistent” with the <i>Condominium Act</i>.<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[45] The case at bar does not involve a rule, and the sections relied on by the Corporation do not contain language similar to s. 29 of the previous Act. The <i>Dvorchik</i> decision is, therefore, clearly distinguishable on its facts.<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">d) Should the principles in <i>Dvorchik</i> be extended to apply in the present case?<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[46] The Corporation argues that its judgment that, absent a Level 5 remediation, a dangerous situation will be allowed to exist in those units is a reasonable one made with the benefit of expert advice. As a result this decision should be given the same deference as provided in <i>Dvorchik</i> without regard to the fact that it is not a “rule” or “by-law” of the Corporation.<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[47] In my view, <i>Dvorchik</i> should not be extended to the present case. I say this for two reasons. First, the decision by the Corporation that it would not seek to structure the remediation requirement as a rule creates an important distinction from <i>Dvorchik</i>. Second, this case raises both different and competing rights and duties under the <i>Condominium Act</i>.<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[48] It is important not to lose sight of the fact that the Corporation chose to frame its application as a dispute with respect to the interpretation of <a href="https://www.canlii.org/en/on/laws/stat/rso-1990-c-c26/latest/rso-1990-c-c26.html#sec117_smooth"><span style="color: #1155cc;">ss. 117</span></a>, <a href="https://www.canlii.org/en/on/laws/stat/rso-1990-c-c26/latest/rso-1990-c-c26.html#sec119_smooth"><span style="color: #1155cc;">119</span></a> and<a href="https://www.canlii.org/en/on/laws/stat/rso-1990-c-c26/latest/rso-1990-c-c26.html#sec134_smooth"><span style="color: #1155cc;">134</span></a> of the <i>Condominium Act</i> and not as “a disagreement between the parties with respect to the declaration, by-laws or rules” of the corporation (see <a href="https://www.canlii.org/en/on/laws/stat/rso-1990-c-c26/latest/rso-1990-c-c26.html#sec132subsec4_smooth"><span style="color: #1155cc;">s. 132(4)</span></a> of the <i>Condominium Act</i>). Whether or not the remediation requirement could be made into a rule, the Corporation appears to have chosen not to make it a rule so as to avoid the s. 134(2) requirement to go to mediation or arbitration as a precondition to any court application. Thus, the Corporation’s failure to adopt the requirement for Level 5 remediation as a “rule” is more than semantics. It reflects a strategic decision by the Corporation. By choosing this route, the Corporation cannot benefit from the statutory provision relied on in <i>Dvorchik</i>.<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[49] More importantly, in the present case, the court is being called upon to enforce a decision of the Corporation that, unlike <i>Dvorchik</i>, is not within the Corporation’s exclusive area of responsibility. Here there are competing obligations and duties. The <i>Condominium Act</i> provides that unit holders are responsible for the maintenance of their units.<a href="https://www.canlii.org/en/on/onca/doc/2006/2006canlii20838/2006canlii20838.html?searchUrlHash=AAAAAQAKcmVhc29uYWJsZQAAAAEAGVNPIDE5OTgsIGMgMTksIFNlY3Rpb24gOTIAAAABABEvNjY1LWN1cnJlbnQtMSM5MgE&resultIndex=4#_ftn6"><span style="color: #1155cc;">[6]</span></a> The Corporation only has authority to interfere with and override these unit holders’ responsibilities and obligations where the unit holder has failed in his obligation to such a degree that a risk outlined in <a href="https://www.canlii.org/en/on/laws/stat/rso-1990-c-c26/latest/rso-1990-c-c26.html#sec92subsec3_smooth"><span style="color: #1155cc;">s. 92(3)</span></a> or a condition likely to damage the property or cause injury to an individual as described in s. 117 is allowed to exist and continue. <a href="https://www.canlii.org/en/on/onca/doc/2006/2006canlii20838/2006canlii20838.html?searchUrlHash=AAAAAQAKcmVhc29uYWJsZQAAAAEAGVNPIDE5OTgsIGMgMTksIFNlY3Rpb24gOTIAAAABABEvNjY1LWN1cnJlbnQtMSM5MgE&resultIndex=4#_ftn7"><span style="color: #1155cc;">[7]</span></a><o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[50] As the statutory rights and obligations of both parties are engaged, a careful balancing is required. There is no statutory or principled reason why deference should be afforded to the Corporation’s decision on the facts of this case.<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">CONCLUSION<o:p></o:p></span></p><p class="blockquotestyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 11pt 25pt;"><span style="font-size: medium;">[51] For these reasons, I would dismiss the appeal. I would award the respondents their costs on a partial indemnity basis fixed at $10,000 inclusive of GST and disbursements.</span><o:p></o:p></p><p class="headingstyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.280001px; margin: 22.5pt 0cm 11pt; text-decoration: underline;">Authorities<o:p></o:p></p><p class="authoritiesstyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.6px; margin: 0cm 0cm 0.0001pt;"><a href="https://www.canlii.org/en/on/laws/stat/so-1998-c-19/latest/so-1998-c-19.html"><i><span style="color: #1155cc;">Condominium Act, 1998</span></i></a>, SO 1998, c 19<o:p></o:p></p><p class="authoritiesstyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.6px; margin: 0cm 0cm 0.0001pt;"><a href="https://www.canlii.org/en/on/onsc/doc/2020/2020onsc194/2020onsc194.html"><i><span style="color: #1155cc;">Amlani v. York Condominium Corporation No. 473</span></i></a>, 2020 ONSC 194 (CanLII)<o:p></o:p></p><p class="authoritiesstyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.6px; margin: 0cm 0cm 0.0001pt;"><a href="https://www.canlii.org/en/on/oncat/doc/2021/2021oncat13/2021oncat13.html"><i><span style="color: #1155cc;">Rahman v. Peel Standard Condominium Corporation No. 779</span></i></a>, 2021 ONCAT 13 (CanLII)<o:p></o:p></p><p class="authoritiesstyle" style="color: #333333; font-family: "Times New Roman", serif; line-height: 21.6px; margin: 0cm 0cm 0.0001pt;"><a href="https://www.canlii.org/en/on/onca/doc/2006/2006canlii20838/2006canlii20838.html"><i><span style="color: #1155cc;">Metro Toronto Condominium Corporation No. 545 v. Stein</span></i></a>, 2006 CanLII 20838 (ON CA)<o:p></o:p></p>Michael K. E. Thielehttp://www.blogger.com/profile/10247495615982921581noreply@blogger.com5tag:blogger.com,1999:blog-6703393754400182307.post-67904111688745474172023-06-14T13:21:00.006-04:002023-06-15T06:09:21.724-04:00Complaining tenant dies. What happens to eviction proceedings?<p style="text-align: justify;"><b><i><span style="font-size: large;">Does the death of a complaining tenant void the eviction of the perpetrator?</span></i></b></p><p style="text-align: justify;"><span style="font-size: medium;">What a weird topic for an article on residential landlord and tenant law. However, it seems like an increasingly current and real issue given how the Landlord and Tenant Board is scheduling and hearing cases. The LTB is taking many months if not years to resolve cases. Circumstances change over that time and yes, complaining tenants some times pass away. Does the extended passage of time, the death of the complainant, play to the favour of the tenant who is being evicted?</span></p><p style="text-align: justify;"><span style="font-size: medium;">While I have introduced this issue with the "death" of the complainant, the fact is that there are similar issues to "death" that are being argued as relevant and dispositive of eviction applications. What is "similar" to death? In the unique context of Landlord and Tenant law I would say that the stopping of a negative behaviour for months and months and months before an eviction hearing is similar to the "death" of a complainant. The stopped negative behaviour (screaming, fighting, swearing, anti-social actions) is similar in that no one is being bothered by the offending tenant any longer. Similarly, if the offending actions were caused by a specific person in the offending tenants household and they have moved out, are no longer living there, or no longer visiting, that has the effect of no one being bothered any more by the offending tenant. The "no one" being bothered is, in a sense, the tenant who died. Therefore, if the deceased tenant is no longer complaining or being bothered (i.e. no one is being bothered), should the Landlord and Tenant Board entertain a termination and eviction of the offending tenant? </span></p><p style="text-align: justify;"><span style="font-size: medium;">Put another way, should a tenant (or someone in their household) who was raising all kinds of hell and making life miserable for some other tenants or the landlord be able to take advantage of procedural delays and the passage of time (or the death of the complainer) to say that the issue is ancient history and is now irrelevant. The legal concept that is often argued is that the passage of time has made the case "moot". "Moot" being defined as a circumstance that has little or no practical relevance.</span></p><p style="text-align: justify;"><span style="font-size: medium;">This issue tends to come up in the following way. A tenant commits an anti-social action (say--smoking in the hallways). The smoking bothers a neighbour and triggers her asthma. The landlord serves an N5 and says the smoking in the hallways must stop. The tenant complies for a few weeks and then a month later starts smoking in the hallways again. The landlord serves a second N5 and files an application to the Landlord and Tenant Board. That application is not scheduled for hearing for 14 months (not an uncommon timeline these days---but the exact timing isn't the key to his article). Assume that prior to the hearing date the tenant who was complaining about being bothered by the smoke passes away. Alternatively, assume that shortly <u>after</u> the hearing the complaining tenant passes away. Assume also in the first scenario that the tenant stopped smoking "cold turkey" 4 months before the hearing. In the second scenario the smoker tenant wants to review or appeal on the basis that the person bothered is now deceased so why evict?</span></p><p style="text-align: justify;"><span style="font-size: medium;">The passage of time between objectionable behaviour and the ultimate hearing and whether anyone is still around to be bothered by the behaviour is a difficult issue. What if, instead of the complainant dying, the persons bothered decided to simply move out. Maybe because of the objectionable behaviour or maybe just because their life took them elsewhere. Does their moving out and being unaffected by the smoking tenant change what should happen at the hearing of the case?</span></p><p style="text-align: justify;"><span style="font-size: medium;">I know that in my current practice that I am spending a lot of time on three parts of an N5 application. I seek to prove at least one serious issue in the first N5, then the serious issues in the 2nd N5, and then I spend some serious time proving negative behaviours between the second N5 and the actual hearing date (which, as indicated, can be months to years). The reason for addressing the time between the 2nd N5 and the hearing date is to challenge the idea that the issues have become moot, meaningless, or pointless. The objective is to establish that things have not gotten better and hence, the idea that the offending tenant should only be evicted if the objectionable actions are still ongoing is avoided. </span></p><p style="text-align: justify;"><span style="font-size: medium;">It is oft argued under section 83 RTA (discretion section), that the stopping of negative behaviour for long periods of time, or no one who is bothered still being in the surrounding rental units or in the building, is a reason to refuse eviction. Is that the correct way to be thinking about this?</span></p><p style="text-align: justify;"><span style="font-size: medium;">To inform my thinking on this issue I've recently read the Divisional Court's decision in <a href="https://www.canlii.org/en/on/onscdc/doc/2023/2023onsc3377/2023onsc3377.html?searchUrlHash=AAAAAQAIbGFuZGxvcmQAAAAAAQ&resultIndex=2#document" target="_blank">Holland v. 149732 Ontario Inc., 2023 ONSC 3377 (CanLII)</a>, a case that seems to have been ably argued by Mr. John Dickie here in Ottawa. In that case, the relevant time line appears to be: LTB hearing began March 23, 2021 and finished June 8, 2021. A decision on that case was issued November 9, 2021, terminating the tenancy for November 20, 2021. The evicted tenant filed an appeal on November 20, 2021 (thereby stopping the eviction until the hearing of the appeal). The tenant who suffered at the hands of the evicted tenant died on May 12, 2022. The appeal was heard on May 31, 2023.</span></p><p style="text-align: justify;"><span style="font-size: medium;">As you can see from the above dates, the time line runs over more than 2 years. What is missing from the timeline is the date that the landlord applied to the LTB and how long it took to get to the hearing that started in March 23, 2021. The appealed decision that would contain this information does not appear to be reported (yet). However, it is entirely fair to presume that the case at the LTB would have been pending for at least a year before the hearing started in March 2021. Hence, the life of the case is just over 3 years long.</span></p><p style="text-align: justify;"><span style="font-size: medium;">What the Divisional Court in <i>Holland</i> tells us is that the "appeal is <u>not</u> moot because H.D. has died" (H.D. was the complaining tenant). The Court goes on to say that the "the fault is not wiped out or cancelled because the victim of the interference has died". This, I think, is a rather significant direction from the Divisional Court on how to look at the changing circumstances of cases due to the passage of time. The fact that the complainant has died (and therefore is no longer bothered) does not make the case pointless and moot.</span></p><p style="text-align: justify;"><span style="font-size: medium;">The Court goes on to make another very important point. A landlord in pursuing an eviction against a tenant, even where the complaining tenant has died, is obligated to future new tenants to make reasonable efforts to ensure that those new tenants are not subjected to substantial interference by the offending tenant. This, I think, is a very valuable direction from the Court as it is very often the case that by the time a landlord gets to hearing the neighbours who have been harassed and stressed out have moved out of the building to get away from the offending tenant. Their moving out does <u>not</u> create a pass for the offending tenant.</span></p><p style="text-align: justify;"><span style="font-size: medium;">The Court, in <i>Holland</i>, further cites a decision in <a href="https://www.canlii.org/en/on/onscdc/doc/2015/2015onsc6986/2015onsc6986.html" target="_blank">North Avenue Road Corporation v. Travares, 2015 ONSC 6986</a>, also a Divisional Court decision. This case actually finds that the LTB errs in using section 83 to determine that an issue is "moot" because the tenant complaining had moved out by the time of the hearing. The Court indicates that the finding that the issue is moot is in fact incorrect and that the LTB erred by failing to consider that the landlord has a duty to future tenants. While the Court does not overturn the Board's decision to maintain the tenancy and evict the tenant, the Court does set aside the decision and sends it back to the LTB for a fresh determination.</span></p><p style="text-align: justify;"><span style="font-size: medium;">CONCLUSION</span></p><p style="text-align: justify;"><span style="font-size: medium;">The passage of time, the stopping of activity for a long period of time before the eventual hearing, or the moving out of the persons who suffered from the offending activity, is not a basis to argue that an issue has become moot. A landlord has a continuing obligation to not only the tenant (who died or who has moved out) but to all future tenants who may be affected by the offending activity. </span></p><p style="text-align: justify;"><span style="font-size: medium;"><br /></span></p><p style="text-align: justify;"><span style="font-size: medium;">Michael K .E. Thiele</span></p><p style="text-align: justify;"><br /></p>Michael K. E. Thielehttp://www.blogger.com/profile/10247495615982921581noreply@blogger.com0tag:blogger.com,1999:blog-6703393754400182307.post-41032927562176082272023-06-12T17:37:00.001-04:002023-06-12T17:37:21.658-04:00Refunding Compensation to Landlord if N12 or N13 is refused<p> <b>What are the Rules for Compensation Refunds under the RTA?</b></p><p>Landlords who seek to terminate and evict tenants on the basis of an N12 become aware that it is a requirement of these termination notices that the tenant must be paid compensation equal to one month's rent (presuming a monthly tenancy) (<a href="https://www.canlii.org/en/on/laws/stat/so-2006-c-17/latest/so-2006-c-17.html?autocompleteStr=resident&autocompletePos=1#sec49.1subsec1" target="_blank">Section 49.1 RTA</a>). The N12 form is used to terminate a tenancy for landlord's own use (or the other permitted users related to the landlord) or for a purchaser's own use (or the other permitted users related to the purchaser). The compensation is payable before the termination date that is listed in the N12. This date is required to be a minimum of 60 days after service of the N12 and must be for the end of term (rental period). If the compensation is not paid then it is possible that the N12 will be void and any application brought by the Landlord to terminate and evict the tenant will be dismissed. [Note that the law has evolved a bit and it should no longer be an automatic dismissal if the compensation is not paid by the termination date--see the blog article prior to this one for caselaw].</p><table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: left;"><tbody><tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjqHi-RBY6ty7a3mnQOtmtCEvyN-oexg-Zrpt29qeP73jZBM4hSwYKVMeNuyUVkQOQS67Z334veeT5eK5p8rYR6fnsEuLYqbtdfJg7EEC0D9dOqTIk0cpBeSrvkF72rYHtTK85yBa-D6SebQfnRaImpA_3aMjOh_erq_PZOQJdDmbFL-RhVLGml6fCQVQ/s2200/N12%20(31)_Page_1.jpg" imageanchor="1" style="clear: left; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img alt="N12 Form Image from the Landlord Tenant Board" border="0" data-original-height="2200" data-original-width="1700" height="640" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjqHi-RBY6ty7a3mnQOtmtCEvyN-oexg-Zrpt29qeP73jZBM4hSwYKVMeNuyUVkQOQS67Z334veeT5eK5p8rYR6fnsEuLYqbtdfJg7EEC0D9dOqTIk0cpBeSrvkF72rYHtTK85yBa-D6SebQfnRaImpA_3aMjOh_erq_PZOQJdDmbFL-RhVLGml6fCQVQ/w494-h640/N12%20(31)_Page_1.jpg" title="N12 Form" width="494" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;"></td></tr></tbody></table><br /><p><br /></p><p>What ends up happening, that often angers (or perhaps even enrages) landlords is that they serve the N12 in accordance with the rules and then pay the compensation as required and then the tenant refuses to move out. That leaves the landlord down the equivalent of a month's rent, likely frustrated at being unable to move into the unit or frustrated at being unable to close the real estate transaction to sell the unit for the purchaser to move in. At this stage, all that a landlord can do is file an application to the Ontario Landlord and Tenant Board, in Form L2, and wait for a hearing at which they can argue that the tenancy should be terminated and the tenant evicted.</p><p>It might seem that getting an eviction Order is automatic if the proper form is served and the compensation is paid. In reality, that is not necessarily the case. A tenant is permitted to challenge the good faith of an N12, challenge the assertion that the landlord actually intends to move in or that the purchaser actually intends to move in. There can be indicia of "bad faith" and certainly the Landlord and Tenant Board can refuse and deny the termination and eviction application. There are circumstances where human rights considerations come into play and if the landlord's use seems less necessary compared to the tenant's need then a refusal is possible (though exceedingly rare).</p><p>There are then a whole slew of technical defences that may also result in a dismissal of the application. Notices of Termination need to be "perfect" and what many often consider minor technicalities are actually fatal defects and the application is necessarily dismissed. The Notice of Termination process, is an involuntary termination of a tenancy and we can't forget it is the removal of someone from their home. It is a unilateral act. Hence, the Court of Appeal (from so long ago you could say from time immemorial), has held that the termination provisions are mandatory requirements that can not be overlooked.</p><p>So, what happens to the already <i>paid compensation</i> if the Landlord serves the N12 (for landlord's own use or purchaser's own use), and for some reason the application is denied/refused/withdrawn? </p><p>The Residential Tenancies Act contemplates this at section <a href="https://www.canlii.org/en/on/laws/stat/so-2006-c-17/latest/so-2006-c-17.html?autocompleteStr=resident&autocompletePos=1#sec73.1subsec1" target="_blank">73.1 RTA</a> where it states as follows:</p><p><b><i> <a href="https://www.canlii.org/en/on/laws/stat/so-2006-c-17/latest/so-2006-c-17.html?autocompleteStr=resident&autocompletePos=1#sec73.1subsec1" target="_blank"> 73.1(1) If the landlord compensated the tenant under section 48.1, 49.1, 52, 54, 55, as the case may be, in connection with a notice of termination under section 48, 49, or 50 and the Board refuses to grant an application under section 69 for an order terminating the tenancy and evicting the tenant based on the notice, the Board <u>may</u> order that the tenant pay back the compensation to the landlord. [emphasis added]</a></i></b><br /></p><p>Many people have interpreted this section in such as way as to imply that the compensation may only be kept by the tenant if the tenant is evicted by the N12 and the Application. The suggestions is that the compensation is a payment for <i>leaving </i>or being removed from the property and that if the tenant gets to stay in the unit then the compensation needs to be returned to the Landlord. This view, I think you will find is the dominant view in the reported caselaw (though the LTB has not been reporting/releasing its caselaw since October 2022) and most cases show an automatic order for the tenant to return compensation where eviction is refused.</p><p>In my opinion, this view of the compensation (as payment for moving out) is not the correct interpretation of the section. The cases in which tenants have been ordered to return compensation have been decided in an analysis that seems rather binary. If evicted, compensation kept by tenant. If not evicted, compensation ordered returned. Such an automatic and binary approach does not do justice to the word "<b><u>may</u></b>" as written in section 73.1 RTA. The word may, in my opinion, implies a broader flexibility and discretion that needs to be exercised. I say this because if the proper interpretation is that compensation must be returned if termination is not granted then the section would say that in a straight forward manner. The section could be written as a simple yes or no directive based on whether termination was granted. The fact that the section was not written in this way implies that the return of the compensation is a "possibility" but that there is a legal test, factors, and discretion that needs to be applied in determining whether the compensation <u>should</u> be returned to the landlord.</p><p>I was pleased to argue this position in Board File EAL-92824-20 (Order issued August 31, 2021). The adjudicator did consider the word "may" as it appears in section 73.1 and had this to say:</p><p><i><span style="color: #cc0000;"><span> </span>12. Section 73.1 says the Board “may” order the compensation to be repaid to the landlord. By using permissive language, the legislature anticipated situations where it would be unfair for the tenant to <span> </span>return the money. I see such a situation as where the landlord has done something wrong, as in this case where a mandatory requirement was not met. To order the money back to the landlord when the landlord has not followed the mandatory requirements of the legislation is not holding them accountable, therefore I find it fair and reasonable for the Tenants to retain the compensation.</span></i></p><p>As you can see from this decision, the adjudicator created a legal test around the work "may" and analyzed whether the compensation <u>should</u> be returned based on the conduct of the parties. In this particular case, even though the landlord was unsuccessful in terminating the tenancy, the tenant was not required to return the compensation that was paid.</p><p>It will be interesting to see if the LTB adopts this reasoning in a broader way than the current caselaw reflects. In my opinion, the adjudicator in this case (Ms. Wade), gave a proper interpretation to the word "<i>may</i>" as it is applied in this section of the Act.</p><p>Michael K. E. Thiele</p><p><br /></p><p><br /></p>Michael K. E. Thielehttp://www.blogger.com/profile/10247495615982921581noreply@blogger.com0tag:blogger.com,1999:blog-6703393754400182307.post-87192209576111623742023-05-22T10:04:00.010-04:002023-06-12T16:55:34.331-04:00Compensation not paid--Eviction Notice void?<p><br /></p><h1 style="text-align: left;"><b><i><span style="font-size: large;">The automatic dismissal of Landlord & Tenant Board Applications because of Non-Payment of Compensation is <u>changing</u> (has changed!)</span></i></b></h1><p><span style="font-size: medium;">For the last several years the Landlord and Tenant Board has adopted an interpretation of the Residential Tenancies Act that is utterly unforgiving to landlords who fail to pay the compensation due to tenants upon the serving of an N12 or N13 Notice of Termination. The Ontario Landlord & Tenant Board has been dismissing applications to terminate and evict where the landlord could not demonstrate that the compensation owed to the tenant was paid before the termination date in the N12 or N13 form. Is this changing? It seems so!</span></p><h3 style="text-align: left;"><i><span style="font-size: large;">Firstly, what compensation?</span></i></h3><p><span style="font-size: medium;">There are very few non-fault grounds for termination of a tenancy in the <i>Residential Tenancies Act</i>. This is by design and intentional and the fact of there being very few no fault grounds of termination is what underpins the <i>security of tenure</i> that tenants have in Ontario. Far more than in many (if not most) other jurisdictions, a tenancy in Ontario, once started, is by design extremely difficult to terminate if the tenant fulfills their obligations under the tenancy agreement and <i>Residential Tenancies Act</i>. Basically, if a tenant pays the rent, doesn't damage the place, commits no illegal act and doesn't impair safety, they can effectively stay in a rental unit "forever". An Ontario lease never, in practice, expires. A fixed term may end (i.e. one year or such other agreed term), but after that term the law renews the tenancy on a month to month basis indefinitely--whether the landlord likes it or not. Again, this is intentional on the part of the legislature.</span></p><p><span style="font-size: medium;">The major exceptions to the "forever" tenancy is a termination for landlord's own use, for purchaser's own use, for demolition, conversion, or repair. And of these, only the landlord's own use, purchaser's own use, demolition and conversion lead to permanent termination where the tenant has no right to return to the unit. These grounds for termination are reflected in the Notice of Termination Forms (available on the <a href="https://tribunalsontario.ca/ltb/" target="_blank">LTB website</a>) N12 and N13.</span></p><p><span style="font-size: medium;">These grounds/forms, because they represent the only basis to lawfully terminate the <i>forever tenancy</i>, have done some double/triple duty to terminate tenancies for reasons <u>other than</u> what they are intended for. Examples, if the rent is low and the landlord wants to re-rent for a higher rent the N12 Form was/is often used to terminate, evict, and then re-rent to a new tenant at a higher market rent. If a landlord simply doesn't like a tenant, or the tenant is too demanding or requiring the landlord to do too many repairs the landlord might retaliate with an N12 to evict and re-rent to a tenant who is less demanding. The N13 might be used to evict for "repairs" (often referred to as reno-viction) with the intent to upgrade the unit and put it back on the market at a higher rent (there is some nuance to the N13 not described here but be aware that a tenant has a right to move back in after repairs).</span></p><p><span style="font-size: medium;">These grounds/forms are ripe for abuse as they represent the only way to terminate a tenancy for no fault grounds. The fact that some landlords use N12's and N13's improperly (i.e. wrongly and illegally) is not a secret---everyone knows. It is such common knowledge that the legislature has increasingly made it more difficult and more costly for landlords to use the N12 and the N13 (i.e. barriers to use).</span></p><p><span style="font-size: medium;">One of the barriers to use of the N12 and N13 is that the legislature requires a landlord to pay a tenant compensation equal to one month's rent prior to the termination date in the N12/N13 form. You may characterize the compensation as you wish, but for sure it was a step towards making landlords think twice about serving N12's for improper purposes.</span></p><p><span style="font-size: medium;">The compensation requirements for these notices of termination (N12/N13*) are set out in sections 48.1, 49.1, 52, 54, and 55, <i>Residential Tenancies Act.</i> [*note that I have (above) made reference to compensation equal to one month's rent--in fact, on N13's it is possible for the compensation requirement to be up to 3 months or zero depending on the circumstances]</span></p><p><span style="font-size: medium;">Section 55.1 <i>Residential Tenancies Act </i>states that if the landlord is required to compensate the tenant under the above sections then the compensation shall be paid no later than the termination date.</span></p><h3 style="text-align: left;"><i><span style="font-size: large;">Fail to Pay or Pay late?</span></i></h3><p><span style="font-size: medium;">So what is the termination date and what is late? Both the N12 and the N13 must indicate a termination date on the Form. For an N12 it is a minimum of 60 days after service with the end date being on the last day of a rental period (typically the end of a month). For an N13 the termination date is a minimum of 120 days after service with the end date being on the last day of a rental period and again typically on the last day of a month. When we talk about the compensation being required to be paid before the termination date--it is the 60 day date or the 120 day date indicated on the N12/N13 that we are talking about.</span></p><p><span style="font-size: medium;">Beginning with the ZOOM LTB years the LTB shifted its perspective on what it meant if the compensation required by section 55.1 <i>RTA</i> was not paid on time (before the termination date). It was a profound change and one that I thought was weirdly coordinated by all of the adjudicators hearing cases--so much so that one could be excused for thinking that adjudicators were being directed on how to decide cases involving compensation (a fettering of discretion if you will). Anyway, in Ottawa at least, we had for years the experience at an LTB hearing that if a landlord had not paid the compensation on the date of the hearing (but after the termination date in the Notice of Termination) that an adjudicator as almost a matter of course would make the termination and eviction Order conditional on the landlord paying the tenant the compensation that was owed. Frankly, that made a lot of sense as the tenant was still in possession and the aim of the compensation being paid was still met with such a conditional Order.</span></p><p><span style="font-size: medium;">But the sensical thing changed and the LTB for the last several years has been strictly interpreting section 55.1 such that if the compensation was <u>not</u> paid then an eviction application could not be successful and it would be dismissed. There was no leeway, no rationalizing, no recognition of intention, error, or lack of prejudice. It was a bright red line--no compensation paid--case dismissed.</span></p><p><span style="font-size: medium;">We perhaps had some softening of the bright red-line when some LTB adjudicators decided that compensation could be paid by waiver of rent due or rent that was in arrears. So long as the waiver was clear and unequivocal the landlord did not have to go out of pocket directly. Compensation paid by waiver of rent past due or future rent (so long as it was before the termination date) could satisfy the compensation requirement under section 55.1 <i>RTA</i>. Somewhat interestingly, while my opinion is that there was always legal flexibility to allow the compensation to be paid at any time before actual eviction Order being made, I never quite understood how adjudicators could equate the waiver of a purported debt or even a disputed debt with actual compensation. Doing so seemed to defeat the purpose of the compensation requirement on a fundamental level.</span></p><h3 style="text-align: left;"><span style="font-size: large;"><i>CASE DISMISSED?</i></span></h3><p><span style="font-size: medium;">For the last several years it was quite common to see eviction applications that had been pending for untold months and years to be dismissed because the landlord failed to pay compensation months if not a year or more before (while the tenant remained in possession). Many thought this was unfair, seemingly arbitrary and an unnecessarily rigid application of the law. But that's the thing with "<i>bright red lines"</i>.</span></p><h3 style="text-align: left;"><span style="font-size: large;"><i>CHANGE!? New appellate authority</i></span></h3><p><span style="font-size: medium;">The Divisional Court has re-introduced some flexibility and sanity (I think) to the compensation requirement issue. In the case of <a href="https://www.canlii.org/en/on/onscdc/doc/2023/2023onsc2859/2023onsc2859.html" target="_blank">6150 Yonge GP Inc. v. Boxma</a> , released May 18, 2023, the panel of the Court erased the bright red line.</span></p><p><span style="font-size: medium;">In this case a landlord had served an N13 for purposes of demolition of a rental unit. The landlord gave the tenant a cheque for the compensation prior to the termination date. The tenant did not cash the cheque prior to the termination date and did not move out. The landlord applied to the LTB for an eviction Order. The hearing to terminate and evict was held a few months after the termination date in the N13 (termination date Dec 31, 2021--Eviction Hearing February 2022). The tenant attempted to cash the cheque before the eviction hearing but after the termination date.</span></p><p><span style="font-size: medium;">The cheque provided to the tenant went NSF (non-sufficient funds) and in the common vernacular "bounced". The Landlord and Tenant Board did not dismiss the application. In these circumstances the LTB allowed the landlord to provide a replacement cheque (by Order) and proceeded to terminate the tenancy. The tenant appealed to the Divisional Court.</span></p><p><span style="font-size: medium;">The Court reviewed the section 55.1 <i>RTA</i> requirement. It also reviewed the authority, jurisdiction, and discretion afforded to the LTB under section <a href="https://www.canlii.org/en/on/laws/stat/so-2006-c-17/latest/so-2006-c-17.html#sec190subsec2_smooth" target="_blank">190(2) <i>RTA</i></a>. This section authorizes the extension of time with respect to any matter other than prescribed requirements. The Court notes that the time to pay the compensation is not a prescribed time period (i.e. not in regulations).</span></p><p><span style="font-size: medium;">The Court did look at the rationale for extending the time period and noted the exercise of discretion in the particular circumstances of the case and analyzed what the adjudicator did and why. It was held to be reasonable---and in fact <i><b>"entirely understandable"</b></i> that the adjudicator would exercise his discretion in the way that he did. Using the phrase "entirely understandable" I think, and it should, put to bed the bright red line forever and ever.</span></p><p><span style="font-size: medium;">Of course, the Court did not abolish <a href="https://www.canlii.org/en/on/laws/stat/so-2006-c-17/latest/so-2006-c-17.html#sec55.1" target="_blank">section 55.1</a> and read it into a meaningless oblivion. There is still a requirement to pay compensation by the termination date. The failure to pay can quite reasonably lead to a dismissal of an application. Imagine a circumstance where a tenant begs for the compensation to make first and last month rent at a new place, or to pay for moving expenses, and the landlord simply refuses and then later begs forgiveness of the LTB when the tenant does not move out and he is looking for an eviction Order. One would not expect an adjudicator to exercise discretion for that particular landlord. Hence, context will matter.</span></p><p><span style="font-size: medium;">I think that it is clear, again, that an LTB adjudicator has discretion to allow the payment of the compensation owing after the termination date in an N12/N13 and still terminate a tenancy. The question is what will be the factors that go into getting an adjudicator to exercise their discretion. Will a landlord's ignorance with apology and offer to pay be enough to excuse a non-payment in accordance with section 55.1? Will a refusal to pay when compensation is demanded by a tenant who needs or wants the compensation shut the door hard on discretion? I imagine that in time there will be common circumstances that will elicit the exercise of discretion. However, I imagine too that this might be unsatisfactory as it suggests that the exercise of discretion may become unprincipled and really just depend on bias' (for or against) and perhaps <i>likeability</i> of the parties.</span></p><p><span style="font-size: medium;">I would suggest, instead, that a test evolve on this issue that looks at the prejudice caused by the failure to pay. Did the non-payment directly impact the tenant's ability to look for a new place to live? Did the lack of these funds make moving such a hardship that it was unrealistic for the tenant to even try to move? Did the tenant lose an apartment because they didn't have the money to pay the first and last that the compensation could have covered? If so, then looking at the prejudice to the tenant might be grounds to argue that discretion should not be exercised. However, there could be other circumstances from a principled basis that suggest discretion should be exercised. Imagine a landlord who was simply unaware, that if a simple request had been made that the compensation would have been forthcoming, that the compensation was perhaps late by days and the hearing many many months afterwards. Perhaps in these circumstances where the tenant has not suffered due to the late payment or non-payment of the compensation and it is perhaps very clear that the landlord is sincere in the application and the purpose of the N12/N13 is being severely prejudiced then discretion should be exercised. However you look at it, I suggest that the basis for the exercise of discretion should have an objective basis and be consistently applied so that landlords and tenants can have a predictable outcome at hearings and paralegals and lawyers can advise their clients accordingly.</span></p><p><br /></p><p>Michael K.E. Thiele</p><p>www.ottawalawyers.com</p>Michael K. E. Thielehttp://www.blogger.com/profile/10247495615982921581noreply@blogger.com2tag:blogger.com,1999:blog-6703393754400182307.post-8312252918083707242023-05-02T16:21:00.009-04:002023-05-03T14:17:17.803-04:00Hearing de novo at the Landlord and Tenant Board. What does this mean?<p><b><span style="font-size: medium;"><br />STARTING FROM SCRATCH (de novo) after all the work was <u>done!</u></span></b></p><p><span style="font-size: large; text-align: justify;">As we all know, the Ontario Landlord and Tenant Board is having a difficult time in fulfilling its statutory mandate. Where the fault lies, how it can be fixed, or frankly if this version of the Landlord and Tenant Board can ever be fixed is a fair question that won’t be answered here.</span></p><p style="text-align: justify;"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjx51D3AxrVUNS5Z84DERBkT5jlcQ9co11OmpCNPe7aJqK_GmpyozmJAT_x3w9C8FFErpaWqbdXz-ba8WTFAHK2pxZu0r8CyMpA_epDwEwuq_Zg9hPrrXo3Xjw1IIH-Q5spxEM1IF7LHJEMnPYx_aYZT9jpW-nHsqNsV2wjz78dUBRvZUE1INbujC5ByA/s2385/Tribunals%20Ontario.jpg" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="1252" data-original-width="2385" height="168" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjx51D3AxrVUNS5Z84DERBkT5jlcQ9co11OmpCNPe7aJqK_GmpyozmJAT_x3w9C8FFErpaWqbdXz-ba8WTFAHK2pxZu0r8CyMpA_epDwEwuq_Zg9hPrrXo3Xjw1IIH-Q5spxEM1IF7LHJEMnPYx_aYZT9jpW-nHsqNsV2wjz78dUBRvZUE1INbujC5ByA/w320-h168/Tribunals%20Ontario.jpg" title="Notice of De Novo Hearing" width="320" /></a></div><span style="font-size: medium;">However, the Landlord and Tenant Board’s issues play out in ways that are perhaps unexpected but also not unpredictable. One of the newer and stranger things that is happening is the Hearing de novo. This little article will explain what this kind of notice is, what it means, and what you might want to do or say about it.</span><p></p><p style="text-align: justify;"><span style="font-size: medium;">A hearing de novo is what happens when the Landlord and Tenant Board <i>decides</i> that it is incapable or unable to continue with, follow through, complete an application that has already started, or render a decision (i.e. write an Order). Currently (early 2023) (and rather frequently) adjudicators are resigning or not being re-appointed after their terms expire. As this occurs they are failing to complete the applications that have been assigned to them or that they are seized with. In practical terms this means that hearings have already started and one or more days of evidence has been heard but not completed. Or, it also may mean that a hearing started, the evidence was heard, and the only thing remaining was for an Order to be issued.</span></p><p style="text-align: justify;"><span style="font-size: medium;">Landlords and Tenants instead of receiving an Order are receiving a <i>Notice of Hearing de novo</i> directing them to attend a new start from scratch hearing. The only explanation for this Notice of Hearing de novo is on an enclosed endorsement form where a vice-chair explains that the member resigned or was not re-appointed and was therefore unable to complete the matter. The endorsement goes on to apologize and further promises to schedule the matter on an expedited basis.</span></p><p style="text-align: justify;"><span style="font-size: medium;">Receiving a <i>hearing de novo </i>direction can be very upsetting for one or both of the parties. A significant amount of effort and expense will have gone into the work already done. Sometimes, it is a miracle to get cooperation from neighbouring tenants or other witnesses and losing the value of the effort that went into getting the witnesses to attend the original hearing is extraordinarily prejudicial. Some witnesses risk their own safety and fear retribution for testifying and a hearing de novo discounts that risk and basically requires the witness to do it again. Query if a party is able to even lead the same evidence or find the same witnesses to testify. This morning I was on a ZOOM hearing where a tenant was arguing against a <i>hearing de novo</i> because the matter was two years old and the evidence had been highly traumatic when it was originally given two years ago! </span></p><p style="text-align: justify;"><span style="font-size: medium;">Are there options when an adjudicator resigns or isn’t re-appointed and cases that they have started remain outstanding? Or is it the case that the LTB’s choice of proceeding by <i>hearing de novo</i> is automatically the only option?</span></p><p style="text-align: justify;"><span style="font-size: medium;">In fact, there are options short of starting from scratch and throwing out all of the work that has been done. To get a sense of a “big case” where the hearing de novo process was challenged it is worthwhile to review <b>Faruk v. The Landlord and Tenant Board</b>, <a href="https://www.canlii.org/en/on/onscdc/doc/2023/2023onsc2191/2023onsc2191.html?autocompleteStr=faruk&autocompletePos=1" target="_blank">2023 ONSC 2191 (CanLII)</a>. There, the Divisional Court considers the effort of the parties in the proceedings and options short of a hearing de novo.</span></p><p style="text-align: justify;"><span style="font-size: medium;">In another case, EAT-77647-18, an adjudicator resigned after all of the evidence had been heard and submissions completed after a lengthy hearing. The Landlord and Tenant Board directed the case back to a <i>hearing de novo</i>. There, the parties jointly submitted that the original adjudicator should complete the case because she was seized and relied on section 4.3 of the Statutory Powers Procedure Act (SPPA) which provides that “if the term of office of a member of a tribunal who has participated in a hearing expires before a decision is given, the term shall be deemed to continue, but only for the purpose of participating in the decision and for no other purpose”. That section would seem to be the necessary authority to at least give an adjudicator who has resigned or not been re-appointed the authority to continue (and presumably be paid) to finish a matter.</span></p><p style="text-align: justify;"><span style="font-size: medium;">Unfortunately, <a href="https://www.canlii.org/en/on/laws/stat/rso-1990-c-s22/latest/rso-1990-c-s22.html?autocompleteStr=statu&autocompletePos=1#sec4.3" target="_blank">section 4.3 of the SPPA </a>is not the complete answer as the RTA contemplates this section at section <a href="https://www.canlii.org/en/on/laws/stat/so-2006-c-17/latest/so-2006-c-17.html?autocompleteStr=residen&autocompletePos=1&searchUrlHash=AAAAAQAQInRlcm0gb2Ygb2ZmaWNlIgAAAAAB&offset=135947.328125&highlightEdited=true#sec173" target="_blank">173 RTA</a> and qualifies the scope of section 4.3 SPPA by limiting the authority to continue to a period of 4 weeks. Query, if an adjudicator who resigns (but is willing to finish what is started) is entitled to continue to finish matters for the remaining period of the term of their appointment plus 4 weeks.</span></p><p style="text-align: justify;"><span style="font-size: medium;">In EAT-77647-18, the parties further jointly submitted that if the adjudicator who heard the case was unable to write the decision that the LTB should appoint another adjudicator to listen to the recording, review the evidence, and if necessary pose questions to the parties and then proceed to make an Order in place of the adjudicator who actually heard the case. </span></p><p style="text-align: justify;"><span style="font-size: medium;">The LTB accepted that submission and decided the case in this way (by reviewing the materials filed and the recording of the evidence).</span></p><p style="text-align: justify;"><span style="font-size: medium;">It is, in my view, concerning that the LTB is deciding to proceed to a <i>de novo hearing</i> without asking the parties their position. The LTB appears to be issuing the Notice of Hearing de novo without considering the impact on the parties or without determining whether a hearing de novo is actually necessary or appropriate. As an example, last week I had another hearing de novo which was scheduled after the adjudicator who heard the case and resigned did not issue a <u><b>consent</b></u> Order. The terms of the consent had been submitted to the adjudicator and all that was needed was to record the terms in an Order. Why was that sent to a <i>Hearing de novo</i> as opposed to another adjudicator simply stepping in and writing the Order that was asked for on consent?</span></p><p style="text-align: justify;"><span style="font-size: medium;">Hearings de novo are also causing some ethical challenges. On another matter I was appearing for a landlord on a hearing de novo where he had previously agreed to a termination of the tenancy with a substantial section 82 rent abatement. The tenant held the leverage at the <i>original</i> hearing as the landlord could not expect to ever get his rent arrears yet the tenant continued to occupy the rental unit. At the original hearing it appeared unlikely that the matter would get reached that day and a further lengthy adjournment was likely. At this stage the landlord was worried about future rents that would remain unpaid by the Judgment proof tenant. Because of this, the landlord agreed to a significant rent abatement to obtain a consent termination and eviction order for 30 days after the hearing. Given the circumstances at that time, the terms made sense.</span></p><p style="text-align: justify;"><span style="font-size: medium;">Although the LTB received the consent order terms it appeared to have lost the file for some time and hence did not issue the Order. Fortunately for the landlord, the tenant upheld the terms of the consent without actually ever receiving the Order and moved out in accordance with the consent terms. The landlord took possession of the unit when the tenant vacated. Then weeks after the tenant vacated, the LTB issued a Notice of Hearing de novo instead of making an order in accordance with the consent terms.</span></p><p style="text-align: justify;"><span style="font-size: medium;">What made this hearing de novo interesting is that the landlord was intent on pursuing the rent arrears that were owed (less the abatement given). However, now that the landlord was in possession of the rental unit, the leverage that the tenants had at the original hearing (i.e. possession of the unit) had evaporated. The landlord, at the hearing de novo, no longer needed to “make a deal” to get the rental unit back and could choose to resile from the abatement that he had previously agreed to. Or could he?</span></p><p style="text-align: justify;"><span style="font-size: medium;">In my view, the hearing de novo is not an opportunity to resile from a agreement previously made to settle an application. While the LTB notice does indicate that the application is being considered afresh, it is my view that such a direction from the LTB does not over-ride an agreement made between the parties. The logic derives from the principle that an “agreement to settle a claim is a contract” (see Canadian Tourism Human Resource Council v. Meadow Wood Communication Group Inc., 1998 CarswellOnt 1114 at para 28).</span></p>Michael K. E. Thielehttp://www.blogger.com/profile/10247495615982921581noreply@blogger.com0tag:blogger.com,1999:blog-6703393754400182307.post-79672027425642102902023-03-20T15:47:00.000-04:002023-03-20T16:16:00.382-04:00Are there Time Limits when tenants apply for Interest Owing on their Last Month's Rent Deposit?<p><span style="font-size: medium;">How many years of unpaid interest can a tenant claim on the Last Month’s Rent Deposit? The Ontario Landlord and Tenant Board's T1 Form allows a tenant to apply for LMR interest arrears. That form implies a time limit of 1 year from the date the money was due to the tenant and not paid by the landlord.</span></p><p><span style="font-size: medium;">The question for this article is to explore if a tenant can require a landlord to pay more than one year of interest owed if the landlord has failed to pay the interest as required under the <a href="https://canlii.ca/t/55fnc" target="_blank">Residential Tenancies Act</a>. The issue, and why it is even a question, is that the Residential Tenancies Act is rather thorough in limiting the time in which a tenant can bring an application against a landlord. The standard time limit (or perhaps I should say the most common time limit) that the Residential Tenancies Act imposes on tenants is one year from the date of the incident or breach by the landlord–meaning a tenant needs to file an application to the Landlord and Tenant Board within the one year following the incident/breach failing which they have very likely lost the right to file an application for any relief or compensation.</span></p><p><span style="font-size: medium;">How does this question matter for tenants? It is extraordinarily common for landlords to require a tenant to pay a last month’s rent deposit prior to the tenant entering into possession of the rental unit. The Last Month’s Rent (LMR) deposit is legally collected and can not exceed one month’s rent as per section <a href="https://www.canlii.org/en/on/laws/stat/so-2006-c-17/latest/so-2006-c-17.html?autocompleteStr=res&autocompletePos=1&searchUrlHash=AAAAAQARInRpbWUgbGltaXRhdGlvbiIAAAAAAQ&offset=0&highlightEdited=true#sec106subsec1" target="_blank">105 & 106 Residential Tenancies Ac</a>t.</span></p><p><span style="font-size: medium;">The LMR is mandatorily held by the landlord to be applied to the last month of the tenant’s tenancy. It is not a slush fund to be applied to ongoing rent and refurnished in subsequent months. It may only be applied to the last month of the tenancy. Note, this does not mean the last month of a fixed term lease but instead the actual last month of the tenancy. In Ontario a residential lease continues automatically on a month to month basis after the expiry of the fixed term lease. Hence, the LMR continues to be held, even after the expiry of the fixed term lease into the period of the month to month lease. Only when the tenancy agreement is finally and ultimately terminated does the LMR get applied.</span></p><p><span style="font-size: medium;">It has been a feature of Ontario Residential Tenancy law since January 1, 1970, that a landlord is only permitted to require a security deposit in the form of a last month’s rent deposit. From January 1, 1970, a rent deposit (equal to no more than one month’s rent) that was collected by the landlord earned interest at the rate of 6% per annum and had to be paid to the tenant annually. Prior to January 1, 1970, Ontario law allowed landlord’s to require other deposits from tenants including the most common type of security deposit for damages. After January 1, 1970, it became illegal to collect damage deposits from Ontario residential tenants covered by the various residential tenancies laws to the present day (year 2023) under the Residential Tenancies Act.</span></p><p><span style="font-size: medium;">The fact that a landlord is required to pay a tenant interest on the LMR (security deposit) does not mean that the deposit is actually ever paid. Many years of a tenancy often go by during which a landlord simply never pays and the tenants forget (or don’t know) to ask for the interest money owed to them. So a little math to put the interest question in context:</span></p><p><span style="font-size: medium;"><br /></span></p><p><b><span style="font-size: medium;">YEAR<span style="white-space: pre;"> </span>AMOUNT of RENT DEPOSIT <span style="white-space: pre;"> </span>INTEREST OWED</span></b></p><p><span style="font-size: medium;"><br /></span></p><p><span style="font-size: medium;">2019<span style="white-space: pre;"> </span>$1250.00<span style="white-space: pre;"> <span> </span><span> </span><span> </span><span> </span><span> </span><span> </span></span>$22.50<span style="white-space: pre;"> </span></span></p><p><span style="font-size: medium;">2020<span style="white-space: pre;"> </span>$1250.00<span style="white-space: pre;"> <span> </span><span> </span><span> </span><span> </span><span> </span><span> </span></span>$27.50</span></p><p><span style="font-size: medium;">2021<span style="white-space: pre;"> </span>$1250.00<span style="white-space: pre;"> <span> </span><span> </span><span> </span><span> </span><span> </span><span> </span></span>COVID YEAR–no interest</span></p><p><span style="font-size: medium;">2022<span style="white-space: pre;"> </span>$1250.00<span style="white-space: pre;"> <span> </span><span> </span><span> </span><span> </span><span> </span><span> </span></span>$15.00</span></p><p><span style="font-size: medium;"><br /></span></p><p><span style="font-size: medium;"><b>TOTAL OWED to tenant</b><span style="white-space: pre;"> <span> </span><span> </span><span> </span><span> </span></span>$65.00</span></p><p><span style="font-size: medium;"><br /></span></p><p><span style="font-size: medium;">So, you can see that in a tenancy that is 4 years in length (and ongoing) a tenant has earned $65.00 in interest. The interest calculation for each year is a simple interest calculation and the percentage used is the Annual Guideline Interest amount published annually (this is the legal percentage amount that the Ontario Government allows a landlord to increase rents for units that are not otherwise exempted from rent control).</span></p><p><span style="font-size: medium;">If a tenant hasn’t demanded payment can how many years of rent arrears interest can they claim? Suppose for the purposes of our illustration that a tenant has discovered on March 20, 2023, that they haven’t been paid any LMR interest since their tenancy began on January 1, 2019. Does the general one year time limit apply? If so, arguably the tenant’s claim is limited to the interest of $15.00 only—because this is the amount that became payable within the past 12 months. If a general one year time limit does not apply, then the full amount of $65.00 is payable to the tenant regardless of when the interest is demanded or deducted from future rent.</span></p><p><span style="font-size: medium;">Below I have listed the various time limitations and references to various sections of the RTA that establish the time limits on tenant applications. The time limitation section that seems most likely to apply is that in respect of money illegally collected or retained by a landlord under <a href="https://www.canlii.org/en/on/laws/stat/so-2006-c-17/latest/so-2006-c-17.html?autocompleteStr=res&autocompletePos=1&searchUrlHash=AAAAAQARInRpbWUgbGltaXRhdGlvbiIAAAAAAQ&offset=0&highlightEdited=true#sec135subsec1" target="_blank">section 135</a>. That section allows a tenant to apply for the landlord to pay any illegally retained or collected money. One may be forgiven for thinking that a landlord is illegally retaining money when they breach the mandatory requirement (section 106(6) RTA) to pay interest, annually, to the tenant. Further, the failure to pay interest is actually an offence (section 234(e)) under the RTA and therefore it would seem to clearly be an illegal action to which section 135 RTA would apply.</span></p><p><span style="font-size: medium;">The Application form that tenants use for a rebate of money owed to them by a landlord is the T1 Application. The current version of the T1 Application and the Instructions on the LTB website make no reference to the <a href="https://www.canlii.org/en/on/laws/stat/so-2006-c-17/latest/so-2006-c-17.html?autocompleteStr=res&autocompletePos=1&searchUrlHash=AAAAAQARInRpbWUgbGltaXRhdGlvbiIAAAAAAQ&offset=0&highlightEdited=true#sec135subsec1" target="_blank">section 135(4) RTA</a> time limitation of one year (even though it is clearly provided for in the statute). It is clear that the T1 Application clearly is the contemplated form under section 135. Interestingly, it is the T1 Form that provides for a mechanism to claim from a landlord the LMR interest owing (it is Reason 5 T1 Form). Does it follow then that there is a 1 year time limit on an application for LMR interest to be paid to a tenant?</span></p><p><span style="font-size: medium;">The answer it appears may be found in an appellate authority–and the answer is “no”. A tenant is entitled to the entirety of interest owed whether or not an application is brought within 1 year. The Divisional Court in <a href="https://www.canlii.org/en/on/onscdc/doc/2005/2005canlii36461/2005canlii36461.html?autocompleteStr=626114&autocompletePos=1" target="_blank">626114 & 626115 Ontario Ltd. v. Tirado, 2005 CanLII 35461 (ON SCDC</a>), determined that the one year limitation period as provided in the Tenant Protection Act did not apply. [the section remains the same in the current RTA]. The Ontario Landlord and Tenant Board have followed this appellate authority under the current Residential Tenancies Act in <a href="https://www.canlii.org/en/on/onltb/doc/2022/2022canlii80924/2022canlii80924.html?searchUrlHash=AAAAAAAAAAEAGzIwMDUgQ2FuTElJIDM2NDYxIChPTiBTQ0RDKQAAAAEAEC8yMDA1b25zY2RjMTAxOTkB" target="_blank">D.D. Acquisitions Partnership v. Savage</a>, 2022 CanLII 80924 (ON LTB).</span></p><p><span style="font-size: medium;">What is interesting about the Tirado decision is that the Court recognizes that a tenant may deduct multiple years of interest owed (ignoring the 1 year time limit) when the tenant is deducting the interest from a future rent payment that is due to the landlord. That isn’t quite the same, however, as applying to the LTB for an Order requiring the landlord to pay the money when (for example) a tenancy has ended an no more future rent will be paid.</span></p><p><span style="font-size: medium;">The Court in Tirado does seem to recognize the limitation problem on application (using a T1 under section 135) when it approves of reasoning in another Ontario Rental Housing Tribunal case [Hash v. Retirement Life Communities, [2000] O.R.H.T.D. No. 12] wherein the Tribunal held that the one year limitation period should not apply to interest payments. How that reasoning overcomes the provision of section 135 remains unclear. Nevertheless, the weight of the appellate authority now is that a tenant may apply for the entirety of LMR interest owed irrespective of the time limit in section 135 RTA. </span></p><p><span style="font-size: medium;"><br /></span></p><p><i><b><span style="font-size: medium;">VARIOUS TIME LIMITATION SECTIONS UNDER THE RTA FOR TENANT APPLICATIONS</span></b></i></p><p><span style="font-size: medium;">Tenant applications against landlords at the Ontario Landlord and Tenant Board (under the Residential Tenancies Act) are generally time limited to one year. Tenant’s Rights (T2) and Tenants’ Maintenance Applications (T6) are prescribed/limited by section 29(2) RTA to one year. A bad faith application is time limited to one year by section 57(2) RTA. A denial of first refusal rights (under an N13) attracts a 2 year limitation at section 57.1 RTA. Unreasonable denial of sublet or assignment applications are time limited to 1 year in section 98. Evicting an over-holding sub-tenant requires action within 60 days after the end of the sub-tenancy (section 101(2) RTA). An application respecting a rent increase agreement that is breached attracts a 2 year time limit in section 122(2) RTA. An application respecting the reduction or discontinuance of a service or facility as a one year time limit (section 130(5) RTA). An application to recover money illegally collected or retained, which includes the compensation obligation on N12's and N13's, is limited to one year after the money was collected or retained section 135(4) RTA. </span></p>Michael K. E. Thielehttp://www.blogger.com/profile/10247495615982921581noreply@blogger.com4tag:blogger.com,1999:blog-6703393754400182307.post-1636962064078289232023-03-18T19:25:00.006-04:002023-03-22T14:47:55.065-04:00Illegal Acts and Tenants Committing Crime: Easy or tough to evict?<p><br /> </p><p><span face="Calibri, sans-serif"><b><i>ILLEGAL ACTIVITY BY TENANTS does not obviously mean eviction. There are many defences and relief from eviction is possible and even likely. Examples given and discussed.</i></b></span></p><p><span face="Calibri, sans-serif">Tenants committing crime or other illegal acts.</span><span face="Calibri, sans-serif"> </span><span face="Calibri, sans-serif"> </span><span face="Calibri, sans-serif">One might think if a tenant is proven to have committed crime in the rental unit or in the residential complex that it would be a rather straightforward termination and eviction of the tenant.</span><span face="Calibri, sans-serif"> </span><span face="Calibri, sans-serif"> </span><span face="Calibri, sans-serif">Is there much to talk about even?</span><span face="Calibri, sans-serif"> </span><span face="Calibri, sans-serif"> </span><span face="Calibri, sans-serif">In fact, like most things involving the <i><a href="https://canlii.ca/t/55fnc" target="_blank">Residential Tenancies Act</a></i> the devil is in the details and nothing is ever obvious no matter what the circumstances might look like.</span></p><style class="WebKit-mso-list-quirks-style">
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</style><p class="MsoNormal" style="font-size: medium;"><o:p></o:p></p><p class="MsoNormal" style="font-size: medium;"><o:p> </o:p></p><p class="MsoNormal" style="font-size: medium;">I thought in discussing this topic that I would go over examples of several cases and give an overview of the allegations and then the outcome of the case at the Landlord and Tenant Board. Having examples and understanding of what happens is perhaps the most useful way to get an understanding about “illegal activity” and what the Landlord and Tenant Board is likely to do in any given case. This is a useful perspective for both tenant & landlord regardless of which side of the argument that you are on. If you are the landlord, you will discover that very serious illegal activity can still result in the Landlord and Tenant Board granting relief or refusing eviction. That same knowledge is very useful if you are a tenant and find yourself on the wrong side of an Illegal Act eviction application. Just because the facts are horrible does not mean that the tenancy will be terminated.<o:p></o:p></p><p class="MsoNormal" style="font-size: medium;"><o:p> </o:p></p><p class="MsoNormal" style="font-size: medium;">Before jumping into the facts of some cases, let me just set out what a Notice of Termination for Illegal Act needs to set out and what needs to be proven at a hearing to terminate a tenancy and evict a tenant who is alleged to have committed such acts.<o:p></o:p></p><p class="MsoNormal" style="font-size: medium;"><o:p> </o:p></p><p class="MsoNormal" style="font-size: medium;"><table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: left; margin-right: 1em; text-align: left;"><tbody><tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi--mESeBvwOkUrrQAdfiYmxVfKuxCHueKNI7jAwl7Qqo8nvQAaW0NG4ARTMEF9VsXhrZupSdGyTf605C7TwMOSkZVWiaq0u_Afde1N1TdykE2b0YNQBw4z7SR2_xLGr8eHoliNZwsq5e26TZsel9vh7DlEpFO5ZjZQiFbVJ8gUKbMynIvtttgPx82OtA/s1258/Preston%20Street.jpeg" imageanchor="1" style="clear: left; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" data-original-height="1258" data-original-width="1245" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi--mESeBvwOkUrrQAdfiYmxVfKuxCHueKNI7jAwl7Qqo8nvQAaW0NG4ARTMEF9VsXhrZupSdGyTf605C7TwMOSkZVWiaq0u_Afde1N1TdykE2b0YNQBw4z7SR2_xLGr8eHoliNZwsq5e26TZsel9vh7DlEpFO5ZjZQiFbVJ8gUKbMynIvtttgPx82OtA/s320/Preston%20Street.jpeg" width="317" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;"></td></tr></tbody></table>Firstly, the applicable section of the <a href="https://canlii.ca/t/55fnc" target="_blank">Residential Tenancies Act</a> is <a href="https://www.canlii.org/en/on/laws/stat/so-2006-c-17/latest/so-2006-c-17.html?autocompleteStr=resid&autocompletePos=1#sec61subsec1" target="_blank">section 61</a>. A landlord can serve a Notice of Termination (Form N6) if the tenant or another occupant of the rental unit commits an illegal act or carries on an illegal trade, business or occupation or they permit a person to do so in the rental unit or the rental complex. The section makes a distinction between regular illegal acts and drug trafficking and production offences (note that the distinction is often a source of mistakes in issued N6 Forms). Of note, an “illegal act” does not mean only a “criminal act”, the scope is broader than just the Criminal Code of Canada and in fact, a breach of the Residential Tenancies Act itself can, in some circumstances, constitute an Illegal Act. It is not necessary that there be a criminal charge or even a conviction in relation to the alleged offence. The fact that no conviction is necessary is <i>so important</i> that it is stated explicitly in <a href="https://www.canlii.org/en/on/laws/stat/so-2006-c-17/latest/so-2006-c-17.html?autocompleteStr=resid&autocompletePos=1#sec75" target="_blank">section 75 RTA</a>. The burden of proof is on a <i>balance of probabilities</i> and not the <i>beyond a reasonable doubt</i> standard. This means that even though the allegation may be criminal in nature the landlord has the lower civil burden of proof compared to the criminal standard that only the Crown attorney must prove. This fact allows for the possibility that even if a tenant is charged and acquitted of a criminal code offence a landlord may still succeed on evicting a tenant for that same alleged criminal act (because the burden of proof is lower—and “reasonable doubt” is not the measure).<o:p></o:p></p><p class="MsoNormal" style="font-size: medium;"><o:p> </o:p></p><p class="MsoNormal" style="font-size: medium;">The Illegal act that the tenant commits must occur in the rental unit or in the residential complex. This means that no matter how horrendous or serious the crime might be; if it did not occur in the rental unit or in the residential complex then it can not be the basis for terminating a tenancy. And lastly, and this is a big one, the offence alleged must have the potential to affect the character of the premises or disturb the reasonable enjoyment of the premises by the landlord or other tenants. I note this as a “big one” because it is often forgotten and unexplored by landlords and tenants alike in their evidence—which is a real mistake as the legal test requires this potential to be proven and absent that proof the illegal act eviction application should be dismissed.<o:p></o:p></p><p class="MsoNormal" style="font-size: medium;"><o:p> </o:p></p><p class="MsoNormal" style="font-size: medium;">On that point (potential to affect the character), I recall a case from many years ago where my client was selling a high volume of untaxed tobacco from his rental unit. This was discovered when Police were called to his unit because he had been robbed and assaulted in his apartment (which was entirely unrelated to his tobacco business) and while making sure the burglar was gone they found a chest freezer full of tobacco in a back bedroom. My client was charged under the Excise Tax Act and by how the evidence was catalogued and published in handsome evidence books you’d think the police took down a cartel. Anyway, there was no defence to the tobacco selling and other than my client being a sympathetic character due to health concerns it was hard to imagine how this “illegal act” would not lead to eviction. Then inspiration struck and I remembered the “potential to affect the character” requirement (which by the way is an appellate authority, caselaw derived requirement in <a href="https://www.canlii.org/en/on/onsc/doc/1988/1988canlii4844/1988canlii4844.html?autocompleteStr=swansea%20&autocompletePos=2" target="_blank">Swansea Village Co-op v. Balcerzak</a>, [1988] O.J. No. 84 (Ont. Div. Ct.) . How I used this requirement as a defence was by getting the police officers to testify as to how often they attended the property (numerous times a day) and the kinds of activity for which they were called (prostitution, gang violence, guns, drug trafficking). As crazy as it might seem, the tobacco selling in the context of this particular residential complex was so astonishingly trivial that it couldn’t possibly have the potential to affect the character of the premises in a negative way. I think I was even cheeky enough to suggest that it improved the place. The outcome for my client was as hoped and the tenancy was not terminated (but he was prohibited from selling tobacco in the future). So, whether you are a landlord or tenant, do not discount the “potential to affect the character” piece of the test and try to remember it because it is a caselaw requirement and not reflected in the <i>Residential Tenancies Act</i> itself.<o:p></o:p></p><p class="MsoNormal" style="font-size: medium;"><o:p> </o:p></p><p class="MsoNormal" style="font-size: medium;">So, on with some fact scenarios for you to understand what can happen at the LTB on Illegal Act applications based on Form N6’s.<o:p></o:p></p><p class="MsoNormal" style="font-size: medium;"><o:p> </o:p></p><p class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo1; text-indent: -18pt;"><!--[if !supportLists]-->1.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; line-height: normal;"> </span>A tenant was arrested and charged with possession of crack cocaine and there was sufficient evidence for this finding even though the criminal charge was withdrawn. Police testified that a large number of people would come to the apartment building. The Tribunal held that based on the large number of people coming and going that the tenant’s activities seriously affect the character of the premises. This was over-turned on appeal as an error in law. The proven offence was “possession” and not trafficking, and the adjudicator failed to address the issue of whether one act (the proven allegation) of possession of crack cocaine in the parking lot would affect the character of the premises. The tenancy was maintained when the eviction application was dismissed. </p><p class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo1; text-indent: -18pt;"> <o:p></o:p></p><p class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -18pt;"><!--[if !supportLists]-->2.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; line-height: normal;"> </span>A tenant renting out their rental unit on Air BnB for significantly more than the rent paid by the tenant was breaching the<a href="https://www.canlii.org/en/on/laws/stat/so-2006-c-17/latest/so-2006-c-17.html?autocompleteStr=resi&autocompletePos=1#sec234" target="_blank"> RTA (s. 234)</a>, and this was found to be an illegal act which affected the character of the premises because it gave a transient population access to the residential complex. (Tenancy terminated).<o:p></o:p></p><p class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -18pt;"><br /></p><p class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -18pt;"><!--[if !supportLists]-->3.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; line-height: normal;"> </span><!--[endif]-->A search warrant was issued in the name of the tenant’s brother. The officer testifying (at the LTB) was not present at the search and did not have personal knowledge of where the marijuana and scales were found. The LTB dismissed the application because the landlord did not (or could not) prove that the tenant was aware of her brother’s conduct.<o:p></o:p></p><p class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -18pt;"><br /></p><p class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -18pt;"><!--[if !supportLists]-->4.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; line-height: normal;"> </span>Police told a superintendent that they were removing property from the tenant’s unit as they believed it to be stolen property. The tenant was incarcerated at the time of the hearing. Held: A mere suspicion that an illegal act may have occurred was not sufficient to make out the ground for eviction. Tenancy not terminated.<o:p></o:p></p><p class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -18pt;"><br /></p><p class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -18pt;"><!--[if !supportLists]-->5.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; line-height: normal;"> </span>Elderly tenant’s son uttered threat against janitor in front of contractors while holding an air gun that looked like a real assault rifle. The threatened janitor felt no longer able to live or work in the building and had to move. The son had a brain injury and other disabilities and had to live with his elderly mother who also had disabilities. The LTB found that illegal acts were committed, however, it was satisfied that actual safety was not impaired (because it was an air soft gun) and that relief should be granted because of the negative impacts that eviction would have on the tenant and her son. Tenancy was maintained on the condition that no further illegal acts occur.<o:p></o:p></p><p class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -18pt;"><br /></p><p class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -18pt;"><!--[if !supportLists]-->6.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; line-height: normal;"> </span>The tenant was found with heroin in a taxi and a small amount of crystal meth was found in the rental unit. The tenant pled guilty to possession. The RTA did not apply to the heroin in the taxi because it was not on the residential complex. The tenant explained how the apartment was his first stable housing, that he was almost 2 months sober, and that his apartment was essential to his recovery. Tenancy was maintained on the condition that the tenant have no drugs in the residential complex in the future.<o:p></o:p></p><p class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -18pt;"><br /></p><p class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -18pt;"><!--[if !supportLists]-->7.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; line-height: normal;"> </span>Tenant was convicted of two charges of attempting to lure a child by the internet and a further charge of attempting to expose his genitals to a minor. He was sentenced to four months in jail and 18 months probation. Relief from eviction was granted, his tenancy was not terminated. The reasoning was that he showed remorse, participated in a treatment program, his psychiatrist said he would not re-offend, and that eviction from his home of 15 years would be devastating to his mental health. <b><i>AND</i></b>, the LTB found that there was no evidence of any impact on other tenants since his return to the rental unit 16 months before (remember the importance of leading evidence on the “potential to affect the character” discussed above). Tenancy maintained and continued.<o:p></o:p></p><p class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -18pt;"><br /></p><p class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -18pt;"><!--[if !supportLists]-->8.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; line-height: normal;"> </span>Tenant possessed prescription drugs for trafficking. Although the actual sale (trafficking) of these prescription drugs was away from the residential complex no relief from eviction was granted as this was a large scale drug operation that put other tenants at risk. Tenancy terminated and no relief from eviction.<o:p></o:p></p><p class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -18pt;"><br /></p><p class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -18pt;"><!--[if !supportLists]-->9.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; line-height: normal;"> </span>Subsidized tenant lived in apartment for 22 years. Pled guilty to possession of drugs. This was an isolated incident and eviction was determined to be a disproportionate penalty to the conduct. The Court (1991 case) granted relief from eviction without any conditions.<o:p></o:p></p><p class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -18pt;"><br /></p><p class="MsoListParagraphCxSpLast" style="mso-list: l0 level1 lfo1; text-indent: -18pt;"><!--[if !supportLists]-->10.Tenant with a four year old child, no criminal record, and no previous difficulties with the landlord, had a prohibited weapon and ammunition on the premises. Granted relief and tenancy maintained.<o:p></o:p></p><p class="MsoNormal" style="font-size: medium;"><o:p> </o:p></p><p class="MsoNormal" style="font-size: medium;">There are of course many hundreds more cases involving Illegal Acts so the above is just a sampling. My intention in reciting the facts of the above cases is to demonstrate that some rather serious allegations that are indeed proven will not result in eviction and that some less serious allegations (depending on perspective) can lead to eviction. Whether you are the landlord or tenant or representing the landlord or tenant, the key to the illegal acts (Form N6) termination and L2 application is to have a clear understanding of the illegal act being alleged and what specifically needs to be proven (ex. trafficking or possession are not the same thing). Knowing what needs to be proven if you are the landlord and making sure you have that evidence knowing the essential elements to be proven is critical. If you’re on for the tenant and can point out that the essential elements of the offence have not been proven then you should indeed win---I can't even begin to tell you how many times that I successfully defended tenants where I knew the legal requirements that needed to be proven in relation to the alleged offence and the landlord did not. The shock value of an allegation will not alone win a landlord a case. Further (and remember) knowing that not every illegal act is a basis for eviction and that the offence needs to have the potential to affect the character of the premises is extraordinarily valuable as a defence (and for the landlord to make sure that such evidence is led). See case #7 above to be reminded of how important such evidence is.<o:p></o:p></p><p class="MsoNormal" style="font-size: medium;"><o:p> </o:p></p><p class="MsoNormal" style="font-size: medium;">And lastly, if you are the tenant or representing the tenant, these kinds of cases are not at all destined to be lost even if the facts seem outrageously horrible. <a href="https://www.canlii.org/en/on/laws/stat/so-2006-c-17/latest/so-2006-c-17.html?autocompleteStr=resi&autocompletePos=1#sec83subsec1" target="_blank">Section 83</a> (the discretion section), is extraordinarily powerful and a tenancy can be preserved if you can collect and lead evidence that supports the exercise of such discretion. The LTB is not an eviction machine and preserving a tenancy, if possible, does generally appear to be the objective of the adjudicators deciding these cases. So, take the time to explain life circumstances, treatment, help obtained, and explore and explain why the circumstances are now different and that other tenants in the building have no cause to worry if the tenancy continues. This is hard work—gathering this evidence—and it may be necessary to work with 3<sup>rd</sup> parties to put supports and services in place for tenants or to obtain medical reports to explain personal circumstances that put the incident in a different light. I think, as some of the above cases demonstrate, if you do that work a tenancy can be maintained even if the nature of the alleged Illegal Act makes it seem hopeless.<o:p></o:p></p><p class="MsoNormal" style="font-size: medium;"><o:p> </o:p></p><p class="MsoNormal" style="font-size: medium;">For landlords, don’t be so sure and cocky to think that an ugly allegation will carry the day or rely on the sense that where there is smoke there is fire. The LTB will not just terminate because of suspicion or because it is better to be <i>safe than sorry</i>. It is important to realize that an N6 (Illegal Act) is actually a difficult application to prove and that there are numerous defence strategies. Hence, if you are unsure that you have the ability to prove the essential elements of the offence, are unable to prove that the offence has affected the character of the premises, then it might be better to meet the tenant half way and enter into a mediated consent Order preserving the tenancy but prohibiting certain conduct with a <a href="https://www.canlii.org/en/on/laws/stat/so-2006-c-17/latest/so-2006-c-17.html?autocompleteStr=resi&autocompletePos=1#sec78subsec1" target="_blank">section 78 breach claus</a>e. It is like probation with a penalty only if the activity happens again. The tenant gets a chance and you get an Order that should quiet down the activity at the building.<o:p></o:p></p>Michael K. E. Thielehttp://www.blogger.com/profile/10247495615982921581noreply@blogger.com0tag:blogger.com,1999:blog-6703393754400182307.post-30903544283025929092023-03-14T17:49:00.000-04:002023-03-14T17:49:11.876-04:00When landlords need to referee fighting tenants: What do you do?<p style="text-align: justify;"> </p><p class="MsoNormal" style="text-align: justify;"><span style="font-size: medium;"><i><b>What does a landlord do if tenants complain about each
other? (Noise, music, smoking, shouting, etc.)</b></i><o:p></o:p></span></p>
<p class="MsoNormal" style="text-align: justify;"><span style="font-size: large;">Residential Landlords often find themselves in a peculiar
spot when tenants in different apartments can not get along.</span><span style="font-size: large;"> </span><span style="font-size: large;">While the landlord may have a reasonable
relationship with all of the tenants it is entirely possible that different
tenants do not get along with each other.</span><span style="font-size: large;">
</span><span style="font-size: large;">It may be the fault of one tenant, both tenants, or a little bit the
fault of each.</span><span style="font-size: large;"> </span><span style="font-size: large;">The troubling part is
that the landlord is called upon to be the referee and to “do something” about the
behaviour of one or more tenants.</span><span style="font-size: large;"> </span><span style="font-size: large;">The
trouble, of course, is that the different tenants make different allegations
about each other such that it is difficult to know what is true, what is made
up, and what may be an exaggeration or wrong headed view of what is actually
happening.</span><span style="font-size: large;"> </span></p>
<p class="MsoNormal"><span style="font-size: medium;"></span></p><div class="separator" style="clear: both; text-align: center;"><span style="font-size: medium;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgg3PTp_Q4lOTZxzEImlKjG6V8Gqfan3cnq1a6bviqi57zphjBvlttKAJL2Y4Rd7X0xeYRW-eJuERPjRGNqvTHh5SkeuCM3g-p6FtlAaHl19m1ERp9pjqV-hE6st-WrNT7vU5BQMb2jFqusTOn0LgmxlT_nINE7ZXetTQGMOfOWm5W4c0jixgBKmLvbwA/s1434/Apartments%20Ottawa1.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em; text-align: justify;"><img border="0" data-original-height="1434" data-original-width="882" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgg3PTp_Q4lOTZxzEImlKjG6V8Gqfan3cnq1a6bviqi57zphjBvlttKAJL2Y4Rd7X0xeYRW-eJuERPjRGNqvTHh5SkeuCM3g-p6FtlAaHl19m1ERp9pjqV-hE6st-WrNT7vU5BQMb2jFqusTOn0LgmxlT_nINE7ZXetTQGMOfOWm5W4c0jixgBKmLvbwA/s320/Apartments%20Ottawa1.jpg" width="197" /></a></span></div><div style="text-align: justify;"><span style="font-size: medium;"><br /></span></div><div style="text-align: justify;"><span style="font-size: medium;">Perhaps it would be useful to describe a scenario that I was
recently confronted with. A landlord
client contacted me to advise that they have a duplex with a unit above and one
below. The upstairs tenant was
complaining that the downstairs tenant was treating the backyard like it was
entirely their own backyard and was leaving patio furniture, a gazebo, and a
barbecue out there and then telling the upstairs tenant that they could not use
the backyard. The downstairs tenant was
also leaving her dog loose in the backyard and was failing to pick up after it.</span></div><span style="font-size: medium;"><o:p></o:p></span><p></p>
<p class="MsoNormal" style="text-align: justify;"><span style="font-size: medium;">The downstairs tenant, when approached by the landlord said
that the upstairs tenant was being a nasty person (not the word actually used)
and was only complaining because the downstairs tenant complained about her
smoking in the building and had asked her to stop.<span style="mso-spacerun: yes;"> </span>The downstairs tenant denied telling the
upstairs tenant that they could not use the backyard and that normal use of a
backyard includes leaving yard furniture in the backyard.<span style="mso-spacerun: yes;"> </span>The downstairs tenant said that the dog was
only off leash, in the backyard, when accompanied and that they picked up after
the dog soon afterward and always during the same playtime.<o:p></o:p></span></p>
<p class="MsoNormal" style="text-align: justify;"><span style="font-size: medium;">The upstairs tenant responded to the allegation of smoking
by saying that she has never smoked in the unit and that the smoking issue was
only raised when she tried to go to the backyard to have a cigarette and was
told that she couldn’t.<o:p></o:p></span></p>
<p class="MsoNormal" style="text-align: justify;"><span style="font-size: medium;">The above facts were just the beginning of many months of
complaints received by the landlord from each of the tenants.<span style="mso-spacerun: yes;"> </span>As the landlord tried to speak to each of the
tenants the landlord received more complaints about the other tenant and denials
or explanations about the complaints received.<span style="mso-spacerun: yes;">
</span>Asking the tenants to try to get along was pointless and it seemed like
the interpersonal conflict was escalating with increasing demands from the each
of the tenants to evict the other of the tenants.<o:p></o:p></span></p>
<p class="MsoNormal" style="text-align: justify;"><span style="font-size: medium;">The landlord was tired of trying to referee and was especially
frustrated at trying to find a way to resolve the problems.<span style="mso-spacerun: yes;"> </span>The landlord did not live on the property and
never had any first hand knowledge or evidence of the issues.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></p>
<p class="MsoNormal" style="text-align: justify;"><span style="font-size: medium;">The landlord was looking for advice on what to do and how to
solve the problem of the sniping tenants.<span style="mso-spacerun: yes;">
</span>The problem is real because the landlord does have a duty to ensure that
all of the tenants have quiet enjoyment of the property.<span style="mso-spacerun: yes;"> </span>This is an implied term into every residential
lease in Ontario.<span style="mso-spacerun: yes;"> </span>The <a href="https://canlii.ca/t/55fnc" target="_blank">ResidentialTenancies Act</a> (the statute that sets out the law respecting residential
tenancies) refers to “quiet enjoyment” as “reasonable enjoyment” and <a href="https://www.canlii.org/en/on/laws/stat/so-2006-c-17/latest/so-2006-c-17.html?autocompleteStr=resi&autocompletePos=1#sec22" target="_blank">section 22</a>
of the Residential Tenancies Act provides that “a landlord shall not at any
time during a tenant’s occupancy of a rental unit and before the day on which
an order … substantially interfere with the reasonable enjoyment of the rental
unit or the residential complex in which it is located for all usual purposes
by a tenant or members of his or her household”.<o:p></o:p></span></p>
<p class="MsoNormal" style="text-align: justify;"><span style="font-size: medium;">The landlord becomes the referee of tenant disputes because
of section 22 cited above.<span style="mso-spacerun: yes;"> </span>How so? Well,
if a tenant is harassing another tenant, or saying or doing something that is
interfering with a tenant’s reasonable enjoyment then it is the landlord’s duty
to investigate and take legal steps to stop the harassment.<span style="mso-spacerun: yes;"> </span>A failure to do that is a breach of section
22 RTA, and then the tenant who is being harassed by another tenant can end up
having a legal claim against the landlord for that other tenant’s behaviour.<o:p></o:p></span></p>
<p class="MsoNormal" style="text-align: justify;"><span style="font-size: medium;">Therefore, while it might be tempting to tell fighting
tenants to sort out their own problems or “grow up” the reality is that the
fighting is the landlord’s problem because that fighting can lead to claims for
a rent abatement, fines, damages, and “other” orders upon application by the
tenant to the <a href="https://tribunalsontario.ca/ltb/" target="_blank">Ontario Landlord and Tenant Board</a> in Form T2 (tenant’s rights).<span style="mso-spacerun: yes;"> </span>Why does the landlord suffer the having to
deal with the claim?<span style="mso-spacerun: yes;"> </span>Because the
Residential Tenancies Act and the Ontario Landlord and Tenant Board do not give
tenants a right of direct action against each other.<span style="mso-spacerun: yes;"> </span>A tenant can’t file an application to get
another tenant evicted.<span style="mso-spacerun: yes;"> </span>A tenant can’t
file an application to force another tenant to behave or suffer the consequences.<span style="mso-spacerun: yes;"> </span>Tenants can only file an application against
the landlord, its agents, and the superintendent (not other tenants).<span style="mso-spacerun: yes;"> </span>Therefore, when a tenant is harassed and
nothing is done to stop it, the tenant’s only legal recourse is to sue the
landlord.<o:p></o:p></span></p>
<p class="MsoNormal" style="text-align: justify;"><span style="font-size: medium;"><b><i>SO WHAT SHOULD the landlord do?</i></b><o:p></o:p></span></p>
<p class="MsoNormal" style="text-align: justify;"><span style="font-size: medium;">The first thing that you, as landlord, should do is to
establish a formalized complaints process.<span style="mso-spacerun: yes;">
</span>Typically, the bickering tenants are happy to share their complaints by
talking with the landlord.<span style="mso-spacerun: yes;"> </span>Little is put
in writing.<span style="mso-spacerun: yes;"> </span>That needs to stop.<span style="mso-spacerun: yes;"> </span>As a landlord you should require all tenants
to put their complaints, demand for service and anything else in writing to
you.<span style="mso-spacerun: yes;"> </span>You can produce a form, have a
special website to receive complaints or requests or have a pre-printed form
for tenants to fill out and hand in at the office.<span style="mso-spacerun: yes;"> </span>How you get the complaint in writing does
not really matter.<span style="mso-spacerun: yes;"> </span>The key is to get it
in writing.<o:p></o:p></span></p>
<p class="MsoNormal" style="text-align: justify;"><span style="font-size: medium;">I strongly urge you, in demanding that complaints be received
in writing that you set out certain minimum information requirements in any
complaint.<span style="mso-spacerun: yes;"> </span>For complaints about other
tenants you will want the complaint to include at least
the minimum following information:</span></p><p class="MsoNormal"></p><ol style="text-align: left;"><li style="text-align: justify;"><span style="font-size: large; text-indent: -0.25in;">Their own name and unit number</span></li><li style="text-align: justify;">The date of the complaint</li><li style="text-align: justify;">The name of the tenant they are complaining
about</li><li style="text-align: justify;">The unit number of the tenant they are complaining
about</li><li style="text-align: justify;">Identifying information if they do not know the
name of the tenant or the guest or family member who is causing the problem</li><li style="text-align: justify;">The date and time of the incident</li><li style="text-align: justify;">A thorough description of the incident and identify witnesses</li><li style="text-align: justify;">The impact of the incident on the complaining
tenant</li><li style="text-align: justify;">Information about what the complaining tenant did
about the incident (i.e. call police? Bylaw? Confront the tenant? Confront the
guest? Nothing?)</li></ol><p></p>
<p class="MsoNormal" style="margin-left: 0.25in; text-align: justify;"><span style="font-size: medium;">If every complaint you receive has at least the foregoing information you will have a base level of
detail needed to efficiently investigate the complaint.<span style="mso-spacerun: yes;"> </span>Without the base level of detail being provided with a complaint you may find that you are running around, asking questions,
and trying to investigate issues that you do not understand in the first
place.<span style="mso-spacerun: yes;"> </span>This is a frustrating situation (you will eventually want to scream) and you will basically waste your time trying to collect information that you should have at the start of every complaint.<span style="mso-spacerun: yes;"> </span>Hence,
require all complaints to be in writing (or after receiving an oral complaint tell the tenant they need to put the complaint in writing so that you can take action).<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left: 0.25in; text-align: justify;"><span style="font-size: medium;"><b><i>INVESTIGATE</i></b><o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left: 0.25in; text-align: justify;"><span style="font-size: medium;">You are required to investigate
complaints and to take appropriate action. The trick will be to decide what is "appropriate".<span style="mso-spacerun: yes;"> </span>Some complaints may be frivolous, vexatious, or just made up and others can be exactly
right, precise, and serious.<span style="mso-spacerun: yes;"> </span>There will be a range
of seriousness in the complaints and by receiving the complaints in writing you
will be able to judge the seriousness of the complaints and let that inform
your response and speed of it.<span style="mso-spacerun: yes;"> </span>Some
complaints may be resolvable by you simply calling the tenant who was
complained about.<span style="mso-spacerun: yes;"> </span>Some complaints may
require you to attend at the property, inspect the property, speak to other
tenants, staff and witnesses, or make inquiries with 3<sup>rd</sup> parties
(police, City officials), to resolve the complaints.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left: 0.25in; text-align: justify;"><span style="font-size: medium;">You are, as a landlord, required
to take complaints seriously and to address them promptly.<span style="mso-spacerun: yes;"> </span>There is indeed hard time consuming work involved and some
tenants may of course occupy a lot of your time.<span style="mso-spacerun: yes;"> That i</span>s part of the job of being
a landlord-- to take complaints seriously and deal with the what is being alleged.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left: 0.25in; text-align: justify;"><span style="font-size: medium;"><b><i>RESULTS of investigation</i></b><o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left: 0.25in; text-align: justify;"><span style="font-size: medium;">It is important that you maintain
some notes of what steps you took in relation to the complaints received.<span style="mso-spacerun: yes;"> </span>It is valuable to record the date and time of
receiving the complaint, what you did with the complaint, who you spoke to and
when, what you observed, what evidence was available (for example security
camera footage) and what conclusions you drew from your investigation.<span style="mso-spacerun: yes;"> </span>If the complaint is well founded then of
course you may have collected evidence too—video, photos, voice recordings,
text messages (from other people), emails (including from other people), witness statements etc..<span style="mso-spacerun: yes;"> </span>It is important to collect this
evidence and preserve it for use if you need to take legal action.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left: 0.25in; text-align: justify;"><span style="font-size: medium;">It is also possible that you
conclude that the incident complained about can not be proven.<span style="mso-spacerun: yes;"> </span>Or, you might conclude that it never
happened.<span style="mso-spacerun: yes;"> </span>Or you might conclude that the
complaint was made maliciously.<span style="mso-spacerun: yes;"> </span>Whatever
you conclude, you should make a record of what you concluded and why you reached
that conclusion.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left: 0.25in; text-align: justify;"><span style="font-size: medium;">The value in recording your
conclusion is that through a proper investigation you are fulfilling your duty
as a landlord under the Residential Tenancies Act. Your records setting out what you did is evidence of fulfilling your duty.<span style="mso-spacerun: yes;"> </span>Section 22 of the RTA does not make a
landlord a guarantor of quiet enjoyment/reasonable enjoyment—meaning you are not
responsible for the impacts of other tenants’ misbehaviour on other tenants—so long
as you take reasonable action to investigate and determine whether the complaints
are well founded or not and to take action where the circumstance require it.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left: 0.25in; text-align: justify;"><span style="font-size: medium;"><b><i>WHAT TO DO WITH the conclusions of
your investigations?</i></b><o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left: 0.25in; text-align: justify;"><span style="font-size: medium;">When you have reached your
conclusions you should report back to the complainant about what you have
concluded.<span style="mso-spacerun: yes;"> </span>This does not mean sharing
the nitty gritty details that perhaps were shared in confidence by others nor
does it mean that you disclose confidential information shared with you as the landlord.<span style="mso-spacerun: yes;"> </span>However, it does mean that the complainant should
receive some kind of indication of what has become of the complaint.<span style="mso-spacerun: yes;"> </span>Even if that means that you are closing the
complaint without taking further action.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left: 0.25in; text-align: justify;"><span style="font-size: medium;">When you reach a conclusion that a
complaint is well founded and that “something” did happen you have discretion
and flexibility on how to respond.<span style="mso-spacerun: yes;"> </span>Just
because a complaint may be well founded does not mean that you need to serve
legal papers and pursue eviction of the tenant.<span style="mso-spacerun: yes;"> </span>You have discretion to determine a reasonable
outcome of a complaint and to deal with the wrongdoing tenant in a way that
solves the problem or likely resolves the problem.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left: 0.25in; text-align: justify;"><span style="font-size: medium;">For example, say the complaint is
that the upstairs tenant was shouting, screaming, and partying until 3 in the
morning and that guests were vomiting in the bushes and the downstairs
neighbours planters were destroyed.<span style="mso-spacerun: yes;"> </span>That
kind of behaviour, if proven, could indeed justify serving a Notice of
Termination in Form N5—in fact, some people (especially the downstairs tenant)
may feel that it is absolutely mandatory for you to serve the Notice of
Termination and take all necessary steps to evict the tenant.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left: 0.25in; text-align: justify;"><span style="font-size: medium;">That being said, what if you
discover in your investigation that the incident/party was the result of the tenant’s
high-school aged child having a party while the parents were out of town. <span style="mso-spacerun: yes;"> </span>You discover that the tenants had told their
child to have only a few friends over and to be “careful”.<span style="mso-spacerun: yes;"> </span>The parents tell you that the child has never
been in trouble and they thought he could be trusted.<span style="mso-spacerun: yes;"> </span>The parents then explain how the party got
out of hand, that they have disciplined their child and that they have
approached the complaining tenant to compensate the tenant for the damaged
property and further that they have instructed their child to apologize to the
neighbour.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left: 0.25in; text-align: justify;"><span style="font-size: medium;">Perhaps you conclude that the explanation
is sincere and that you believe there is little risk of anything happening again.<span style="mso-spacerun: yes;"> </span>In these circumstances it would not be
unreasonable to decide to close the investigation with a decision to simply do
nothing other than to provide an oral warning to the parents that this can not
happen again.<span style="mso-spacerun: yes;"> </span>Some might find your
response wrong and inadequate.<span style="mso-spacerun: yes;"> </span>However,
you have the discretion to make this decision if you can demonstrate a logic
and rationale for your decision.<span style="mso-spacerun: yes;"> </span>It is
not always necessary to seek the harshest outcome (termination and
eviction).<span style="mso-spacerun: yes;"> </span>In fact, the Landlord and
Tenant Board itself exercises discretion and gives numerous second chances to
tenants who have made mistakes.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left: 0.25in; text-align: justify;"><span style="font-size: medium;"><b><i>SERIOUS conclusion of complaints
being well founded</i></b><o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left: 0.25in; text-align: justify;"><span style="font-size: medium;">If your investigation does result
in your determining that the incidents occurred, that there is no good excuse
and that there is a risk of the incidents occurring again then it may be
necessary to deal with the issue as provided in the Residential Tenancies Act
(RTA).<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left: 0.25in; text-align: justify;"><span style="font-size: medium;">The RTA has a series of forms—N5, N6,
N7 that are the main “behaviour and misconduct” forms.<span style="mso-spacerun: yes;"> </span>These forms start the legal process to
terminate and evict a tenant for bad behaviour (including damage to
property).<span style="mso-spacerun: yes;"> </span>If through your investigation
you have gathered information and evidence that would justify the serving of a
Notice of Termination then you need to seriously consider doing that.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left: 0.25in; text-align: justify;"><span style="font-size: medium;">Serving a Notice of Termination is
your “duty” as a landlord if the circumstances call for it.<span style="mso-spacerun: yes;"> </span>Failing to take this legal action can lead to
legal action against you.<span style="mso-spacerun: yes;"> </span>Complaining
tenants, who feel you are doing nothing, can file an application against
you.<span style="mso-spacerun: yes;"> </span>Interestingly (based on recent
cases decided by the Condominium Authority of Ontario), a condo corporation (or other owners) can
take action against you and your tenant for breaches of rules and bylaws of the
condo.<span style="mso-spacerun: yes;"> </span>Those cases lay the blame at
your feet (for the tenant’s behaviour) where you do nothing to deal with the
problems caused by your tenant.<span style="mso-spacerun: yes;"> </span>These cases have resulted in Orders of several thousands of dollars in legal costs
being levied against the Owner (i.e. Landlord) and those costs are liened against
your unit which means you are paying those costs one way or another.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left: 0.25in; text-align: justify;"><span style="font-size: medium;">Hence, the conclusion to be drawn
is that you have an obligation to take legal action when the circumstances demand
it—based on the reasonableness standard.<span style="mso-spacerun: yes;">
</span>Yes, you have flexibility, but that flexibility and discretion needs to
be judged in the context of reasonableness.<span style="mso-spacerun: yes;">
</span>If you fail to take action it could be very costly to you.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left: 0.25in; text-align: justify;"><span style="font-size: medium;"><b><i>THE FORMS—the action</i></b><o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left: 0.25in; text-align: justify;"><span style="font-size: medium;">Can you fill out the Notices of Termination
on your own?<span style="mso-spacerun: yes;"> </span>Can you shepherd your case through
the Ontario Landlord and Tenant Board system on your own?<span style="mso-spacerun: yes;"> </span>The answer is
most certainly “yes” though it is highly advisable that you don’t.<span style="mso-spacerun: yes;"> </span>Once you get to the Forms stage of
proceedings you are into highly technical legal requirements that will very likely
“catch you out” at least once if not more times.<span style="mso-spacerun: yes;"> </span>You may take a look at the Forms on the
Ontario Landlord and Tenant Board website and you may say to yourself—“this doesn’t
look all that complicated”.<span style="mso-spacerun: yes;"> </span>And in a sense
you are correct.<span style="mso-spacerun: yes;"> </span>It doesn’t look
complicated and you would think that with a little reading all should go well.<span style="mso-spacerun: yes;"> </span>There could be nothing further from the truth.<span style="mso-spacerun: yes;"> </span>Notices of Termination need to be <i><b>perfectly</b></i>
correct.<span style="mso-spacerun: yes;"> </span>The slightest error and they
are void--void means start again, lose your application fee, and do all the work again.<span style="mso-spacerun: yes;"> </span>If you attend hearings you
will hear landlords exclaiming frustration at what they describe as minor, petty,
technicalities, that should be overlooked because what was meant was “obvious”.<span style="mso-spacerun: yes;"> </span>Sorry, case dismissed (like it or not).<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left: 0.25in; text-align: justify;"><span style="font-size: medium;">Licenced paralegals and lawyers
are available for drafting and serving Notices of Termination and for
appearing at hearings to represent you. While no one likes to spend money on legal fees you may find that the average cost of representation is well worth it relative to the headaches and wasted time that may come with representing yourself.<span style="mso-spacerun: yes;"> </span>With experienced paralegals
and lawyers you are likely to have a smoother experience and hopefully only
have to attend an LTB hearing once to solve the problem.<span style="mso-spacerun: yes;"> </span></span></p><p class="MsoNormal" style="margin-left: 0.25in; text-align: justify;"><span style="font-size: medium;">The LTB, while it in theory represents a
friendly process where you are encouraged to just “tell your story and all will
be fine” the reality is that it is a highly adversarial process full of
technicalities, loopholes, and procedural niceties that will turn the novice
inside out and spit you out if you encounter an opposite party who understands
the law, the technicalities and the legal processes of the Landlord and Tenant Board.<span style="mso-spacerun: yes;"> </span>Do yourself a favour (at least the first few
times) and retain an experienced legal representative at the drafting of the
Notice of Termination stage and follow their good advice.<span style="mso-spacerun: yes;"> </span>Whether you win or not, starts with what you
write in the Notice of Termination and it is the right stage at which to seek
legal advice. <span style="mso-spacerun: yes;"> </span></span><o:p></o:p></p>Michael K. E. Thielehttp://www.blogger.com/profile/10247495615982921581noreply@blogger.com2tag:blogger.com,1999:blog-6703393754400182307.post-37247040964761390142023-03-13T13:59:00.002-04:002023-03-13T16:53:06.510-04:00Non-Payment of Rent. What should a residential landlord do?<p><b><span style="font-size: large;"> </span></b></p><p class="MsoNormal"><b><span style="font-size: large;">WHEN A RESIDENTIAL TENANT DOES NOT PAY RENT---what do I do? A landlord's guide.</span></b><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size: large;">You would think that there is only one course of action, one
legal answer, one path to dealing with a tenant who has failed to pay rent for
their apartment. It happens to landlords
every day, in fact it happens to many landlords regularly with many of their
tenants. Non-payment of rent is a
serious, ongoing and significant problem for landlords and tenants alike. So what do you do if you are a landlord?<o:p></o:p></span></p>
<p class="MsoNormal"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjGozJ6ZmTdA9zefsVTTuQejb7AHxqFJcxcbR1eVXlsjcehR_m9dem0lzzYJqyOAaZx3HjDr77tQtFFiFUHPQGZno-jPX7wyj0g04OVfTwS5H1RAiH-5fsZKnW9NGdm4nDmbY5aI9dcsvP8ZGwZbbOzOMeNJamQ0TkmiOrOddlkl3rEPzdJPrtToopSpw/s1734/Photo%20Apt.jpg" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><span style="font-size: large;"><img border="0" data-original-height="1734" data-original-width="902" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjGozJ6ZmTdA9zefsVTTuQejb7AHxqFJcxcbR1eVXlsjcehR_m9dem0lzzYJqyOAaZx3HjDr77tQtFFiFUHPQGZno-jPX7wyj0g04OVfTwS5H1RAiH-5fsZKnW9NGdm4nDmbY5aI9dcsvP8ZGwZbbOzOMeNJamQ0TkmiOrOddlkl3rEPzdJPrtToopSpw/s320/Photo%20Apt.jpg" width="166" /></span></a></div><span style="font-size: large;"><br />I encourage landlords to keep in mind their legal rights
under the <a href="https://canlii.ca/t/55fnc" target="_blank">Residential Tenancies Act</a> and I strongly encourage and advise
landlords to exercise immediately and without delay their legal rights under
the law.<span style="mso-spacerun: yes;"> </span>There are a number of reasons
for this but these days, the number one reason is that legal proceedings are
inordinately delayed—i.e. slow, slow as molasses going up-hill in the winter
kind of slow.<span style="mso-spacerun: yes;"> </span>You are looking at many
months of delay in getting a hearing at the <a href="https://tribunalsontario.ca/ltb/" target="_blank">Ontario Landlord and Tenant Board</a>.<span style="mso-spacerun: yes;"> </span>By months I mean possibly years.<span style="mso-spacerun: yes;"> </span>The reason for the delays, first hearings,
rescheduling, continuation of hearings are numerous, unpredictable, and often times
just plain bizarre.<span style="mso-spacerun: yes;"> </span>Ultimately though,
it doesn’t matter <i>why</i> legal proceedings are slow—the fact is that they
are.<span style="mso-spacerun: yes;"> </span>Hence you need to exercise your
legal rights immediately and efficiently so that you can get in line—as quickly
as possible to wait for your turn.<o:p></o:p></span><p></p>
<p class="MsoNormal"><span style="font-size: large;">Aside from the excruciatingly slow proceedings at the LTB,
what other reasons are there to take legal action quickly and follow up on your
rights under the Residential Tenancies Act fully and completely?<span style="mso-spacerun: yes;"> </span>My experience is that having pending legal
proceedings is the number one way to encourage a tenant to be reasonable and to
work with you in resolving whatever the issues might be that are causing the
late or non-payment of rent.<span style="mso-spacerun: yes;"> </span>Starting
the legal process in no way stops you, as a landlord, from being compassionate,
empathetic, understanding, and generous with your tenants.<span style="mso-spacerun: yes;"> </span>You retain the power and remain able to make
deals, maintain the tenancy, enter into payment plans, and basically cut the
tenant a break if you wish.<span style="mso-spacerun: yes;"> </span>Nothing
about starting the legal process prevents you from being generous and
understanding.<span style="mso-spacerun: yes;"> </span>What the legal process
does, however, is formalize your generosity and it puts in place (ultimately)
an enforceable legal agreement that if the tenant breaches the agreement (or
consent Order) then you have the option of enforcing termination and eviction
of the tenancy.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size: large;">Why not start with generosity, working with, and
co-operatively examining the problem with the tenant?<span style="mso-spacerun: yes;"> </span>I think the simple answer is that the
non-payment of rent is not something that is within the ultimate control of the
tenant.<span style="mso-spacerun: yes;"> </span>If your tenant is not paying
rent then it is likely that they have no money or not enough money to meet
their ongoing expenses.<span style="mso-spacerun: yes;"> </span>Simply being
empathetic and wanting to “help” does not result in the tenant having the money
to pay the rent.<span style="mso-spacerun: yes;"> </span>Sometimes, the reality
of the situation is that a tenant will never be able to pay the ongoing rent,
nor the rent arrears, and the tenancy needs to come to an end.<span style="mso-spacerun: yes;"> </span>It isn’t because the tenant is a bad person,
mean or vindictive (though it could be that too), that rent isn’t being
paid.<span style="mso-spacerun: yes;"> </span>Sometimes people/tenants lose
jobs, separate/divorce, get sick, or suffer some other life event that makes
payment of rent impossible.<span style="mso-spacerun: yes;"> </span>When that
happens even the best tenants may, with regret, live without paying rent in
your property for as long as they can.<span style="mso-spacerun: yes;"> </span>They
may state, with the best of intentions and they will promise that the rent arrears
will be paid back and they may beg you to trust them.<span style="mso-spacerun: yes;"> </span>Unfortunately, down the road the reality of
their personal hardship will hit home and sometimes they take the only
remaining route open to them and declare bankruptcy thereby effectively wiping
out the debt owed to you.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size: large;">You owe it to yourself to treat your rental property and the
income it generates as a business.<span style="mso-spacerun: yes;"> </span>While
business decisions need not be devoid of empathy you do need to protect yourself
from unreasonable loss and harm.<span style="mso-spacerun: yes;"> </span>To
that end you should be aware that even if you follow the law to the letter you
will likely suffer some financial loss with a tenant who is unable to pay rent
arrears and future ongoing rent.<span style="mso-spacerun: yes;"> </span>The
Residential Tenancies Act provides the tenant with numerous opportunities to
pay rent arrears, void Notices of Termination, and to void eviction Orders by
catching up with rent arrears.<span style="mso-spacerun: yes;"> </span>Whether
you agree or not, the Residential Tenancies Act gives the tenants many many
opportunities to void any of your efforts to terminate the tenancy for
non-payment of rent.<span style="mso-spacerun: yes;"> </span>This is the case
regardless of the financial impact of the non-payment of rent on you.<span style="mso-spacerun: yes;"> </span>The Ontario Landlord and Tenant Board is not
required to take into account your financial hardship, that you need the rent
to pay the mortgage, or anything of the sort.<span style="mso-spacerun: yes;">
</span>The Ontario Landlord and Tenant Board is not an eviction machine there
to assist landlords in evicting tenants—it is important to recognize this fact.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size: large;">So what are the steps that a landlord should follow when a
tenant does not pay rent?<span style="mso-spacerun: yes;"> </span>Here they are:</span></p><p class="MsoNormal"></p><ol style="text-align: left;"><li><span style="font-size: large;"><span style="text-indent: -0.25in;">On the first day after rent is due and remains
unpaid a landlord should fill out a Form N4.</span><span style="text-indent: -0.25in;">
</span><span style="text-indent: -0.25in;">This </span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">form is a Notice of Termination for Non-Payment of Rent.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">You can find the Form on the <a href="https://tribunalsontario.ca/ltb/forms/" target="_blank">Ontario Landlordand Tenant Board website</a>.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">It is absolutely
critical that you fill out this form in a way that is PERFECTLY correct.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">The slightest error is likely to void the
form and you would have to start all over again.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">The Landlord and Tenant Board website has a
guide to filling out the form and there are many websites (and in fact another
blog article on this site with a video) setting out the steps to filling in the
Form N4.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">While the Landlord and Tenant
Board is set up with the intention of landlords representing themselves you might
want to consider retaining a lawyer or paralegal to assist you in preparing and
serving the forms as the forms are deceivingly technical.</span></span></li><li><span style="font-size: large;">Once you fill out the Form N4 (Notice of
Termination for Non-Payment of Rent), you need to serve it on the tenant
(remember to keep an exact duplicate copy for yourself).<span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">There are numerous ways that you may
lawfully serve the N4 Form.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">Ideally your
standard form lease provides that you may serve Forms by email (check closely
to make sure it does if you serve this way).</span><span style="text-indent: -0.25in;">
</span><span style="text-indent: -0.25in;">Other ways include serving by handing it to the tenant, sliding it under
the door, placing it in a mailbox where mail is ordinarily delivered, or even
by mailing it.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">What is most important
to recognize is that HOW you serve the form impacts the termination date that
you inserted in the Form when you filled it out.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">Different methods of service change the date
that the tenant is deemed to receive the N4.</span><span style="text-indent: -0.25in;">
</span><span style="text-indent: -0.25in;">Hence, you need to adjust the termination date based on the manner of
service.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">So, once you have served the N4
you need to fill out a Certificate of Service (also available on the Landlord
and Tenant Board website).</span></span></li><li><span style="font-size: large;">Once the N4 is served you will then, from a
legal perspective, have to wait 14 days to see if the tenant pays the rent
arrears.<span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">If the tenant does pay all of
the rent arrears then the N4 becomes void.</span><span style="text-indent: -0.25in;">
</span><span style="text-indent: -0.25in;">If the tenant does not pay the rent arrears owing (which includes any
new rent that became due) then you are in a position to file an application to
the Ontario Landlord and Tenant Board.</span><span style="text-indent: -0.25in;">
</span><span style="text-indent: -0.25in;">That Application is called a Form L1 (Application to terminate a tenancy
for Non-Payment of Rent).</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">In the modern
Landlord and Tenant Board take a look at the “Portal”.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">You will find the link on the Landlord and
Tenant Board website.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">Through this
portal you will be able to file your application electronically.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">Note that you will need a digitized copy of
your N4 and the Certificate of Service.</span></span></li><li><span style="font-size: large;">While you are waiting for the 14 day period to
pass, and even after you have applied to the Landlord and Tenant Board, it is
worthwhile for you to reach out to the tenant to see what the issue might be.<span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">Perhaps you can work out a deal, perhaps you
can come to some sort of agreement.</span><span style="text-indent: -0.25in;">
</span><span style="text-indent: -0.25in;">There is no need to be nasty or rude as this will accomplish nothing and
may in fact put you in breach of your obligations under the Residential
Tenancies Act.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">It is important to be
aware that a tenant’s non-payment of rent does not relieve you of your
obligations under the Residential Tenancies Act.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">In fact, if you retaliate against a tenant
for non-payment of rent you might find yourself facing charges in the Provincial
Offences Court.</span></span></li><li><span style="font-size: large;">After you have filed the L1 application with the
Ontario Landlord and Tenant Board you will simply wait (and wait, and wait, and
wait) for the Landlord and Tenant Board to issue a Notice of Hearing.<span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">The Notice of Hearing will be sent to you and
to your tenant.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">The Notice of Hearing sets
out the information needed to attend the hearing (via ZOOM) and further
provides instructions for both you and the tenant for filing of additional
documents.</span></span></li><li><span style="font-size: large;">A week before the hearing (7 days), the landlord
will be required to serve and file the L1/L9 Update Sheet.<span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">This form is available on the Landlord and Tenant
Board website.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">It is a form that asks
you 10 questions.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">The LTB needs the
answers to these questions to write the Order that you will be requesting.</span></span></li><li><span style="font-size: large;">When the day of the hearing comes you should
sign onto the ZOOM early (if you can) and get signed in.<span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">This will be a useful time to see if the
tenant has shown up and perhaps to see if the tenant is prepared to mediate if
they have shown up.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">Mediation is typically
offered by the Landlord and Tenant Board and it is a no risk proposition.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">If you successfully mediate—well then you can
sign off and be done!</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">If you do not
successfully mediate your case will proceed to hearing that same day.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">Mediation is a great opportunity to
negotiate a resolution with the tenant. </span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">A mediated agreement may include a payment
plan, a consent termination, enforcement of eviction, and a host of other
issues that the parties may wish to deal with.</span><span style="text-indent: -0.25in;">
</span><span style="text-indent: -0.25in;">The LTB mediators are able to record any consent agreement into an Order
or if necessary, they can take you into a hearing room (to the front of the
line) and get an adjudicator to write an Order in accordance with your consent
terms.</span></span></li><li><span style="font-size: large;">The other thing that you may see, on the day of
the hearing, is that your tenant may sign on and then disappear into a breakout
room to meet with duty counsel.<span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">Tenants
are offered free legal advice from Ontario Legal Aid.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">This can be beneficial to you in that many
tenants informed of their legal rights will then be more willing to reach an agreement
with you.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">Of course, the opposite can
also be true in that duty counsel may identify errors or issues in your
application or determine that the tenant needs an adjournment to retain
counsel.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">Either way, you have no control
over whether the tenant sees duty counsel or not.</span></span></li><li><span style="font-size: large;"><span style="font-feature-settings: normal; font-kerning: auto; font-optical-sizing: auto; font-stretch: normal; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variation-settings: normal; line-height: normal;"> </span><span style="text-indent: -0.25in;">If you end up in the hearing the adjudicator
will prompt you about your claim.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">The
L1/L9 update sheet that you served and filed should be completely current to
the day of the hearing.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">If (by chance)
the tenant has made some payments before the hearing but after you filed the
L1/L9 update sheet you should fill out another form that is completely
current.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">It can be very helpful to attach
to the L1/L9 update sheet a rent ledger showing the exact amounts owing and
being up to date.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">Have this updated
L1/L9 Update Sheet scanned to your computer and on your desktop (I like to
already attach it to an email and leave it open).</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">During the hearing the Adjudicator may invite
you to email the most up to date L1/L9 update sheet to an email address that
the member will provide to you (you enter the LTB file Number and the Adjudicator’s
name in the subject line).</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">Once invited
to email it, you can send it and the adjudicator will open the document in real
time so that the most current information is available. [note that this email
method is how information is exchanged most commonly during hearings—you should
always copy the other side with any email that you send to the LTB and the
Adjudicator].</span></span></li><li><span style="font-size: large;">On the assumption that the Adjudicator is
satisfied with your documents and agrees with the math that you have done, the
adjudicator will likely ask you what it is that you are seeking.<span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">The easiest answer is to state that you are
seeking a “standard order”.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">This is a
term of Art that only means something to people who are involved in this area
of law.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">The phrase appears no where in
the Residential Tenancies Act.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">What it
means is that the adjudicator will grant you an order terminating the tenancy
for non-payment of rent plus the application fee (presuming you asked for
it).</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">The Order will specify that the
tenancy will terminate in 11 days from the date of the Order.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">Until that 11 days passes the tenant is given
the opportunity to pay the full amount owing so as to void the Order and
maintain the tenancy.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">After the 11 days
the Order becomes enforceable and the tenant’s opportunity to “void” the Order becomes
more constrained (though not impossible).</span></span></li><li><span style="font-size: large;"><span style="font-feature-settings: normal; font-kerning: auto; font-optical-sizing: auto; font-stretch: normal; font-variant-alternates: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-variation-settings: normal; line-height: normal;"> </span><span style="text-indent: -0.25in;">You have no choice about the tenant receiving a
further opportunity to void the Order and maintain the tenancy.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">The Residential Tenancies Act mandates that
the tenant be given such an opportunity.</span></span></li><li><span style="font-size: large;">Once the Order is issued and presuming the
tenant has not paid it and has still refused to move out you will need to file
the Order with the Sheriff for enforcement.<span style="text-indent: -0.25in;">
</span><span style="text-indent: -0.25in;">The Sheriff is located at your local courthouse (in the jurisdiction
where the rental unit is located).</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">The Sheriff
at the Court Enforcement Office (at the Courthouse) in the various districts
around the province all operate a little differently and in accordance with
local practice.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">You will want to familiarize
yourself with the local practice once it becomes clear that you are going to
need the Sheriff to enforce the eviction.</span><span style="text-indent: -0.25in;">
</span><span style="text-indent: -0.25in;">Familiarize yourself by either going to the Courthouse OR I highly recommend
that you find a local lawyer or paralegal who regularly enforces Orders.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">Watch and learn from their system of filing
the eviction.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">The Sheriff will ultimately
give the tenant a Notice to Vacate and in that Notice to Vacate give the tenant
a number of days to move out (in Ottawa that is typically 7 days depending on
workload).</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">On the time appointed in the
Notice to Vacate you will need to attend at the rental unit (or send a representative)
to meet the Sheriff.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">You should bring a locksmith
or be prepared to open the door and change the locks yourself if you have those
skills at the direction of the Sheriff.</span></span></li><li><span style="font-size: large;">Once the Sheriff has completed the eviction the
sheriff will give you a sheet of paper confirming that the rental unit has been
delivered to you.<span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">This piece of paper is
worth its weight in gold as this is your proof that the tenant is no longer
entitled to be on the property.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">Retain a
copy to show police should the tenant show up and enter the unit after the
eviction has been enforced.</span> </span></li></ol>
<p class="MsoNormal" style="margin-left: 0.25in;"><span style="font-size: large;">The steps above are a broad
outline of the process and explains what you should do if your tenant does not
pay the rent.<span style="mso-spacerun: yes;"> </span>Your tenant may, at almost
any time in the above process, cancel the proceedings and void whatever you
have done by paying the amounts owed.<span style="mso-spacerun: yes;">
</span>This is the tenants’ right under the Residential Tenancies Act.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>It is
definitely worthwhile for you to follow this process as repeated service of N4’s
(that are voided by payment) may ultimately be used to terminate a tenant’s
tenancy for persistent late payment of rent (Form N8).<span style="mso-spacerun: yes;"> </span>Most importantly though, starting the legal
process when the law allows results in you minimizing the amount of money that
you may lose with a tenant who never intends or is unable to pay the rent
arrears to you.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left: 0.25in;"><span style="font-size: large;">The steps described above are just
an outline and there are a few additional steps that could be added and which
can complicate the proceedings.<span style="mso-spacerun: yes;"> </span>What is
not mentioned above is that a tenant may choose—in the sense that a good
defence is a good offence—to file as a defence a claim against your for a rent
abatement.<span style="mso-spacerun: yes;"> </span>This can be done under
section 82 Residential Tenancies Act.<span style="mso-spacerun: yes;"> </span>It
is a complete shortcut process and the tenant can make the assertions without
filing a proper application.<span style="mso-spacerun: yes;"> </span>You will
see a reference to this right in the Notice of Hearing.<span style="mso-spacerun: yes;"> </span>If the tenant does plan to assert a section
82 claim they are required to give you a form and 7 days notice of this
intention (the 7 days being 7 days before the hearing).<span style="mso-spacerun: yes;"> </span>You then have 5 days to file responding materials
to the tenant’s claims.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left: 0.25in;"><span style="font-size: large;">Also, not mentioned in great
detail is the right of tenants to seek relief from the strict requirements of
your lease.<span style="mso-spacerun: yes;"> </span>The tenant can explain how
the rent arrears happened, that circumstances have changed, and that they would
like a delayed termination or an opportunity to maintain the tenancy with a
payment plan for the arrears.<span style="mso-spacerun: yes;"> </span>The legal
authority for this is under section 83 of the Residential Tenancies Act.<span style="mso-spacerun: yes;"> </span>The adjudicator is empowered under the RTA to
include such terms as are considered just in the Order.<span style="mso-spacerun: yes;"> </span>This discretionary power is for the benefit
of the tenant and while you may be asked to give your view about such requests
the LTB will be inclined to grant some relief if the tenant asks in the right
way.<span style="mso-spacerun: yes;"> </span>As a landlord your response to such
requests needs to focus on why the relief requested would be unfair or
unrealistic and unlikely to solve the underlying problems.<span style="mso-spacerun: yes;"> </span>Failing that, a tenant is likely to get a
chance.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left: 0.25in;"><span style="font-size: large;">If the LTB issues a conditional Order,
giving the tenant another chance to maintain the tenancy, then you as the
landlord will be told that you can file an L4 Application (section 78 RTA) if
the tenant breaches any of the conditions in the Order.<span style="mso-spacerun: yes;"> </span>It will be imperative that you read the Order
closely for the conditions and for you to file immediately if the tenant
breaches.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left: 0.25in;"><o:p><span style="font-size: large;"> </span></o:p></p>
<p class="MsoNormal" style="margin-left: 0.25in;"><span style="font-size: large;"><b>CONCLUSION</b><o:p></o:p></span></p>
<p class="MsoNormal" style="margin-left: 0.25in;"><span style="font-size: large;">Non-payment of rent and
termination of a residential tenancy for non-payment is highly technical and a
detailed process under the Residential Tenancies Act. You may be inclined to think that it isn’t so
difficult a concept as what could be simpler—that determining that rent wasn’t paid. Hopefully from the above you can see that there
is actually nothing simple about it at all.
As a landlord you are held to a standard of perfection in relation to N4
Forms. Tenants are given numerous
opportunities to void termination and maintain tenancies. It would be wise for you to seek legal help
for at least the first few of these applications before venturing out on your
own. Watch and learn the process from an
experienced paralegal or lawyer so that you can avoid the kinds of errors that
will have your starting over again. </span><o:p></o:p></p>Michael K. E. Thielehttp://www.blogger.com/profile/10247495615982921581noreply@blogger.com0tag:blogger.com,1999:blog-6703393754400182307.post-39893146005818883272023-02-03T17:04:00.012-05:002023-03-26T10:11:14.936-04:00Ontario Realtors taking pictures to market a rental property---Legal?<div class="separator" style="clear: both;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhE_idRlAo9QC1y7201tfW3gqFIV0wTgI043qDeZ1tkXZWQOiFMKul7Yj5CQpfGStb3H4XSbBebaq-fso3-RlBDilVF8ZukAPsIsks0mycnUGeUrPacl08n9YIqED8LZWyxLZcUck41AA1GR-ID756aPwCEV7q9tmpzVqWX7MNDSpTbwP9StDIEQbFsHQ/s2530/IMG_1382.jpeg" style="clear: left; display: block; float: left; padding: 1em 0px; text-align: center;"><img alt="Photo taken from street of a house for rent with a for rent sign visible." border="0" data-original-height="2530" data-original-width="2392" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhE_idRlAo9QC1y7201tfW3gqFIV0wTgI043qDeZ1tkXZWQOiFMKul7Yj5CQpfGStb3H4XSbBebaq-fso3-RlBDilVF8ZukAPsIsks0mycnUGeUrPacl08n9YIqED8LZWyxLZcUck41AA1GR-ID756aPwCEV7q9tmpzVqWX7MNDSpTbwP9StDIEQbFsHQ/w303-h320/IMG_1382.jpeg" title="rental" width="303" /></a></div><p style="text-align: justify;"><span style="font-size: medium;">From time to time a landlord will decide that they wish to sell their rental unit while the tenant remains in possession of the unit. This is perfectly lawful. A landlord may list a rental unit for sale and indeed, may sell the property to a new person without the tenant's agreement or permission. The new owner, once the deal closes, steps into the shoes of the seller and becomes the new landlord of the tenant. Once the sale of the property occurs the former owner ceases to be the landlord and the new owner assumes the obligations of the former owner from the date of acquiring the property. The new owner/landlord is required to honour the same terms and conditions of the tenants lease as the change in ownership does not give the new owner the right to unilaterally change lease terms with the existing tenants.</span></p><p style="text-align: justify;"><span style="font-size: medium;">The process of listing a property for sale raises some serious practical concerns with respect to the tenant's privacy. It comes up in this context. A real estate agent's typical approach when listing a property for sale is firstly to sign a listing agreement that allows the realtor to market the property and reflects the landlord's consent to deal with the rental property for that purpose. The realtor, being contractually obligated to sell and market the property, will reach out to the tenant and seek to establish a relationship and process for gaining access to the rental unit for the purpose of marketing the unit and showing the unit to prospective purchasers. The manner in which the real estate agent does this is often just a reflection of their own experience and manner in dealing with people. There is no specific legal way that realtors are required to approach tenants. While the Residential Tenancies Act provides rules relating to giving notice of entry to the rental unit (<a href="https://www.canlii.org/en/on/laws/stat/so-2006-c-17/latest/so-2006-c-17.html?autocompleteStr=res&autocompletePos=1#sec27subsec1" target="_blank">section 27 RTA</a>), the reality is that the notice of entry provisions are woefully inadequate and do not address the practical realities of showings and the disruption that the showings may cause to the tenants' reasonable enjoyment of the rental unit.</span></p><p style="text-align: justify;"><span style="font-size: medium;">The legal requirements of the <a href="https://canlii.ca/t/55fnc" target="_blank">Residential Tenancies Act</a> (RTA) are technically satisfied if a realtor gives a tenant 24 hour notice of entry in writing. However, and the fact is, that a tenant will likely become increasingly annoyed and less cooperative with multiple notices of entry and upset with the disturbance caused by repeated entries to the unit with strangers looking at buying the property. [the lack of cooperation can take many forms including not making the unit presentable for showing or perhaps not being very hospitable when people come to see the place] It really does make sense for realtors to go above and beyond the strict (and minimal) notice requirements of section 27 RTA and to try to establish acceptable and reasonable times for entry that respect the tenant(s) as much as possible. It is not a one way street however, and tenants should recognize that the landlord has a legal right to enter and show the unit for sale and interference with that right could lead to termination and eviction. Working together towards a reasonable compromise should be the mutual objective of realtor/landlord and tenant.</span></p><p style="text-align: justify;"><i><span style="font-size: medium;">CONFLICT--re taking pictures for marketing purposes</span></i></p><p style="text-align: justify;"><span style="font-size: medium;">A significant source of conflict can arise when the realtor gives notice to enter a rental unit for the purpose of taking photographs and video of the inside of the unit. The purpose of the photos and video is typically to upload to realtor.ca or similar real estate marketing websites to show the property to prospective purchasers. The conflict/anxiety for some tenants is that the video and photographing process captures images of their personal items, and identifying items, that will then be viewable on the internet. Many tenants consider this a massive privacy violation and object to photos being taken. Some tenants are horribly embarrassed when they see pictures of their unit on the internet (and their friends see it too) and those photos reveal intimate details of their personal life. Realtors (and hence landlords) are understandably upset if taking photographs and video is prohibited by tenants who object on privacy grounds. Such an objection curtails marketing efforts and hence the ability to get the most money for the property.</span></p><p style="text-align: justify;"><span style="font-size: medium;">The issue of taking photographs has until now, been mainly discussed in two binding and authoritative appellate decisions from the Ontario Superior Court of Justice, Divisional Court. These cases and numerous decisions of the Ontario Landlord and Tenant Board following have evolved into an almost binary approach to the permissibility of taking pictures and video. The two Divisional Court cases are: <a href="https://www.canlii.org/en/on/onscdc/doc/2015/2015onsc3893/2015onsc3893.html" target="_blank">Nickoladze v. Bloor Street Investments 2015 ONSC 3893 (CanLII)</a> and <a href="https://canlii.ca/t/gnpl6" target="_blank">Juhasz v. Hymas, 2016 ONSC 1650 (CanLII</a>).</span></p><p style="text-align: justify;"><span style="font-size: medium;">The <i>Nickoladze</i> decision stands for the proposition that a tenant's privacy rights are not engaged when a landlord seeks entry for the purpose of inspecting the rental unit for its condition and taking photographs in furtherance of that ground of entry. The ground of entry referred to in <i>Nickoladze</i> is in section 27(1)(4) RTA. Because the RTA authorizes a landlord to enter a unit for inspection it was determined that the taking of photographs in furtherance of that purpose was acceptable and hence a tenant does not have a right to object to the taking of photographs. Photos and video taken pursuant to this entry ground are typically used in hearings as evidence or to show to contractors for the purpose of getting quotes to do repairs and maintenance.</span></p><p style="text-align: justify;"><span style="font-size: medium;"><i>Juhasz</i>, on the other hand, is an appellate case with a completely different outcome. In this case a tenant objected to a realtor wishing to enter the rental unit to take photographs/video for the purpose of marketing the rental unit (and uploading the photos and video to marketing websites including www.realtor.ca). The tenant refused the landlord taking photos and the question was whether the tenant could be evicted for interfering with and prohibiting the taking of photos by the realtor.</span></p><p style="text-align: justify;"><span style="font-size: medium;">In <i>Juhasz</i>, the Divisional Court, focused on section 27(1)(5) as the ground for entry (and giving notice). That section referred only to the existence of a reasonable reason in the tenancy agreement for entry. Given that <i>Juhasz</i> eventually stands for the proposition that realtors can't take photos if the tenant objects it is quite unfortunate that the Court in <i>Juhasz</i> was never engaged to consider section 27(2) RTA. [a point for perhaps another day].</span></p><p style="text-align: justify;"><span style="font-size: medium;">The <a href="https://canlii.ca/t/gnpl6" target="_blank">Juhasz</a> decision stands for the proposition that the tenant's privacy right is engaged when a landlord seeks to enter a rental unit for the purpose of taking photographs and video for marketing purposes. The Court held that because the privacy right was engaged that the tenant could indeed object (i.e. refuse) and that objection could not be the basis for termination of the tenancy. While in my view the decision is more nuanced than this blunt summary suggests, the application of the legal reasoning in <i>Juhasz</i> in the many Landlord and Tenant Board decisions afterwards citing Juhasz reveals a rather binary approach to photos. If the photos are for inspection (i.e. Nickoladze) then the landlord may take photos, but if the photos were going to be for marketing the rental unit for sale (i.e. Juhasz) then the landlord may <u>not</u> take photographs. As a result, tenants who objected to marketing photos and videos could make sale more difficult and perhaps even stymie the sale process. Preventing the sale (especially of single unit rentals--i.e. single family homes, duplexes, small apartment buildings) could also increase the chances of a rental unit not being purchased by someone who might seek to terminate the tenancy for purchaser's own use.</span></p><p style="text-align: justify;"><span style="font-size: medium;">Hence, the <i>Juhasz</i> precedent has been an effective wrench in a landlord's desire to actively market a rental unit on the internet for sale (notwithstanding the nuanced language within the decision).</span></p><p style="text-align: justify;"><i><b><span style="font-size: medium;">SOMETHING NEW!--the SOFTENING OF JUHASZ</span></b></i></p><p style="text-align: justify;"><span style="font-size: medium;">It remains to be seen how this recent decision of the Court will affect the interpretation of Juhasz. The case is <i><a href="https://canlii.ca/t/jv9b7" target="_blank">Arseneault v. Dogra, 2023 ONSC 763</a>.</i></span></p><p style="text-align: justify;"><span style="font-size: medium;">In this decision the Court makes the clear point that Juhasz is not an absolute prohibition on photographing a rental unit for the purposes of marketing it for sale. The Court indicates that the "facts" really matter and that the privacy elements and concerns need to be strongly engaged and the tenant must object to the photos being taken. There is no absolute prohibition on taking of photographs.</span></p><p style="text-align: justify;"><span style="font-size: medium;">Even if the tenant objects to photos being taken (and identifies privacy concerns), the Court in Arseneault allows that privacy concerns can be addressed through methods such as photoshopping the media to remove the personal identifying items. The Court here, in my view, is aiming for a cooperative approach between landlords/realtors and tenants and a working together to get the media that supports the landlords objective of marketing while protecting the tenants objective of privacy.</span></p><p style="text-align: justify;"><span style="font-size: medium;">The <a href="https://canlii.ca/t/jv9b7" target="_blank">Arseneault v. Dogra</a> case is not a wholesale revisiting of <i>Juhasz</i> but I think it represents a modification or clarification of how Juhasz has been interpreted as an outright prohibition on the taking of video and photos if a tenant objects. I think it is now clear that landlords/realtors may take photos but there must be great sensitivity to privacy concerns and that active steps need to be taken to protect those privacy concerns--with photoshopping as an example of how to prevent a privacy violation. Accordingly, I think the LTB decisions that have been rather absolute with respect to the application of Juhasz will now need to be more inquiring of the privacy rights being sought to be protected and how the landlord/realtor was prepared to accommodate while seeking to market the property for sale.</span></p><p><br /></p><p><br /></p><p><br /></p><p><br /></p><p><br /></p><p><br /></p>Michael K. E. Thielehttp://www.blogger.com/profile/10247495615982921581noreply@blogger.com0tag:blogger.com,1999:blog-6703393754400182307.post-72310984517434216982023-01-05T10:05:00.002-05:002023-01-05T10:05:43.442-05:00How to deal with a Tenant's Non-Payment of Rent<p></p><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><b><span style="font-size: large;">FILLING in an N4 </span></b></div><div class="separator" style="clear: both; text-align: center;"><b><span style="font-size: large;">Notice of Termination for Non-Payment of Rent</span></b></div><div class="separator" style="clear: both; text-align: center;"><span style="text-align: left;"><i>(the eviction process for non-payment of rent in Ontario)</i></span></div><div class="separator" style="clear: both; text-align: center;"><span style="text-align: left;"><i><br /></i></span></div><div class="separator" style="clear: both; text-align: center;"><span style="text-align: left;"><i><br /></i></span></div><div class="separator" style="clear: both; text-align: justify;"><span style="text-align: left;"><span style="font-size: medium;">This blog, with the video, will show you how to begin the process of terminating a tenancy for nonpayment of rent. The video works through a fictional tenancy and presumes arrears of rent. The tenancy in the video is a monthly tenancy in which the rent is due on the first of each month. The monthly rent is $1000. The tenants paid a partial amount in October and then no amount in November, December, and January 2023. The N4 document created in this video uses January 4, 2023, as the date of N4 Form Completion and further has the N4 being served on January 4, 2023, in the mailbox (which is the same as a personal serve, under the door, or by email if there is an agreement to serve by email in the lease). This method of service results in a termination date of January 18, 2023. The video discusses the termination date selection methodology as well.</span></span></div><div class="separator" style="clear: both; text-align: justify;"><span style="font-size: medium;"><br /></span></div><div class="separator" style="clear: both; text-align: justify;"><span style="font-size: medium;">I am hoping that people watching this video will find it useful to follow along and to also insert your own details--or write them down as we work through the process to properly complete an N4 Form.</span></div><div class="separator" style="clear: both; text-align: justify;"><span style="text-align: left;"><span style="font-size: medium;"><br /></span></span></div><div class="separator" style="clear: both; text-align: justify;"><span style="font-size: medium;"><span style="text-align: left;">This is an information video and not a legal advice video/article. There may indeed be unique </span><span style="text-align: left;">circumstances with your tenant. You will always need to ensure that your circumstances apply and that the Ontario Residential Tenancies Act is enforceable with respect to your tenant. It is entirely likely that there may be remaining questions after you have watched this video. I am expecting that I may also have overlooked discussing issues that may be unique to your own circumstances. <span> </span>Feel free to post comments to this blog pointing out issues or asking questions and I will try to answer and respond. Ultimately, this article is intended for the DIY landlord or interested person. For legal advice specific to your facts nothing will replace a direct consultation and retainer of a paralegal or lawyer. However, watching and working through this article and video may at least give you sufficient information and grounding to understand what it is that you will need to do.</span></span></div><div class="separator" style="clear: both; text-align: justify;"><span style="text-align: left;"><br /></span></div><div class="separator" style="clear: both; text-align: justify;"><span style="text-align: left;"><br /></span></div><div class="separator" style="clear: both; text-align: justify;"><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='320' height='266' src='https://www.blogger.com/video.g?token=AD6v5dyfMR47KVYzUIoDIh4x3BKSN4adlVpuLnBJnyZMH68BrOVrxkLKWdjPqrrQAWFBh5wD2k3onCezWpfwJtkFeQ' class='b-hbp-video b-uploaded' frameborder='0'></iframe></div></div><div class="separator" style="clear: both; text-align: justify;"><br /></div><div class="separator" style="clear: both; text-align: justify;"><span style="text-align: left;"><span style="font-size: medium;">As readers of this blog know, I write with the intention of describing the legal processes of the Landlord and Tenant Board under the Residential Tenancies Act. So, while this blog appears to assist landlords against tenants it is worth noting that a tenant facing a termination for non-payment of rent could also find the information useful as the video highlights issues that may also result in an N4 being void. I look forward to your comments.</span></span></div><p></p><p><span><span><span><br /></span></span></span></p><p> </p><p></p><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><br /></div><br /> <p></p>Michael K. E. Thielehttp://www.blogger.com/profile/10247495615982921581noreply@blogger.com0tag:blogger.com,1999:blog-6703393754400182307.post-66191641043101880052023-01-03T15:40:00.002-05:002023-01-03T15:40:21.101-05:00Chasing a former tenant for compensation for damages!<p><b><i><span style="font-size: large;">A former tenant damaged the rental unit. How do you get them to pay for the damages that they caused?</span></i></b><span style="font-size: medium;"> </span></p><p><span style="font-size: medium;"><br /></span></p><p><span style="font-size: medium;">I get this question often enough and the answer today is different than it was a short while ago. The core of the question is whether you have to sue in the Small Claims Court or if you can file a claim at the Ontario Landlord and Tenant Board.</span></p><p><span style="font-size: large;">The old (and not current) rule was that if the tenant was out of possession then you could only pursue a claim in the Courts. Typically that meant the Small Claims Court if the claim was under $35,000.00 (the jurisdictional limit of the Small Claims Court). If the cost of repairs exceeded the sum of $35,000 and you intended to pursue that higher claim (and thought it worthwhile) then you could file a claim in the regular Superior Court of Justice either under the simplified rules or regular rules. Claims for amounts in the Superior Court but not Small Claims Court are best pursued by hiring a lawyer (you can not retain a paralegal for such claims).</span></p><p><span style="font-size: medium;"><br /></span></p><p><span style="font-size: medium;"><i><b>THE CURRENT LAW</b></i></span></p><p><span style="font-size: medium;">Today, the current rule is that you must file a claim for damage to the rental unit against a <u>former</u> tenant at the Ontario Landlord and Tenant Board if the damages were caused by the tenant during the course of their tenancy. Note that “tenant” includes another occupant or other person permitted in the residential complex by the tenant. The damage caused by the tenant also, to be recoverable, must have arisen from willful or negligent conduct and the damage must be “undue”. </span></p><p><span style="font-size: medium;">How did this happen? The Ontario legislature amended <a href="https://www.canlii.org/en/on/laws/stat/so-2006-c-17/latest/so-2006-c-17.html?autocompleteStr=resid&autocompletePos=1#sec89subsec1" target="_blank">section 89</a> of the <a href="https://www.canlii.org/en/on/laws/stat/so-2006-c-17/latest/so-2006-c-17.html?autocompleteStr=resid&autocompletePos=1#part_i_introduction_417" target="_blank">Residential Tenancies Act</a> to include former tenants and now the Landlord and Tenant Board has jurisdiction over these former tenants for actions taken during the tenancy. The fact that the LTB has jurisdiction over these former tenants for these kinds of claims has also now clarified that the Small Claims Court no longer has that jurisdiction (except for transitional cases that were ongoing at the time of the legislative amendments).</span></p><p><span style="font-size: large;">It is important to recognize that the ability to file a claim against former tenants at the LTB comes with a shorter than expected limitation period of one year (see RTA section 89 (1.1)). The usual 2 year limitation period that typically applied for claims in the Superior Court seems to have been shortened. Though, arguably the one year period is clearer in that the period runs from the date that the tenant gave up possession and not from when the damage was done.</span></p><p><span style="font-size: medium;">The Form that you will be using to file with the Ontario Landlord and Tenant Board against the former tenant is the <a href="https://tribunalsontario.ca/ltb/forms/" target="_blank">Form L10</a>. For those wondering if there are other claims that can now be made against former tenants at the LTB take a quick look through the forms because indeed there are–including rent arrears.</span></p><p><span style="font-size: medium;">And lastly, if you are in the unfortunate position that your former tenant caused more than $35K worth of damage and it is indeed worthwhile to sue (because recovery seem possible) then you may still file a claim in the Superior Court of Justice. Whether such a claim is time limited to one year from the date of the tenant vacating the unit is not entirely clear.</span></p><p><span style="font-size: medium;"> </span></p>Michael K. E. Thielehttp://www.blogger.com/profile/10247495615982921581noreply@blogger.com8tag:blogger.com,1999:blog-6703393754400182307.post-57798062826604882902022-12-30T14:01:00.004-05:002023-01-01T07:42:34.732-05:00COSTS when tenants refuse to move out (N12--Purchaser's Own Use)<p><br /></p><p><b><span style="font-size: medium;">SOME BACKGROUND TO Ontario Leases</span></b></p><p><span style="font-size: medium;">There are very few not for cause grounds to terminate a tenancy of tenants in Ontario. If a tenant(s) fulfills the requirements of the lease, pays rent, and otherwise does not breach the <i>Residential Tenancies Act</i> the tenant is entitled to remain in the rental unit indefinitely. Indefinitely <u>does</u> mean “forever” and not just until the end of the fixed term of a lease. Once a lease term expires, and absent an agreement to enter into another fixed term, the lease in Ontario renews on a monthly basis on the exact same terms as the original lease (whether the landlord likes it or not). This concept can be difficult to appreciate as the idea of entering into a 1 year lease–surely means that the lease goes for 1 year and not indefinitely. If you need to read the law to believe it you will find it in <a href="https://www.canlii.org/en/on/laws/stat/so-2006-c-17/latest/so-2006-c-17.html?autocompleteStr=reside&autocompletePos=1#sec38subsec1" target="_blank">section 38</a> of the Residential Tenancies Act. </span></p><p><span style="font-size: medium;"><br /></span></p><p><span style="font-size: medium;">The only party (as between landlord or tenant) to the lease contract that may terminate the lease on “notice” (i.e. by giving 60 days notice in writing) is the tenant. A landlord has no legal right to terminate a lease by giving 60 days notice unless the reason for the termination is <u>specifically</u> set out and endorsed in the <i>Residential Tenancies Act</i>.</span></p><p><span style="font-size: medium;"><br /></span></p><p><span style="font-size: medium;">You might expect that the <a href="https://www.canlii.org/en/on/laws/stat/so-2006-c-17/latest/so-2006-c-17.html?autocompleteStr=reside&autocompletePos=1" target="_blank">Residential Tenancies Act</a> would set out a basis for a landlord to terminate a tenancy on somewhat general grounds. I’m often asked or told by a landlord that they just don’t want to be a landlord anymore or that they don’t like the tenants and would rather just end the relationship and find someone new that they get along with or that they could get a whole lot more rent if the current tenant would move out. Philosophically, there isn’t anything wrong with these reasons to terminate and the law could allow it–except that in Ontario, these grounds for termination are not legal. Other provinces and some American states do give landlords the authority to end a lease after the expiry of a lease term. That is a policy choice of the respective legislature. In Ontario, the legal framework supports a tenancy continuing indefinitely until the tenant decides to give a Notice of Termination or the tenant breaches some aspect of the <i>Residential Tenancies Act</i> that justifies termination of the tenancy.</span></p><p><span style="font-size: medium;"><br /></span></p><p><span style="font-size: large;"><b>ARE THERE ANY <u>NO FAULT</u></b> reasons to terminate a tenancy?</span></p><p><span style="font-size: medium;"><br /></span></p><p><span style="font-size: large;">Yes, there are 2 main forms<a href="https://tribunalsontario.ca/ltb/forms/" target="_blank"> (Form N12, and Form N13</a>) that support no fault termination of a tenancy. Each form contains different reasons for termination (though each reason is similar in nature). Today I am writing about the N12 Form, and then specifically about what happens in the process when a tenant resists the termination of the tenancy and does not move out</span><span style="font-size: medium;">.</span></p><p><span style="font-size: large;">The Form N12 has a bit of a notorious history. It is the Form that is used when the landlord wants to terminate the tenancy for the landlord’s own use or also if the landlord has sold the property and seeks to terminate the tenancy for the purchaser’s own use. This Form N12, and the basis for termination contain highly technical and detailed obligations that must be perfectly complied with by the landlord failing which the N12 form is void and incapable of supporting a termination.</span></p><p><span style="font-size: large;">So why is the N12 Form notorious? It is notorious because it was (or is) one of the most abused and mis-used grounds for termination under the <i>Residential Tenancies Act</i>. This has happened because Landlords have no other basis to end a relationship with a tenant who is otherwise following the lease and complying with their obligations under the <i>Residential Tenancies Act</i>. Therefore, when a landlord wants to terminate a tenancy to: 1) raise the rent to reflect market rents, 2) rent to tenants they like, 3) move in, 4) let a purchaser move in, 5) renovate and re-rent at higher rent to cover higher expenses, 6) pick whatever other reason that doesn’t involve tenant behaviour that you can imagine, then the N12 is employed to do the “legal heavy lifting” whether the actual reason for terminating and evicting is lawful or not. The N12 is often used to terminate a tenancy and evict a tenant for a lawful reason (such as Landlord’s Own Use) but once vacant possession is obtained the landlord doesnt actually move in. Instead, the landlord does what they actually wanted to do all along--which could be to re-rent, renovate, get more rent, etc.. </span></p><p><span style="font-size: large;">The mis-use or abuse of the N12 led to tightening laws, more stringent requirements being put into the law, a tenant compensation requirement, and further limiting grounds for landlord's own use being imposed. The government, and frankly everyone involved in Landlord and Tenant Board proceedings, was aware of how the N12 was being misused by some landlords and the governmental response to that misuse ended up costing all landlords more money with stricter and more onerous legislative requirements.</span></p><p><span style="font-size: medium;"><br /></span></p><p><b><span style="font-size: medium;">PURCHASER’S OWN USE (<a href="https://www.canlii.org/en/on/laws/stat/so-2006-c-17/latest/so-2006-c-17.html?autocompleteStr=reside&autocompletePos=1#sec49subsec1" target="_blank">section 49 RTA</a>) </span></b></p><p><span style="font-size: medium;"><br /></span></p><p><span style="font-size: medium;">The N12 is the form that is used when a landlord sells a property to a purchaser and the purchaser wants to live in the rental unit. The N12 Form requires that a tenant be provided 60 days notice and compensation equal to one month’s rent (payable before the termination date). </span></p><p><span style="font-size: medium;"><br /></span></p><p><span style="font-size: medium;">There is a huge misconception by landlords and the public generally about the 60 day notice given in the Form N12. The misconception is that the tenant must actually move out by the termination date. This could not be further from the truth. There is a misconception that if a tenant does not move out in accordance with the Form N12 (i.e. by the termination date) that they are doing something “wrong” and therefore can be sued or punished for refusing to move out. This too is a complete fallacy and could not be further from the truth.</span></p><p><span style="font-size: medium;">Whether you agree with the process or not, it is important to appreciate the specific legal rights of the landlord and the tenants in the period of time following the service of the N12 Form. For the purpose of this article, let’s presume that the Notice period is properly given (60 days to the end of term) and the landlord has indeed paid the tenant compensation equal to one month’s rent <a href="https://www.canlii.org/en/on/laws/stat/so-2006-c-17/latest/so-2006-c-17.html?autocompleteStr=reside&autocompletePos=1#sec49.1subsec1" target="_blank">as required</a>.[section 49.1 RTA] </span></p><p><span style="font-size: large;">With the technical requirements met, does the tenant have to move out in accordance with the N12 Form? In a word: “No”.</span></p><p><span style="font-size: medium;">My statement that the tenant does not have to move out is not a matter of opinion. The law is crystal clear. Also, for comfort to any tenant stressing out over this issue–take a look at page 2 of the N12 Form (in the fine print). There is a statement there that says: “<i>What if you disagree with the notice?”</i>. The answer in the form (i.e. what the Landlord and Tenant Board is telling tenants), is “<i> You do not have to move out if you disagree with what the landlord has put in this notice. However, the landlord can apply to the LTB to evict you. The LTB will schedule a hearing where you can explain why you disagree”</i>. </span></p><p><span style="font-size: medium;"><br /></span></p><p><span style="font-size: medium;">There should be no question then that a tenant(s) has an absolute right to remain in possession in the rental unit even after an N12 is served. Further, there is absolutely no question that the terms of the tenancy continue and that the landlord must continue to fulfill its obligations under the <i>Residential Tenancies Act</i> and the tenant must do the same. In the event that either landlord or tenant breach their obligations under the lease or the <i>Residential Tenancies Act</i>, while the N12 and Application to the Landlord and Tenant Board (Form L2) is pending, the remedy for those breaches is to commence legal proceedings using the other applicable forms or applications. Unlike the Superior Court where motions can be brought to address issues within an application, there is no equivalent remedy in Ontario Landlord and Tenant Board proceedings. By example to explain what I mean by this, if a tenant fails to pay rent after the termination date in the N12 Form, and the landlord has applied to the LTB and is waiting for a hearing date, there is nothing that can be done at the LTB in the application, as filed, to address non-payment of rent on an interim basis. If a landlord needs to address the non-payment of rent the landlord should serve a Form N4 and follow the usual process. Yes, this means that an entirely separate legal process needs to be started. In my opinion, it is foolish not to start the proceeding as there are never any guarantees with any single application. Another example of breach while waiting for a hearing can occur if the landlord ceases to provide services or fails to repair or maintain the unit after the termination date in the N12 but before the application is heard at the LTB. If this occurs the tenant can file a T2 (Tenant’s Rights) or T6 (Maintenance) application. There is no remedy available to the tenant in the N12/L2 application that is pending for any breaches by the landlord. [Do note that tenants have more recourse for landlord breaches through different channels such as Property Standards or the Housing Enforcement Unit].</span></p><p><span style="font-size: medium;"><br /></span></p><p><b><span style="font-size: medium;">LEGAL THREATS</span></b></p><p><span style="font-size: large;">I can now come to the point of what I intended to write about. It is not uncommon for landlords and their legal representatives to threaten tenants with legal action for failing to move out in accordance with the N12 Notice of Termination. The threat is often shocking in its scope and very worrying to tenants. The threat will come in a legal letter or email and it often says something along the lines that the tenant will be held financially responsible for any losses suffered by the landlord for that time period after the termination date in the N12 if the tenant does not move out immediately. </span></p><p><span style="font-size: large;">For N12's based on purchaser’s own use the legal threat will often state that the tenant will be held responsible for all costs associated with the real estate transaction. Potentially for the expenses incurred by the purchaser, potentially for the loss of the sale transaction, potentially for the losses incurred in having to compensate the purchaser for breaching the Agreement of Purchase and Sale. There is often an estimate put to the damages that will be claimed and these can be wildly high–into the millions of dollars. Of course, this is upsetting and concerning and therefore designed to pressure a tenant(s) to vacate a rental unit as soon as possible to avoid the threat of being sued.</span></p><p><span style="font-size: large;">It is noteworthy that the “damages” that a landlord/vendor or purchaser claims will be incurred will in fact have the ring of truth or in fact be “real”. A landlord who can not deliver vacant possession on a closing date may in fact be liable to the purchaser for damages sustained. A landlord who is unable (but required) to deliver vacant possession may lose the sale and suffer the financial loss (profit) in the sale. Purchaser’s may indeed incur costs because they can’t move in. There are a lot of financial consequences for the landlord and the purchaser if they did not take into account a tenant’s right to remain in occupation (and continue the tenancy) until the Landlord and Tenant Board hears the case.</span></p><p><span style="font-size: large;">Another nuanced consideration is that landlords and purchasers often presume that getting an Order terminating and evicting a tenant for an N12 is a foregone conclusion once the case reaches the Hearing stage before the Ontario Landlord and Tenant Board. This is a foolish assumption. There are several defences to an N12 application and the strict requirements of the N12 are not without hardship to meet. On top of that, the Ontario Landlord & Tenant Board continues to retain a discretion under </span><a href="https://www.canlii.org/en/on/laws/stat/so-2006-c-17/latest/so-2006-c-17.html?autocompleteStr=reside&autocompletePos=1#sec83subsec1" style="font-size: large;" target="_blank">section 83</a><span style="font-size: large;"> to refuse to terminate a tenancy or delay the termination of a tenancy even if the N12 is otherwise valid.</span></p><p><span style="font-size: large;">This means that a landlord who is contemplating selling a property that contains a tenant in a lease covered by the <i>Residential Tenancies Act</i> should be incorporating very explicit terms in the Agreement and Purchase and Sale to deal with the possibility of a tenant not moving out or being unable to deliver vacant possession on a fixed closing date. There are a number of options in how to contemplate and provide for it. The worst thing for the landlord (and purchaser) is to not address the possibility squarely and simply hope that the tenant will vacate. When “nothing” is done the standard OREA Form (real estate standard Agreement of Purchase and Sale) will typically leave the vendor landlord in worse legal shape than the purchaser but the purchaser will suffer the reality of not being able to occupy the property on the closing date.</span></p><p><span style="font-size: large;">Is it absolutely clear that a residential tenant can not be held liable for damages for refusing or failing to move out pursuant to a valid Form N12? In my opinion there is no doubt as the wording of the </span><i style="font-size: large;">Residential Tenancies Act</i><span style="font-size: large;"> sections make it clear, as does the Form N12, that a tenant has the right to have a hearing. The circumstance of a tenant being pursued for damages was actually considered in the case of </span><a href="https://www.canlii.org/en/on/onscdc/doc/2021/2021onsc4661/2021onsc4661.html?autocompleteStr=PE%20rea&autocompletePos=1" style="font-size: large;" target="_blank">PE Real Estate Solutions Inc. v. Kelly, 2021 ONSC 466</a><span style="font-size: large;">1. The landlord/vendor won against the tenant in the Small Claims Court but that decision was overturned on Appeal to the Divisional Court. In this decision the Court clearly reviews the tenants’ right to continue to occupy the rental unit after the termination date in the N12 and to have a hearing at the LTB and that doing so does not attract any liability for the types of damages that the landlord or purchaser sustains</span></p>Michael K. E. Thielehttp://www.blogger.com/profile/10247495615982921581noreply@blogger.com0tag:blogger.com,1999:blog-6703393754400182307.post-90856990435971137112021-04-17T17:35:00.001-04:002021-04-17T17:35:22.597-04:00Zoom Recordings and sharing them. Privacy in public meetings of private entities.<p> <b style="caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 17px; orphans: 2; widows: 2;"><i>SO THE ZOOM YOU ATTENDED WAS RECORDED.</i></b></p><p style="font-family: Times; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><span style="color: #333333; font-family: arial;">How Co-op members meet to conduct the business of a Co-op has changed due to Covid as has the manner of meetings of all sorts of organizations. Virtual meetings bring about challenges and they are certainly not a perfect replacement for live face to face meetings. A recurring issue, in Co-op's and all other forums in which "virtual" is replacing in person is the ability of persons to participate. Not everyone has the technology nor the ability to navigate the virtual processes.</span><span style="color: #333333; font-family: arial; font-size: 17px;"> </span></p><p style="font-family: Times; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><span style="font-family: arial;">A question that has arisen in many contexts is about the digital recordings of the virtual proceedings. Can those be shared? Do members of a Co-op have the right to see them? Does it all depend on the purpose for which the recordings were created? Can you use the recordings to further the business of the Co-op by sharing them more widely to get input from other members who are not able to participate remotely?</span></p><p style="font-family: Times; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><span style="font-family: arial;">I'm not sure that there is a wholly satisfactory answer but here at least is a start to an analysis and answer for your consideration.</span></p><p style="font-family: Times; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><span style="caret-color: rgb(51, 51, 51); color: #333333;"><span style="font-family: arial; font-size: medium;"><b>ISSUE</b></span></span></p><p style="font-family: Times; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><span style="font-family: arial;"><span style="caret-color: rgb(51, 51, 51); color: #333333; font-size: 17px;">An Ontario Non-Profit Housing Co-operative will digitally record members meetings including those parts of members meetings conducted on ZOOM etc.. After the meetings the Co-op will make the recordings available to the Co-op membership. Is this lawful and are there any privacy right concerns respecting the distribution of the recordings of the meetings? Nothing is recorded secretly.</span> </span></p><p style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 17px; font-variant-ligatures: normal; line-height: 1.8em; margin: 15px 0px; orphans: 2; text-decoration-thickness: initial; widows: 2;"></p><p style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 17px; font-variant-ligatures: normal; line-height: 1.8em; margin: 15px 0px; orphans: 2; text-decoration-thickness: initial; widows: 2;"></p><div class="memo_heading" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-variant-ligatures: normal; margin-bottom: 10px; margin-top: 30px; orphans: 2; text-decoration: underline; widows: 2;"><span style="font-family: arial; font-size: medium;"><b>Conclusion:</b></span></div><div class="conclusion_block" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><p style="box-sizing: border-box; font-size: 17px; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">The Government of Ontario enacted temporary replacement provisions of the <em style="box-sizing: border-box;"><a class="authLink" href="https://www.canlii.org/en/on/laws/stat/rso-1990-c-c35/latest/rso-1990-c-c35.html" style="box-sizing: border-box; color: #337ab7; cursor: pointer; text-decoration-line: none;">Co-operative Corporations Act</a> </em>during the COVID-19 pandemic, including: meeting of electronic means, suspension of in person voting, voting by electronic means, election of directors by electronic means, and electronic meetings for Boards and Executive committees. (<a class="authLink" href="https://www.canlii.org/en/on/laws/stat/rso-1990-c-c35/latest/rso-1990-c-c35.html" style="box-sizing: border-box; color: #337ab7; cursor: pointer; text-decoration-line: none;"><em style="box-sizing: border-box;">Co-operative Corporations Act</em></a>; <a class="authLink" href="https://www.canlii.org/en/on/laws/regu/o-reg-543-20/latest/o-reg-543-20.html" style="box-sizing: border-box; color: #337ab7; cursor: pointer; text-decoration-line: none;"><em style="box-sizing: border-box;">O Reg 543/20</em></a>)</span></p></div><div class="conclusion_block" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><p style="box-sizing: border-box; font-size: 17px; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Principle 3 of Schedule 1 of <em style="box-sizing: border-box;"><a class="authLink" href="https://www.canlii.org/en/ca/laws/stat/sc-2000-c-5/latest/sc-2000-c-5.html" style="box-sizing: border-box; color: #337ab7; cursor: pointer; text-decoration-line: none;">Personal Information Protection and Electronic Documents Act</a> </em>provides that the knowledge and consent of an individual are required for the collection, use, or disclosure of personal information, except where inappropriate. (<a class="authLink" href="https://www.canlii.org/en/ca/laws/stat/sc-2000-c-5/latest/sc-2000-c-5.html" style="box-sizing: border-box; color: #337ab7; cursor: pointer; text-decoration-line: none;"><em style="box-sizing: border-box;">Personal Information Protection and Electronic Documents Act</em></a>)</span></p></div><div class="conclusion_block" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><p style="box-sizing: border-box; font-size: 17px; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Ontario does not have any privacy legislation that is applicable to the private sector. However, the federal <a class="authLink" href="https://www.canlii.org/en/ca/laws/stat/sc-2000-c-5/latest/sc-2000-c-5.html" style="box-sizing: border-box; color: #337ab7; cursor: pointer; text-decoration-line: none;"><em style="box-sizing: border-box;">Personal Information Protection and Electronic Documents Act</em></a> applies to private sector organizations that are not federally regulated, as well as federally-regulated organizations, in respect of personal information that the organization collects, uses or discloses in the course of commercial activities. "Personal information" is defined as information about an identifiable individual. (<a class="authLink" href="https://www.canlii.org/en/ca/laws/stat/sc-2000-c-5/latest/sc-2000-c-5.html" style="box-sizing: border-box; color: #337ab7; cursor: pointer; text-decoration-line: none;"><em style="box-sizing: border-box;">Personal Information Protection and Electronic Documents Act</em></a>; <a class="authLink" href="https://www.priv.gc.ca/en/privacy-topics/privacy-laws-in-canada/02_05_d_15/" style="box-sizing: border-box; color: #337ab7; cursor: pointer; text-decoration-line: none;"><em style="box-sizing: border-box;">Summary of privacy laws in Canada</em></a>)</span></p></div><div class="conclusion_block" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><p style="box-sizing: border-box; font-size: 17px; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">No cases were identified where the courts commented on whether virtual meetings under the <a class="authLink" href="https://www.canlii.org/en/on/laws/stat/rso-1990-c-c35/latest/rso-1990-c-c35.html" style="box-sizing: border-box; color: #337ab7; cursor: pointer; text-decoration-line: none;"><em style="box-sizing: border-box;">Co-operative Corporations Act</em></a> engaged any privacy rights.</span></p></div><div class="conclusion_block" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><p style="box-sizing: border-box; font-size: 17px; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">There are four recognized common law privacy torts in Canada:</span></p><blockquote style="border: none; box-sizing: border-box; font-size: 17px; line-height: 1.5em; margin: 0px 30px; padding: 0px 20px;"><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">1. Intrusion upon seclusion (<em style="box-sizing: border-box;"><a class="authLink" href="https://www.canlii.org/en/on/onca/doc/2012/2012onca32/2012onca32.html" style="box-sizing: border-box; color: #337ab7; cursor: pointer; text-decoration-line: none;">Jones v. Tsige</a></em>).</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">2. Public disclosure of private facts (<a class="authLink" href="https://www.canlii.org/en/on/onsc/doc/2016/2016onsc4920/2016onsc4920.html" style="box-sizing: border-box; color: #337ab7; cursor: pointer; text-decoration-line: none;"><em style="box-sizing: border-box;">Doe v N.D.</em></a>, <em style="box-sizing: border-box;"><a class="authLink" href="https://www.canlii.org/en/on/onsc/doc/2018/2018onsc6607/2018onsc6607.html" style="box-sizing: border-box; color: #337ab7; cursor: pointer; text-decoration-line: none;">Jane Doe 72511 v. N.M.</a></em>)</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">3. Publicity Placing Person in False Light (<em style="box-sizing: border-box;"><a class="authLink" href="https://www.canlii.org/en/on/onsc/doc/2019/2019onsc7279/2019onsc7279.html" style="box-sizing: border-box; color: #337ab7; cursor: pointer; text-decoration-line: none;">Yenovkian v. Gulian</a></em>).</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">4. Appropriation, for the defendant's advantage, of the plaintiff's name or likeness. (<em style="box-sizing: border-box;"><a class="authLink" href="https://www.canlii.org/en/on/onca/doc/2012/2012onca32/2012onca32.html" style="box-sizing: border-box; color: #337ab7; cursor: pointer; text-decoration-line: none;">Jones v. Tsige</a></em>)</span></p></blockquote></div><div class="conclusion_block" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><p style="box-sizing: border-box; font-size: 17px; line-height: 1.8em; margin: 15px 0px;"><em style="box-sizing: border-box;"><span style="font-family: arial;">Intrusion Upon Seclusion</span></em></p><p style="box-sizing: border-box; font-size: 17px; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">One who intentionally intrudes, physically or otherwise, upon the seclusion of another or his private affairs or concerns, is subject to liability to the other for intrusion upon seclusion, if the invasion would be highly offensive to a reasonable person. The tort is applicable to intrusions, both physical and non-physical, into the plaintiff's private affairs, and does not require publication or dissemination of information learned through the intrusion. The tort of intrusion upon seclusion consists of three elements:</span></p><blockquote style="border: none; box-sizing: border-box; font-size: 17px; line-height: 1.5em; margin: 0px 30px; padding: 0px 20px;"><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">1. The defendant's conduct must be intentional, which would include reckless conduct</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">2. The defendant must have invaded, without lawful justification, the plaintiff's private affairs or concerns; and</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">3. That a reasonable person would regard the invasion as highly offensive causing distress, humiliation or anguish (<a class="authLink" href="https://www.canlii.org/en/on/onca/doc/2012/2012onca32/2012onca32.html" style="box-sizing: border-box; color: #337ab7; cursor: pointer; text-decoration-line: none;"><em style="box-sizing: border-box;">Jones v. Tsige</em></a>)</span></p></blockquote></div><div class="conclusion_block" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><p style="box-sizing: border-box; font-size: 17px; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Proof of harm to a recognized economic interest is not an element of the cause of action. A claim for intrusion upon seclusion will arise only for deliberate and significant invasions of personal privacy. Claims from individuals who are sensitive or unusually concerned about their privacy are excluded: it is only intrusions into matters such as one's financial or health records, sexual practises and orientation, employment, diary or private correspondence that, viewed objectively on the reasonable person standard, can be described as highly offensive. (<a class="authLink" href="https://www.canlii.org/en/on/onca/doc/2012/2012onca32/2012onca32.html" style="box-sizing: border-box; color: #337ab7; cursor: pointer; text-decoration-line: none;"><em style="box-sizing: border-box;">Jones v. Tsige</em></a>)</span></p></div><div class="conclusion_block" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><p style="box-sizing: border-box; font-size: 17px; line-height: 1.8em; margin: 15px 0px;"><em style="box-sizing: border-box;"><span style="font-family: arial;">Public Disclosure of Private Facts</span></em></p><p style="box-sizing: border-box; font-size: 17px; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Public disclosure of private facts deals with the situation in which one gives publicity to a matter concerning the private life of another, if the matter publicized or the act of the publication (a) would be highly offensive to a reasonable person, and (b) is not of legitimate concern to the public. (<a class="authLink" href="https://www.canlii.org/en/on/onsc/doc/2016/2016onsc4920/2016onsc4920.html" style="box-sizing: border-box; color: #337ab7; cursor: pointer; text-decoration-line: none;"><em style="box-sizing: border-box;">Doe v N.D.</em></a>; <a class="authLink" href="https://www.canlii.org/en/on/onsc/doc/2018/2018onsc6607/2018onsc6607.html" style="box-sizing: border-box; color: #337ab7; cursor: pointer; text-decoration-line: none;"><em style="box-sizing: border-box;">Jane Doe 72511 v. N.M.</em></a>)</span></p></div><div class="conclusion_block" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><p style="box-sizing: border-box; font-size: 17px; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">To establish liability, the plaintiff must therefore prove that:</span></p><blockquote style="border: none; box-sizing: border-box; font-size: 17px; line-height: 1.5em; margin: 0px 30px; padding: 0px 20px;"><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(a) the defendant publicized an aspect of the plaintiff's private life;</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(b) the plaintiff did not consent to the publication;</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(c) The matter publicized or its publication would be highly offensive to a reasonable person; and</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(d) The publication was not of legitimate concern to the public. (<a class="authLink" href="https://www.canlii.org/en/on/onsc/doc/2018/2018onsc6607/2018onsc6607.html" style="box-sizing: border-box; color: #337ab7; cursor: pointer; text-decoration-line: none;"><em style="box-sizing: border-box;">Jane Doe 72511 v. N.M.</em></a>)</span></p></blockquote></div><div class="conclusion_block" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><p style="box-sizing: border-box; font-size: 17px; line-height: 1.8em; margin: 15px 0px;"><em style="box-sizing: border-box;"><span style="font-family: arial;">Publicity Placing Person in False Light</span></em></p><p style="box-sizing: border-box; font-size: 17px; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">One who gives publicity to a matter concerning another that places the other before the public in a false light is subject to liability to the other for invasion of his privacy, if</span></p><blockquote style="border: none; box-sizing: border-box; font-size: 17px; line-height: 1.5em; margin: 0px 30px; padding: 0px 20px;"><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(a) the false light in which the other was placed would be highly offensive to a reasonable person, and</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(b) the actor had knowledge of or acted in reckless disregard as to the falsity of the publicized matter and the false light in which the other would be placed. (<a class="authLink" href="https://www.canlii.org/en/on/onsc/doc/2019/2019onsc7279/2019onsc7279.html" style="box-sizing: border-box; color: #337ab7; cursor: pointer; text-decoration-line: none;"><em style="box-sizing: border-box;">Yenovkian v. Gulian</em></a>)</span></p></blockquote></div><div class="conclusion_block" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><p style="box-sizing: border-box; font-size: 17px; line-height: 1.8em; margin: 15px 0px;"><em style="box-sizing: border-box;"><span style="font-family: arial;">Appropriation, for the defendant's advantage, of the plaintiff's name or likeness</span></em></p><p style="box-sizing: border-box; font-size: 17px; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">The tort of misappropriation of personality is now well recognized in Canada, but is relatively undeveloped given the few cases in which it has been raised. It was first recognized and applied in three cases in the 1970s and 1980s. (<a class="authLink" href="https://www.canlii.org/en/on/onca/doc/2012/2012onca32/2012onca32.html" style="box-sizing: border-box; color: #337ab7; cursor: pointer; text-decoration-line: none;"><em style="box-sizing: border-box;">Jones v. Tsige</em></a>)</span></p></div><p style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 17px; font-variant-ligatures: normal; line-height: 1.8em; margin: 15px 0px; orphans: 2; text-decoration-thickness: initial; widows: 2;"></p><p style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 17px; font-variant-ligatures: normal; line-height: 1.8em; margin: 15px 0px; orphans: 2; text-decoration-thickness: initial; widows: 2;"></p><div class="memo_heading" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 17px; font-variant-ligatures: normal; margin-bottom: 10px; margin-top: 30px; orphans: 2; text-decoration: underline; widows: 2;"><span style="font-family: arial;">Facts:</span></div><p style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 17px; font-variant-ligatures: normal; line-height: 1.8em; margin: 15px 0px; orphans: 2; text-decoration-thickness: initial; widows: 2;"><span style="font-family: arial;">An Ontario Non-Profit Housing Co-operative has members who are unable to participate in member meetings on internet platforms. Some members lack the technology, some are wary of computers, some don't trust the digital tools; yet these members do want to participate in their Co-op and in some cases the Co-op By-Laws require participation in the business of the Co-op. The members are unable to participate in person because of pandemic meeting restrictions. In the past, members met in the Co-op's common room for meetings. The Co-op operates under the Co-operative Corporations Act. The Co-op's Board of directors has adopted a complex meeting structure with partial participation virtually and partially on paper with members in their homes through sharing the virtual meeting through transcripts of the meeting, DVD of the meeting, and online links to the meeting. The meeting occurs over several days, the agenda, documents, comments, are distributed to all who indicate that they wish to participate and the home based members write their responses for distribution back to the secretary. Votes are by secret paper ballot and not during the virtual part of the meeting. This complex process is adopted because virtual meetings have reduced participation to 20% of normal participation. This is barely a quorum and unhealthy. Is sharing recordings of the virtual meetings lawful? All participants in the virtual meeting are informed that the meeting is recorded and will be shared. Virtual participants do not have to have their camera's on and do not have to speak. Platform chat features are activated to allow virtual participants to participate in writing. The Co-op Board is concerned that an exclusively virtual process is disenfranchising Members and hence the need to mix virtual with paper and documents delivered to members' homes. Members at home send in replies, make comments, and their comments are shared with all members including virtual participants. </span></p><p style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 17px; font-variant-ligatures: normal; line-height: 1.8em; margin: 15px 0px; orphans: 2; text-decoration-thickness: initial; widows: 2;"></p><p style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 17px; font-variant-ligatures: normal; line-height: 1.8em; margin: 15px 0px; orphans: 2; text-decoration-thickness: initial; widows: 2;"></p><div class="memo_heading" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 17px; font-variant-ligatures: normal; margin-bottom: 10px; margin-top: 30px; orphans: 2; text-decoration: underline; widows: 2;"><span style="font-family: arial;">Law:</span></div><div class="abstract" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><p style="box-sizing: border-box; font-size: 17px; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">The Government of Ontario made temporary changes to the provisions of the <a class="authLink" href="https://www.canlii.org/en/on/laws/stat/rso-1990-c-c35/latest/rso-1990-c-c35.html" style="box-sizing: border-box; color: #337ab7; cursor: pointer; text-decoration-line: none;"><em style="box-sizing: border-box;">Co-operative Corporations Act</em>, RSO 1990, c C.35</a> that permitted co-operative corporations governed under the statute to call and hold meetings virtually, as applicable, notwithstanding certain restrictions or requirements:</span></p></div><div class="passage" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><blockquote style="border: none; box-sizing: border-box; font-size: 17px; line-height: 1.5em; margin: 0px 30px; padding: 0px 20px;"><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Meeting by Electronic Means, Members’ Meetings</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">1 The operation of <a href="https://www.canlii.org/en/on/laws/stat/rso-1990-c-c35/latest/rso-1990-c-c35.html#sec74subsec3_smooth" style="box-sizing: border-box; color: black; cursor: pointer; text-decoration-line: none;" target="_blank">subsections 74 (3)</a> to <a href="https://www.canlii.org/en/on/laws/stat/rso-1990-c-c35/latest/rso-1990-c-c35.html#sec74subsec5_smooth" style="box-sizing: border-box; color: black; cursor: pointer; text-decoration-line: none;" target="_blank">(5)</a> of the Act is temporarily suspended and the following replacement provisions are in effect during the temporary suspension period only:</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Meeting by electronic means</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(3) Whether or not the articles or by-laws of a co-operative so provide, a meeting of the members of a co-operative, including a meeting of the members of a non-profit housing co-operative, may be held by telephonic or electronic means by which all members participating in the meeting can hear each other, and a member who, through those means, votes at the meeting or establishes a communications link to the meeting is deemed for the purposes of this Act to be present at the meeting.</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Same</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(4) A meeting held under subsection (3) is deemed to be held at the place where the head office of the co-operative is located.</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Definition of “telephonic or electronic means”</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(5) For the purposes of this section and <a href="https://www.canlii.org/en/on/laws/stat/rso-1990-c-c35/latest/rso-1990-c-c35.html#sec75_smooth" style="box-sizing: border-box; color: black; cursor: pointer; text-decoration-line: none;" target="_blank">sections 75</a>, <a href="https://www.canlii.org/en/on/laws/stat/rso-1990-c-c35/latest/rso-1990-c-c35.html#sec76_smooth" style="box-sizing: border-box; color: black; cursor: pointer; text-decoration-line: none;" target="_blank">76</a> and<a href="https://www.canlii.org/en/on/laws/stat/rso-1990-c-c35/latest/rso-1990-c-c35.html#sec90_smooth" style="box-sizing: border-box; color: black; cursor: pointer; text-decoration-line: none;" target="_blank"> 90</a>,</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">“telephonic or electronic means” means telephone calls or messages, facsimile messages, electronic mail, transmission of data or information through automated touch-tone telephone systems, transmission of data or information through computer networks, any other similar means or any other prescribed means.</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">2 The operation of <a href="https://www.canlii.org/en/on/laws/stat/rso-1990-c-c35/latest/rso-1990-c-c35.html#sec75subsec3_smooth" style="box-sizing: border-box; color: black; cursor: pointer; text-decoration-line: none;" target="_blank">subsection 75 (3)</a> of the Act is temporarily suspended and the following replacement provisions are in effect during the temporary suspension period only:</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Poll</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(3) If a poll is demanded, it shall be taken in such manner as the by-laws prescribe, and, if the by-laws make no provision therefor, then as the chair directs.</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Changes re meeting after notice given</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(4) If a notice of meeting of members or shareholders has been given in respect of a meeting to be held on a day that falls within the period of the declared emergency and, after the notice is given, the date, time or place of the meeting is changed in order to hold the meeting by telephonic or electronic means, another notice of meeting is not required to be given but members, shareholders and any other person entitled to receive the notice must be informed of the change in a manner and within a time that is reasonable in the circumstances.</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Suspension of In-Person Voting</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">3 The operation of <a href="https://www.canlii.org/en/on/laws/stat/rso-1990-c-c35/latest/rso-1990-c-c35.html#sec76subsec4_smooth" style="box-sizing: border-box; color: black; cursor: pointer; text-decoration-line: none;" target="_blank">subsection 76 (4)</a> of the Act is temporarily suspended.</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Voting by Electronic Means</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">4 The operation of <a href="https://www.canlii.org/en/on/laws/stat/rso-1990-c-c35/latest/rso-1990-c-c35.html#sec76subsec5_smooth" style="box-sizing: border-box; color: black; cursor: pointer; text-decoration-line: none;" target="_blank">subsection 76 (5)</a> of the Act is temporarily suspended and the following replacement provision is in effect during the temporary suspension period only:</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Voting by other means</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(5) Whether or not the articles or by-laws of a co-operative, including a non-profit housing co-operative, so provide, voting may take place by mail or by telephonic or electronic means.</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Time Extension for Annual Meetings</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">5 The operation of <a href="https://www.canlii.org/en/on/laws/stat/rso-1990-c-c35/latest/rso-1990-c-c35.html#sec77_smooth" style="box-sizing: border-box; color: black; cursor: pointer; text-decoration-line: none;" target="_blank">section 77</a> of the Act is temporarily suspended and the following replacement provisions are in effect during the temporary suspension period only:</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Annual meetings</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;"><strong style="box-sizing: border-box;">77 </strong>(1) A co-operative shall hold an annual meeting of its members not later than eighteen months after its incorporation and subsequently not more than fifteen months after the holding of the last preceding annual meeting and at such meeting any member shall have an opportunity to raise any matter relevant to the affairs and business of the co-operative.</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Annual meetings, time extension</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(2) Despite subsection (1), if the last day on which a meeting is required to be held under subsection (1) is a day that falls within the period of the declared emergency, the last day on which the meeting is instead required to be held is no later than the 90th day after the day the emergency is terminated.</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Same</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(3) Despite subsection (1), if the last day on which a meeting is required to be held under subsection (1) is a day that falls within the 30-day period that begins on the day after the day the emergency is terminated, the last day on which the meeting is instead required to be held is no later than the 120th day after the day the emergency is terminated.</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Election of Directors by Electronic Means</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">6 The operation of <a href="https://www.canlii.org/en/on/laws/stat/rso-1990-c-c35/latest/rso-1990-c-c35.html#sec90subsec1_smooth" style="box-sizing: border-box; color: black; cursor: pointer; text-decoration-line: none;" target="_blank">subsection 90 (1)</a> of the Act is temporarily suspended and the following replacement provisions are in effect during the temporary suspension period only:</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Election of directors</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(1) The directors shall be elected by the members in general meeting, and the election shall be by ballot in the manner prescribed by <a href="https://www.canlii.org/en/on/laws/stat/rso-1990-c-c35/latest/rso-1990-c-c35.html#sec91_smooth" style="box-sizing: border-box; color: black; cursor: pointer; text-decoration-line: none;" target="_blank">section 91</a>.</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Method of voting or election</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(1.1) Where a general meeting of members referred to in subsection (1) is held by telephonic or electronic means in accordance with <a href="https://www.canlii.org/en/on/laws/stat/rso-1990-c-c35/latest/rso-1990-c-c35.html#sec74subsec3_smooth" style="box-sizing: border-box; color: black; cursor: pointer; text-decoration-line: none;" target="_blank">subsection 74 (3)</a>, the chair shall conduct a vote or election by ballot in the manner prescribed by <a href="https://www.canlii.org/en/on/laws/stat/rso-1990-c-c35/latest/rso-1990-c-c35.html#sec91_smooth" style="box-sizing: border-box; color: black; cursor: pointer; text-decoration-line: none;" target="_blank">section 91</a>, otherwise the chair may direct the vote or election by alternate means.</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Meeting by Telephone, Board and Executive meetings</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">7 The operation of <a href="https://www.canlii.org/en/on/laws/stat/rso-1990-c-c35/latest/rso-1990-c-c35.html#sec94subsec3_smooth" style="box-sizing: border-box; color: black; cursor: pointer; text-decoration-line: none;" target="_blank">subsection 94 (3)</a> of the Act is temporarily suspended and the following replacement provision is in effect during the temporary suspension period only:</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Meetings by telephone</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(3) Whether or not the by-laws or articles of a co-operative provide otherwise, any director may participate in a meeting of the board of directors or of the executive committee by means of conference, telephone or other communications equipment by means of which all persons participating in the meeting can hear each other, and a director participating in a meeting pursuant to this subsection shall be deemed for the purposes of this Act to be present in person at that meeting.</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Information to be Laid Before Annual Meeting</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">8 The operation of <a href="https://www.canlii.org/en/on/laws/stat/rso-1990-c-c35/latest/rso-1990-c-c35.html#sec128subsec1_smooth" style="box-sizing: border-box; color: black; cursor: pointer; text-decoration-line: none;" target="_blank">subsection 128 (1)</a> of the Act is temporarily suspended and the following replacement provision is in effect during the temporary suspension period only:</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Information to be laid before annual meeting</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(1) For an annual meeting of the members held on a day that is in the period that begins March 17, 2020 and ends on the 120th day after the day the declared emergency is terminated, the directors shall lay before the meeting,</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(a) a comparative financial statement relating separately to,</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(i) the period that commenced on the date of incorporation and ended before the annual meeting or, if the co-operative has completed a financial year, that commenced immediately after the end of the last completed financial year and ended before such annual meeting, as the case may be, and</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(ii) the period covered by the financial year next preceding such latest completed financial year, if any,</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">made up of,</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(iii) a statement of profit and loss for each period,</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(iv) a statement of surplus for each period,</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(v) a statement of patronage returns allocated to members during the year,</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(vi) a statement of source and application of funds for each period, and</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(vii) a balance sheet as at the end of each period;</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(b) the report of the auditor to the members; and</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(c) such further information respecting the financial position of the co-operative as the articles or by-laws of the co-operative require.</span></p></blockquote></div><div class="abstract" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><p style="box-sizing: border-box; font-size: 17px; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">The temporary changes were extended to May 31, 2021, per <a class="authLink" href="https://www.canlii.org/en/on/laws/regu/o-reg-543-20/latest/o-reg-543-20.html" style="box-sizing: border-box; color: #337ab7; cursor: pointer; text-decoration-line: none;"><em style="box-sizing: border-box;">O Reg 543/20</em>, Extension of Temporary Suspension Period</a>:</span></p></div><div class="passage" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><blockquote style="border: none; box-sizing: border-box; font-size: 17px; line-height: 1.5em; margin: 0px 30px; padding: 0px 20px;"><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Extension of temporary suspension period for certain provisions</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;"><strong style="box-sizing: border-box;">1. </strong>For the purposes of sections 1, 3, 4, 6 and 7 of the Schedule to the Act, the temporary suspension period is extended to end on May 31, 2021.</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;"><strong style="box-sizing: border-box;">2.</strong> Omitted (provides for coming into force of provisions of this Regulation).</span></p></blockquote></div><div class="abstract" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><p style="box-sizing: border-box; font-size: 17px; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Ontario does not have any privacy legislation that is applicable to the private sector. However, the federal <a class="authLink" href="https://www.canlii.org/en/ca/laws/stat/sc-2000-c-5/latest/sc-2000-c-5.html" style="box-sizing: border-box; color: #337ab7; cursor: pointer; text-decoration-line: none;"><em style="box-sizing: border-box;">Personal Information Protection and Electronic Documents Act</em>, SC 2000, c 5</a> ("<em style="box-sizing: border-box;">PIPEDA</em>") applies to private sector organizations that are not federally regulated, as well as federally-regulated organizations, in respect of personal information that the organization collects, uses or discloses in the course of commercial activities per <a class="authLink" href="https://www.priv.gc.ca/en/privacy-topics/privacy-laws-in-canada/02_05_d_15/" style="box-sizing: border-box; color: #337ab7; cursor: pointer; text-decoration-line: none;" target="_blank"><em style="box-sizing: border-box;">Summary of privacy laws in Canada</em>, Office of the Privacy Commissioner of Canada, January 2018</a>):</span></p></div><div class="passage" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><blockquote style="border: none; box-sizing: border-box; font-size: 17px; line-height: 1.5em; margin: 0px 30px; padding: 0px 20px;"><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Application</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;"><strong style="box-sizing: border-box;">4</strong> (1) This Part applies to every organization in respect of personal information that</span></p><blockquote style="border: none; box-sizing: border-box; line-height: 1.5em; margin: 0px 30px; padding: 0px 20px;"><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(a) the organization collects, uses or discloses in the course of commercial activities; or</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(b) is about an employee of, or an applicant for employment with, the organization and that the organization collects, uses or discloses in connection with the operation of a federal work, undertaking or business.</span></p></blockquote></blockquote></div><div class="abstract" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><p style="box-sizing: border-box; font-size: 17px; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">"Personal information" is defined as information about an identifiable individual:</span></p></div><div class="passage" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><blockquote style="border: none; box-sizing: border-box; font-size: 17px; line-height: 1.5em; margin: 0px 30px; padding: 0px 20px;"><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Definitions</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;"><strong style="box-sizing: border-box;">2</strong> (1) The definitions in this subsection apply in this Part.</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">[...]</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;"><strong style="box-sizing: border-box;">personal information</strong> means information about an identifiable individual. (<em style="box-sizing: border-box;">renseignement personnel</em>)</span></p></blockquote></div><div class="abstract" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><p style="box-sizing: border-box; font-size: 17px; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Principle 3 of Schedule 1 of <em style="box-sizing: border-box;">PIPEDA</em> provides that the knowledge and consent of an individual are required for the collection, use, or disclosure of personal information, except where inappropriate. The circumstances that may make it inappropriate to obtain consent are varied. Several examples are provided. One of the examples is when an organization acquires a mailing list from another organization. In that case, the organization providing the list would be expected to obtain consent before disclosing the personal information:</span></p></div><div class="passage" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><blockquote style="border: none; box-sizing: border-box; font-size: 17px; line-height: 1.5em; margin: 0px 30px; padding: 0px 20px;"><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><strong style="box-sizing: border-box;"><span style="font-family: arial;">4.3 Principle 3 - Consent</span></strong></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">The knowledge and consent of the individual are required for the collection, use, or disclosure of personal information, except where inappropriate.</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Note: In certain circumstances personal information can be collected, used, or disclosed without the knowledge and consent of the individual. For example, legal, medical, or security reasons may make it impossible or impractical to seek consent. When information is being collected for the detection and prevention of fraud or for law enforcement, seeking the consent of the individual might defeat the purpose of collecting the information. Seeking consent may be impossible or inappropriate when the individual is a minor, seriously ill, or mentally incapacitated. In addition, organizations that do not have a direct relationship with the individual may not always be able to seek consent. For example, seeking consent may be impractical for a charity or a direct-marketing firm that wishes to acquire a mailing list from another organization. In such cases, the organization providing the list would be expected to obtain consent before disclosing personal information.</span></p></blockquote></div><div class="abstract" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><p style="box-sizing: border-box; font-size: 17px; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Despite the open-endedness of the note in Principle 3, s. 7 of <em style="box-sizing: border-box;">PIPEDA</em> specifically defines the circumstances in which organizations are exempted from the consent requirement for the collection, use, or disclosure of personal information. There is no explicit exception for acquiring a mailing list from another organization:</span></p></div><div class="passage" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><blockquote style="border: none; box-sizing: border-box; font-size: 17px; line-height: 1.5em; margin: 0px 30px; padding: 0px 20px;"><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Collection without knowledge or consent</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;"><strong style="box-sizing: border-box;">7</strong> (1) For the purpose of clause 4.3 of Schedule 1, and despite the note that accompanies that clause, an organization may collect personal information without the knowledge or consent of the individual only if</span></p><blockquote style="border: none; box-sizing: border-box; line-height: 1.5em; margin: 0px 30px; padding: 0px 20px;"><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(a) the collection is clearly in the interests of the individual and consent cannot be obtained in a timely way;</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(b) it is reasonable to expect that the collection with the knowledge or consent of the individual would compromise the availability or the accuracy of the information and the collection is reasonable for purposes related to investigating a breach of an agreement or a contravention of the laws of Canada or a province;</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(b.1) it is contained in a witness statement and the collection is necessary to assess, process or settle an insurance claim;</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(b.2) it was produced by the individual in the course of their employment, business or profession and the collection is consistent with the purposes for which the information was produced;</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(c) the collection is solely for journalistic, artistic or literary purposes;</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(d) the information is publicly available and is specified by the regulations; or</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(e) the collection is made for the purpose of making a disclosure</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(i) under subparagraph (3)(c.1)(i) or (d)(ii), or</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(ii) that is required by law.</span></p></blockquote><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Use without knowledge or consent</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(2) For the purpose of clause 4.3 of Schedule 1, and despite the note that accompanies that clause, an organization may, without the knowledge or consent of the individual, use personal information only if</span></p><blockquote style="border: none; box-sizing: border-box; line-height: 1.5em; margin: 0px 30px; padding: 0px 20px;"><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(a) in the course of its activities, the organization becomes aware of information that it has reasonable grounds to believe could be useful in the investigation of a contravention of the laws of Canada, a province or a foreign jurisdiction that has been, is being or is about to be committed, and the information is used for the purpose of investigating that contravention;</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(b) it is used for the purpose of acting in respect of an emergency that threatens the life, health or security of an individual;</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(b.1) the information is contained in a witness statement and the use is necessary to assess, process or settle an insurance claim;</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(b.2) the information was produced by the individual in the course of their employment, business or profession and the use is consistent with the purposes for which the information was produced;</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(c) it is used for statistical, or scholarly study or research, purposes that cannot be achieved without using the information, the information is used in a manner that will ensure its confidentiality, it is impracticable to obtain consent and the organization informs the Commissioner of the use before the information is used;</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(c.1) it is publicly available and is specified by the regulations; or</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(d) it was collected under paragraph (1)(a), (b) or (e).</span></p></blockquote><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Disclosure without knowledge or consent</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(3) For the purpose of clause 4.3 of Schedule 1, and despite the note that accompanies that clause, an organization may disclose personal information without the knowledge or consent of the individual only if the disclosure is</span></p><blockquote style="border: none; box-sizing: border-box; line-height: 1.5em; margin: 0px 30px; padding: 0px 20px;"><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(a) made to, in the Province of Quebec, an advocate or notary or, in any other province, a barrister or solicitor who is representing the organization;</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(b) for the purpose of collecting a debt owed by the individual to the organization;</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(c) required to comply with a subpoena or warrant issued or an order made by a court, person or body with jurisdiction to compel the production of information, or to comply with rules of court relating to the production of records;</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(c.1) made to a government institution or part of a government institution that has made a request for the information, identified its lawful authority to obtain the information and indicated that</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(i) it suspects that the information relates to national security, the defence of Canada or the conduct of international affairs,</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(ii) the disclosure is requested for the purpose of enforcing any law of Canada, a province or a foreign jurisdiction, carrying out an investigation relating to the enforcement of any such law or gathering intelligence for the purpose of enforcing any such law,</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(iii) the disclosure is requested for the purpose of administering any law of Canada or a province, or</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(iv) the disclosure is requested for the purpose of communicating with the next of kin or authorized representative of an injured, ill or deceased individual;</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(c.2) made to the government institution mentioned in <a href="https://www.canlii.org/en/ca/laws/stat/sc-2000-c-17/latest/sc-2000-c-17.html#sec7_smooth" style="box-sizing: border-box; color: black; cursor: pointer; text-decoration-line: none;" target="_blank">section 7</a> of the <a href="https://www.canlii.org/en/ca/laws/stat/sc-2000-c-17/latest/sc-2000-c-17.html" style="box-sizing: border-box; color: black; cursor: pointer; text-decoration-line: none;" target="_blank">Proceeds of Crime (Money Laundering) and Terrorist Financing Act</a> as required by that section;</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(d) made on the initiative of the organization to a government institution or a part of a government institution and the organization</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(i) has reasonable grounds to believe that the information relates to a contravention of the laws of Canada, a province or a foreign jurisdiction that has been, is being or is about to be committed, or</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(ii) suspects that the information relates to national security, the defence of Canada or the conduct of international affairs;</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(d.1) made to another organization and is reasonable for the purposes of investigating a breach of an agreement or a contravention of the laws of Canada or a province that has been, is being or is about to be committed and it is reasonable to expect that disclosure with the knowledge or consent of the individual would compromise the investigation;</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(d.2) made to another organization and is reasonable for the purposes of detecting or suppressing fraud or of preventing fraud that is likely to be committed and it is reasonable to expect that the disclosure with the knowledge or consent of the individual would compromise the ability to prevent, detect or suppress the fraud;</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(d.3) made on the initiative of the organization to a government institution, a part of a government institution or the individual’s next of kin or authorized representative and</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(i) the organization has reasonable grounds to believe that the individual has been, is or may be the victim of financial abuse,</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(ii) the disclosure is made solely for purposes related to preventing or investigating the abuse, and</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(iii) it is reasonable to expect that disclosure with the knowledge or consent of the individual would compromise the ability to prevent or investigate the abuse;</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(d.4) necessary to identify the individual who is injured, ill or deceased, made to a government institution, a part of a government institution or the individual’s next of kin or authorized representative and, if the individual is alive, the organization informs that individual in writing without delay of the disclosure;</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(e) made to a person who needs the information because of an emergency that threatens the life, health or security of an individual and, if the individual whom the information is about is alive, the organization informs that individual in writing without delay of the disclosure;</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(e.1) of information that is contained in a witness statement and the disclosure is necessary to assess, process or settle an insurance claim;</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(e.2) of information that was produced by the individual in the course of their employment, business or profession and the disclosure is consistent with the purposes for which the information was produced;</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(f) for statistical, or scholarly study or research, purposes that cannot be achieved without disclosing the information, it is impracticable to obtain consent and the organization informs the Commissioner of the disclosure before the information is disclosed;</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(g) made to an institution whose functions include the conservation of records of historic or archival importance, and the disclosure is made for the purpose of such conservation;</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(h) made after the earlier of</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(i) one hundred years after the record containing the information was created, and</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(ii) twenty years after the death of the individual whom the information is about;</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(h.1) of information that is publicly available and is specified by the regulations; or</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(h.2) [Repealed, <a href="https://www.canlii.org/en/ca/laws/astat/sc-2015-c-32/latest/sc-2015-c-32.html" style="box-sizing: border-box; color: black; cursor: pointer; text-decoration-line: none;" target="_blank">2015, c. 32, s. 6</a>]</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(i) required by law.</span></p></blockquote></blockquote></div><div class="abstract" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><p style="box-sizing: border-box; font-size: 17px; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Ontario has not codified a statutory tort of invasion of privacy as has been done in some other provinces (<a class="authLink" href="https://www.canlii.org/en/on/onca/doc/2012/2012onca32/2012onca32.html" style="box-sizing: border-box; color: #337ab7; cursor: pointer; text-decoration-line: none;"><em style="box-sizing: border-box;">Jones v. Tsige</em>, 2012 ONCA 32 (CanLII)</a>, paras. 51-53). Nor is there a broad common law tort of "invasion of privacy" in Canada. Instead, the concept is divided into four separate torts, most of which have only been recently recognized by the Ontario courts. In <a class="authLink" href="https://www.canlii.org/en/on/onca/doc/2012/2012onca32/2012onca32.html" style="box-sizing: border-box; color: #337ab7; cursor: pointer; text-decoration-line: none;"><em style="box-sizing: border-box;">Jones v. Tsige</em></a>, the first decision to recognize the tort of intrusion upon seclusion, the Court of Appeal explained the four privacy torts as follows:</span></p></div><div class="passage" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><blockquote style="border: none; box-sizing: border-box; font-size: 17px; line-height: 1.5em; margin: 0px 30px; padding: 0px 20px;"><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">[16] Canadian, English and American courts and commentators almost invariably take the seminal articles of S.D. Warren & L.D. Brandeis, "The Right to Privacy" (1890) 4 Harv. L. R. 193 and William L. Prosser, "Privacy" (1960), 48 Cal. L. R. 383 as their starting point.</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">[...]</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">[18] Professor Prosser's article picked up the threads of the American jurisprudence that had developed in the seventy years following the influential Warren and Brandeis article. Prosser argued that what had emerged from the hundreds of cases he canvassed was not one tort, but four, tied together by a common theme and name, but comprising different elements and protecting different interests. Prosser delineated a four-tort catalogue, summarized as follows, at p. 389:</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">1. Intrusion upon the plaintiff's seclusion or solitude, or into his private affairs.</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">2. Public disclosure of embarrassing private facts about the plaintiff.</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">3. Publicity which places the plaintiff in a false light in the public eye.</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">4. Appropriation, for the defendant's advantage, of the plaintiff's name or likeness.</span></p></blockquote></div><div class="abstract" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><p style="box-sizing: border-box; font-size: 17px; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">In <em style="box-sizing: border-box;"><a class="authLink" href="https://www.canlii.org/en/on/onca/doc/2012/2012onca32/2012onca32.html" style="box-sizing: border-box; color: #337ab7; cursor: pointer; text-decoration-line: none;">Jones v. Tsige</a>, </em>the Court of Appeal recognized the tort of intrusion upon seclusion, describing the tort as:</span></p></div><div class="passage" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><blockquote style="border: none; box-sizing: border-box; font-size: 17px; line-height: 1.5em; margin: 0px 30px; padding: 0px 20px;"><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">[19] ... The tort that is most relevant to this case, the tort of "intrusion upon seclusion", is described by the Restatement, at § 652B as:</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">One who intentionally intrudes, physically or otherwise, upon the seclusion of another or his private affairs or concerns, is subject to liability to the other for invasion of his privacy, if the invasion would be highly offensive to a reasonable person.</span></p></blockquote></div><div class="abstract" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><p style="box-sizing: border-box; font-size: 17px; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">The tort is applicable to intrusions, both physical and non-physical, into the plaintiff's private affairs, and does not require publication or dissemination of information learned through the intrusion:</span></p></div><div class="passage" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><blockquote style="border: none; box-sizing: border-box; font-size: 17px; line-height: 1.5em; margin: 0px 30px; padding: 0px 20px;"><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">[20] The comment section of the Restatement elaborates this proposition and explains that the tort includes physical intrusions into private places as well as listening or looking, with or without mechanical aids, into the plaintiff's private affairs. Of particular relevance to this appeal, is the observation that other non-physical forms of investigation or examination into private concerns may be actionable. These include opening private and personal mail or examining a private bank account, "even though there is no publication or other use of any kind" of the information obtained.</span></p></blockquote></div><div class="abstract" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><p style="box-sizing: border-box; font-size: 17px; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">The Court set out the three constituent elements and noted that proof of harm is not an element of the cause of action:</span></p></div><div class="passage" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><blockquote style="border: none; box-sizing: border-box; font-size: 17px; line-height: 1.5em; margin: 0px 30px; padding: 0px 20px;"><blockquote style="border: none; box-sizing: border-box; line-height: 1.5em; margin: 0px 30px; padding: 0px 20px;"><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">[71] The key features of this cause of action are, first, that the defendant's conduct must be intentional, within which I would include reckless; second, that the defendant must have invaded, without lawful justification, the plaintiff's private affairs or concerns; and third, that a reasonable person would regard the invasion as highly offensive causing distress, humiliation or anguish. However, proof of harm to a recognized economic interest is not an element of the cause of action. I return below to the question of damages, but state here that I believe it important to emphasize that given the intangible nature of the interest protected, damages for intrusion upon seclusion will ordinarily be measured by a modest conventional sum.</span></p></blockquote></blockquote></div><div class="abstract" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><p style="box-sizing: border-box; font-size: 17px; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">A claim will arise only from deliberate and significant invasions of privacy. It is only for intrusions into matters such as financial or health records and other sensitive information that would be described as offensive when viewed in the standard of a reasonable person:</span></p></div><div class="passage" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><blockquote style="border: none; box-sizing: border-box; font-size: 17px; line-height: 1.5em; margin: 0px 30px; padding: 0px 20px;"><blockquote style="border: none; box-sizing: border-box; line-height: 1.5em; margin: 0px 30px; padding: 0px 20px;"><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">[72] These elements make it clear that recognizing this cause of action will not open the floodgates. A claim for intrusion upon seclusion will arise only for deliberate and significant invasions of personal privacy. Claims from individuals who are sensitive or unusually concerned about their privacy are excluded: it is only intrusions into matters such as one's financial or health records, sexual practises and orientation, employment, diary or private correspondence that, viewed objectively on the reasonable person standard, can be described as highly offensive.</span></p></blockquote></blockquote></div><div class="abstract" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><p style="box-sizing: border-box; font-size: 17px; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Damages for intrusion upon seclusion in cases where the plaintiff has suffered no pecuniary loss should be modest but sufficient to mark the wrong that has been done. The Court of Appeal fixed the range at up to $20,000.</span></p></div><div class="abstract" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><p style="box-sizing: border-box; font-size: 17px; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Public disclosure of embarrassing private facts was recognized by Justice Stinson of the Ontario Superior Court of Justice in <a class="authLink" href="https://www.canlii.org/en/on/onsc/doc/2016/2016onsc541/2016onsc541.html" style="box-sizing: border-box; color: #337ab7; cursor: pointer; text-decoration-line: none;"><em style="box-sizing: border-box;">Doe 464533 v N.D.</em>, 2016 ONSC 541 (CanLII)</a>, and publicity which places the plaintiff in a false light was recognized by Justice Kristjanson of the Ontario Superior Court of Justice in <a class="authLink" href="https://www.canlii.org/en/on/onsc/doc/2019/2019onsc7279/2019onsc7279.html" style="box-sizing: border-box; color: #337ab7; cursor: pointer; text-decoration-line: none;"><em style="box-sizing: border-box;">Yenovkian v. Gulian</em>, 2019 ONSC 7279 (CanLII)</a>. </span></p></div><div class="abstract" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><p style="box-sizing: border-box; font-size: 17px; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">In <em style="box-sizing: border-box;"><a class="authLink" href="https://www.canlii.org/en/on/onsc/doc/2016/2016onsc541/2016onsc541.html" style="box-sizing: border-box; color: #337ab7; cursor: pointer; text-decoration-line: none;" target="_blank">Doe 464533 v N.D.</a>, </em>the plaintiff had sent the defendant, an ex-boyfriend, an intimate video of herself on the promise that the video would not be shared with anyone else. However, the defendant immediately broke his promise and posted the video on a pornography website. He also showed the video to his friends. The defendant never served a statement of defence and was noted in default. As a result, the plaintiff's allegations were uncontested. Though the video was eventually removed from the website, it was online for approximately 3 weeks. Stinson J. recognized that the dissemination of intimate images was a social ill created by technology that the law had to adapt to in order to provide recourse for victims:</span></p></div><div class="passage" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><blockquote style="border: none; box-sizing: border-box; font-size: 17px; line-height: 1.5em; margin: 0px 30px; padding: 0px 20px;"><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">[16] In recent years, technology has enabled predators and bullies to victimize others by releasing their nude photos or intimate videos without consent. We now understand the devastating harm that can result from these acts, ranging from suicides by teenage victims to career-ending consequences when established persons are victimized. Society has been scrambling to catch up to this problem and the law is beginning to respond to protect victims.</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">[17] Each year, criminal courts in Canada deal with an increasing number of these cases. Unlike past decades, many child pornography cases now involve same-aged peers who share nude photos or sex videos with each other. Adults also suffer great harm from these acts. In 2014, Parliament responded by amending the <em style="box-sizing: border-box;">Criminal Code</em> to include a new offence of "publication of an intimate image without consent": <em style="box-sizing: border-box;">Criminal Code</em>, R.S.C., 1985, c. C-46, as amended, s. 161.1. Under this new provision, anyone who publishes an intimate image of a person without that person's consent is guilty of an offence and can be sentenced to up to five years in prison.</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">[18] In November 2015, the Province of Manitoba enacted legislation to create the tort of "non-consensual distribution of intimate images": see <em style="box-sizing: border-box;">The Intimate Image Protection Act</em>, C.C.S.M. c. 187, s. 11, which came into force on January 15, 2016. No other legislature has so far passed similar legislation. This case, therefore, raises legal questions about the availability of a common law remedy for victims of this conduct, and the legal basis upon which such claims might be founded. Counsel for the plaintiff informed the court that she had been unable to locate any reported decision in Canada concerning a victim seeking civil damages on these or similar facts and my research has not revealed one. This case is possibly the first.</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">[19] For the reasons that follow, I have concluded that there are both established and developing legal grounds that support the proposition that the courts can and should provide civil recourse for individuals who suffer harm arising from this misconduct and should intervene to prevent its repetition.</span></p></blockquote></div><div class="abstract" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><p style="box-sizing: border-box; font-size: 17px; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Stinson J. found that the facts of the case more closely resembled public disclosure of embarrassing private facts than intrusion upon seclusion. Public disclosure of private facts deals with the situation in which one gives publicity to a matter concerning the private life of another:</span></p></div><div class="passage" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><blockquote style="border: none; box-sizing: border-box; font-size: 17px; line-height: 1.5em; margin: 0px 30px; padding: 0px 20px;"><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">[41] While the facts of this case bear some of the hallmarks of the tort of "intrusion upon seclusion", they more closely fall within Prosser's second category: "Public disclosure of embarrassing private facts about the plaintiff." That category is described by the [<em style="box-sizing: border-box;">Restatement (Second) of Torts (2010)</em> at 652D as follows: "One who gives publicity to a matter concerning the private life of another is subject to liability to the other for invasion of his privacy, if the matter publicized is of a kind that (a) would be highly offensive to a reasonable person, and (b) is not of legitimate concern to the public."</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">[42] The comment section of the Restatement elaborates on this proposition as follows:</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Every individual has some phases of his life and his activities and some facts about himself that he does not expose to the public eye, but keeps entirely to himself or at most reveals only to his family or to close friends. Sexual relations, for example, are normally entirely private matters, as are family quarrels, many unpleasant or disgraceful or humiliating illnesses, most intimate personal letters, most details of a man's life in his home, and some of his past history that he would rather forget. When these intimate details of his life are spread before the public gaze in a manner highly offensive to the ordinary reasonable man, there is an actionable invasion of his privacy, unless the matter is one of legitimate public interest.</span></p></blockquote></div><div class="abstract" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><p style="box-sizing: border-box; font-size: 17px; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Although written in somewhat antiquated language, the concepts described were entirely apposite to this case. Among the illustrations offered by the Restatement is the following: "A publishes, without B's consent, a picture of B nursing her child. This is an invasion of B's privacy."</span></p></div><div class="passage" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><blockquote style="border: none; box-sizing: border-box; font-size: 17px; line-height: 1.5em; margin: 0px 30px; padding: 0px 20px;"><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">[43] Prosser listed the features of this tort as follows:</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">• the disclosure of the private facts must be a public disclosure, and not a private one;</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">• the facts disclosed to the public must be private facts, and not public ones; and</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">• the matter made public must be one which would be offensive and objectionable to a reasonable man of ordinary sensibilities.</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Stinson J. set out the test for the tort as follows:</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">[46] I would essentially adopt as the elements of the cause of action for public disclosure of private facts the Restatement (Second) of Torts (2010) formulation, with one minor modification: One who gives publicity to a matter concerning the private life of another is subject to liability to the other for invasion of the other's privacy, if the matter publicized or the act of the publication (a) would be highly offensive to a reasonable person, and (b) is not of legitimate concern to the public. [modification shown by underlining]</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">[47] In the present case the defendant posted on the Internet a privately-shared and highly personal intimate video recording of the plaintiff. I find that in doing so he made public an aspect of the plaintiff's private life. I further find that a reasonable person would find such activity, involving unauthorized public disclosure of such a video, to be highly offensive. It is readily apparent that there was no legitimate public concern in him doing so.</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">[48] I therefore conclude that this cause of action is made out.</span></p></blockquote></div><div class="abstract" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><p style="box-sizing: border-box; font-size: 17px; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">However, the default judgment of Stinson J. was set aside by Justice Dow in <a class="authLink" href="https://www.canlii.org/en/on/onsc/doc/2016/2016onsc541/2016onsc541.html" style="box-sizing: border-box; color: #337ab7; cursor: pointer; text-decoration-line: none;"><em style="box-sizing: border-box;">Doe 464533 v N.D.</em>, 2016 ONSC 541 (CanLII)</a> (CanLII) for procedural reasons.</span></p></div><div class="abstract" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><p style="box-sizing: border-box; font-size: 17px; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">The cause of action of public disclosure of embarrassing private facts was recognized anew by Justice Gomery in <a class="authLink" href="https://www.canlii.org/en/on/onsc/doc/2018/2018onsc6607/2018onsc6607.html" style="box-sizing: border-box; color: #337ab7; cursor: pointer; text-decoration-line: none;"><em style="box-sizing: border-box;">Jane Doe 72511 v. N.M.</em>, 2018 ONSC 6607 (CanLII)</a>, which also involved a case of so-called "revenge porn". Gomery J. noted that the fact that the default judgment in Doe had been set aside did not invalidate Stinson J.'s analysis of invasion of privacy:</span></p></div><div class="passage" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><blockquote style="border: none; box-sizing: border-box; font-size: 17px; line-height: 1.5em; margin: 0px 30px; padding: 0px 20px;"><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">[74] In <em style="box-sizing: border-box;">Jane Doe 464533</em>, Stinson J. granted default judgment for damages based on the posting of an intimate video on a pornography website without the plaintiff's knowledge or consent. He held the defendant N.D. liable on three alternative causes of action: breach of confidence, intentional infliction of mental distress, and invasion of privacy. After Stinson J. released his decision, N.D. moved successfully to set it aside, on the basis that the defendant had an arguable defence on the merits and that it would be in the interests of justice to allow the case to proceed to a full hearing. This does not make Stinson J.'s analysis of invasion of privacy less important or persuasive.</span></p></blockquote></div><div class="abstract" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><p style="box-sizing: border-box; font-size: 17px; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Gomery J. agreed with Stinson J. that the tort of public disclosure of embarrassing private facts should be recognized:</span></p></div><div class="passage" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><blockquote style="border: none; box-sizing: border-box; font-size: 17px; line-height: 1.5em; margin: 0px 30px; padding: 0px 20px;"><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">[86] I conclude that the best way of fashioning a civil remedy is to adopt the tort of public disclosure of private facts in Ontario. In doing so I rely on the same reasoning that led the Court of Appeal to recognize the related tort of intrusion on seclusion in Jones v. Tsige.</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">[87] The adoption of this tort is consistent with Charter values. In <em style="box-sizing: border-box;">R. v. Dyment</em> [1988 CarswellPEI 7(S.C.C.)], a case cited in <em style="box-sizing: border-box;">Jones v. Tsige</em>, La Forest J. stated that "privacy is essential for the well-being of the individual. For this reason alone, it is worthy of constitutional protection, but it also has profound significance for the public order". As observed by Justice L'Heureux-Dubé, privacy is "an essential component of what it means to be 'free'".</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">[...]</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">[95] Finally, failing to provide a remedy in this case would deprive Jane of any meaningful recourse in the face of a deliberate and flagrant breach of her privacy rights. In Jones v. Tsige, the Court of Appeal characterized Tsige's actions in accessing Jones' personal banking records as "deliberate, prolonged and shocking", and said that the case cried out for a remedy. But, in that case, Tsige took no steps to record, publish or distribute the plaintiff's information, and Jones suffered no long-term damages as a result of the breach of her privacy rights. In the case at bar, the explicit video that Nicholas posted without Jane's knowledge of consent remained online for over two years, and was viewed over 60,000 times. The damage suffered by Jane is profound and still ongoing. How can the court deny her a remedy in these circumstances?</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">[96] I conclude that Jane has a cause of action against Nicholas for the public disclosure of private facts without her consent. In <em style="box-sizing: border-box;">Jones v. Tsige</em>, the Court of Appeal recognized the need for civil remedies to protect the privacy of personal information. I see no reason why this protection should not extend to prevent the unauthorized publication of intimate images, given the privacy rights at stake and the serious harm caused by such publication.</span></p></blockquote></div><div class="abstract" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><p style="box-sizing: border-box; font-size: 17px; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Gomery J. adopted Stinson J.'s elements for the tort:</span></p></div><div class="passage" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><blockquote style="border: none; box-sizing: border-box; font-size: 17px; line-height: 1.5em; margin: 0px 30px; padding: 0px 20px;"><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">[97] I agree with the elements of the cause of action proposed by Stinson J. which for convenience sake I will reproduce again here:</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">One who gives publicity to a matter concerning the private life of another is subject to liability to the other for invasion of the other's privacy, if the matter publicized or the act of the publication (a) would be highly offensive to a reasonable person, and (b) is not of legitimate concern to the public.</span></p></blockquote></div><div class="abstract" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><p style="box-sizing: border-box; font-size: 17px; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Gomery J. stated the plaintiff must prove four criteria to establish the tort:</span></p></div><div class="passage" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><blockquote style="border: none; box-sizing: border-box; font-size: 17px; line-height: 1.5em; margin: 0px 30px; padding: 0px 20px;"><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">[98] I accept Stinson J.'s modification to the description of the tort in the Restatement, because it is important to emphasize that a sexually explicit videotape is not in itself necessarily "highly offensive". There is nothing inherently wrong about taking intimate photos of an adult or filming consensual sex between adults, or agreeing to participate in such photos or recordings. What is wrong is the non-consensual publication or sharing of a photo or recording of someone who did not want to share it with anyone else.</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">[99] To establish liability, the plaintiff must therefore prove that:</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(a) the defendant publicized an aspect of the plaintiff's private life;</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(b) the plaintiff did not consent to the publication;</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(c) The matter publicized or its publication would be highly offensive to a reasonable person; and</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(d) The publication was not of legitimate concern to the public.</span></p></blockquote></div><div class="abstract" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><p style="box-sizing: border-box; font-size: 17px; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">In <a class="authLink" href="https://www.canlii.org/en/on/onsc/doc/2019/2019onsc7279/2019onsc7279.html" style="box-sizing: border-box; color: #337ab7; cursor: pointer; text-decoration-line: none;"><em style="box-sizing: border-box;">Yenovkian v. Gulian</em>, 2019 ONSC 7279 (CanLII)</a>,<em style="box-sizing: border-box;"> </em>Kristjanson J. recognized the last remaining privacy tort from the four-tort catalogue, publicly placing a person in a false light. The defendant engaged in years of cyberbullying against the mother of his children by using online petitions, emails, YouTube videos to demean her and portray her, falsely, in a negative manner. The Court felt that the case was appropriate for the adoption of the new tort and described the elements as follows:</span></p></div><div class="passage" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><blockquote style="border: none; box-sizing: border-box; font-size: 17px; line-height: 1.5em; margin: 0px 30px; padding: 0px 20px;"><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">[170] With these three torts all recognized in Ontario law, the remaining item in the “four-tort catalogue” of causes of action for invasion of privacy is the third, that is, publicity placing the plaintiff in a false light. I hold that this is the case in which this cause of action should be recognized. It is described in § 652E of the Restatement as follows:</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Publicity Placing Person in False Light</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">One who gives publicity to a matter concerning another that places the other before the public in a false light is subject to liability to the other for invasion of his privacy, if</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(a) the false light in which the other was placed would be highly offensive to a reasonable person, and</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">(b) the actor had knowledge of or acted in reckless disregard as to the falsity of the publicized matter and the false light in which the other would be placed.</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">[171] I adopt this statement of the elements of the tort. I also note the clarification in the Restatement’s commentary on this passage to the effect that, while the publicity giving rise to this cause of action will often be defamatory, defamation is not required. It is enough for the plaintiff to show that a reasonable person would find it highly offensive to be publicly misrepresented as they have been. The wrong is in publicly representing someone, not as worse than they are, but as other than they are. The value at stake is respect for a person’s privacy right to control the way they present themselves to the world.</span></p></blockquote></div><div class="abstract" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><p style="box-sizing: border-box; font-size: 17px; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">Kristjanson J. distinguished the tort from the tort of public disclosure of private facts, in that "false light" involves false or misleading claims, while the former involves true facts. False light also requires that the defendant know or be reckless to the falsity of the claims:</span></p></div><div class="passage" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><blockquote style="border: none; box-sizing: border-box; font-size: 17px; line-height: 1.5em; margin: 0px 30px; padding: 0px 20px;"><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">[172] It also bears noting this cause of action has much in common with the tort of public disclosure of private facts. They share the common elements of 1) publicity, which is 2) highly offensive to a reasonable person. The principal difference between the two is that public disclosure of private facts involves true statements, while “false light” publicity involves false or misleading claims. (Two further elements also distinguish the two causes of action: “false light” invasion of privacy requires that the defendant know or be reckless to the falsity of the information, while public disclosure of private facts involves a requirement that there be no legitimate public concern justifying the disclosure.)</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">[173] It follows that one who subjects another to highly offensive publicity can be held responsible whether the publicity is true or false. This indeed, is precisely why the tort of publicity placing a person a false light should be recognized. It would be absurd if a defendant could escape liability for invasion of privacy simply because the statements they have made about another person are false.</span></p></blockquote></div><div class="abstract" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><p style="box-sizing: border-box; font-size: 17px; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">The defendant was found liable for the novel tort. He had made serious and false allegations about the plaintiff and her family online, including that she was a kidnapper, child abuser, forger and fraudster</span></p></div><div class="passage" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 14px; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><blockquote style="border: none; box-sizing: border-box; font-size: 17px; line-height: 1.5em; margin: 0px 30px; padding: 0px 20px;"><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">[175] I find that the false light in which Mr. Yenovkian has placed Ms. Gulian would be highly offensive to a reasonable person. I have set out detailed findings of the false light publicity throughout this decision. Mr. Yenovkian has and continues to make serious allegations online about Ms. Gulian and her family, including that she is a kidnapper, abuses the children, drugs the children, forges documents, and defrauds governments. I find these statements to be false on the evidence before me.</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">[176] Mr. Yenovkian has posted a video online of a person displaying posters of Ms. Gulian and her parents and the allegations at various locations in London, England. He established an online petition to persecute Ms. Gulian and her parents and enlisted the help of members of the public. He has spread his allegations on the internet and distributed them and links to the sites to friends, family members and business relations of Ms. Gulian and her parents, members of the Armenian community and her church in London, England, as well as to Ms. Gulian’s fellow employees.</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">[177] Mr. Yenovkian’s conduct has caused a visible and provable illness. Ms. Gulian testified that she has sought medical assistance from her family doctor as a result of Mr. Yenovkian’s conduct. She saw Dr. Rajpal because she was having nightmares, feeling ill and was undergoing mental stress.</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">[...]</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">[180] As a direct result of Mr. Yenovkian’s conduct, Ms. Gulian is concerned that one of the anonymous people on the internet who have expressed support for Mr. Yenovkian on his online petition could find the address of her parents’ business online and track down her family. This prospect is terrifying to Ms. Gulian. She worries about the safety of her children. Ms. Gulian is waking up full of dread in the morning not knowing if someone who has viewed Mr. Yenovkian’s postings and who believes Mr. Yenovkian’s false claims will do something to Ms. Gulian or take her children.</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">[181] The police and child welfare authorities in both Toronto and London have visited her home several times because of Mr. Yenovkian’s unfounded complaints. Mr. Yenovkian is not only interfering with Ms. Gulian’s use of her home, but also her use of her computer and the internet, where Mr. Yenovkian’s allegations are posted.</span></p><p style="box-sizing: border-box; line-height: 1.8em; margin: 15px 0px;"><span style="font-family: arial;">[182] Mr. Yenovkian has actively sought an audience for a website that portrays Ms. Gulian as criminally abusive of A.B. and C.D. In his vindictive pursuit of his own perceived interest, he has been, at the very least, reckless of the false light in which his campaign would place her.</span></p></blockquote></div><p style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 17px; font-variant-ligatures: normal; line-height: 1.8em; margin: 15px 0px; orphans: 2; text-decoration-thickness: initial; widows: 2;"></p><p style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 17px; font-variant-ligatures: normal; line-height: 1.8em; margin: 15px 0px; orphans: 2; text-decoration-thickness: initial; widows: 2;"></p><div class="memo_heading" style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-family: Times; font-size: 17px; font-variant-ligatures: normal; margin-bottom: 10px; margin-top: 30px; orphans: 2; text-decoration: underline; widows: 2;"><span style="font-family: arial;">Authorities:</span></div><span style="font-family: arial; font-variant-ligatures: normal; orphans: 2; text-decoration-thickness: initial; widows: 2;"><a data-delay="{"show":"800", "hide":"100"}" data-original-title="Click the link to view source" data-placement="left" data-toggle="tooltip" href="https://www.canlii.org/en/on/laws/stat/rso-1990-c-c35/latest/rso-1990-c-c35.html" style="box-sizing: border-box; color: black; cursor: pointer; font-size: 14px; text-decoration-line: none;" target="_blank" title=""><i style="box-sizing: border-box;">Co-operative Corporations Act</i>, RSO 1990, c C.35 </a><span style="background-color: white; caret-color: rgb(51, 51, 51); color: #333333; font-size: 14px;"></span><br style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-size: 14px;" /><a data-delay="{"show":"800", "hide":"100"}" data-original-title="Click the link to view source" data-placement="left" data-toggle="tooltip" href="https://www.canlii.org/en/on/laws/regu/o-reg-543-20/latest/o-reg-543-20.html" style="box-sizing: border-box; color: black; cursor: pointer; font-size: 14px; text-decoration-line: none;" target="_blank" title=""><i style="box-sizing: border-box;">O Reg 543/20</i>, Extension of Temporary Suspension Period </a><span style="background-color: white; caret-color: rgb(51, 51, 51); color: #333333; font-size: 14px;"></span><br style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-size: 14px;" /><a data-delay="{"show":"800", "hide":"100"}" data-original-title="Click the link to view source" data-placement="left" data-toggle="tooltip" href="https://www.canlii.org/en/ca/laws/stat/sc-2000-c-5/latest/sc-2000-c-5.html" style="box-sizing: border-box; color: black; cursor: pointer; font-size: 14px; text-decoration-line: none;" target="_blank" title=""><i style="box-sizing: border-box;">Personal Information Protection and Electronic Documents Act</i>, SC 2000, c 5 </a><span style="background-color: white; caret-color: rgb(51, 51, 51); color: #333333; font-size: 14px;"></span><br style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-size: 14px;" /><a data-delay="{"show":"800", "hide":"100"}" data-original-title="Click the link to view source" data-placement="left" data-toggle="tooltip" href="https://www.canlii.org/en/on/laws/stat/rso-1990-c-f31/latest/rso-1990-c-f31.html" style="box-sizing: border-box; color: black; cursor: pointer; font-size: 14px; text-decoration-line: none;" target="_blank" title=""><i style="box-sizing: border-box;">Freedom of Information and Protection of Privacy Act</i>, RSO 1990, c F.31 </a><span style="background-color: white; caret-color: rgb(51, 51, 51); color: #333333; font-size: 14px;"></span><br style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-size: 14px;" /><a data-delay="{"show":"800", "hide":"100"}" data-original-title="Click the link to view source" data-placement="left" data-toggle="tooltip" href="https://www.priv.gc.ca/en/privacy-topics/privacy-laws-in-canada/02_05_d_15/" style="box-sizing: border-box; color: black; cursor: pointer; font-size: 14px; text-decoration-line: none;" target="_blank" title=""><i style="box-sizing: border-box;">Summary of privacy laws in Canada</i>, Office of the Privacy Commissioner of Canada, January 2018 </a><span style="background-color: white; caret-color: rgb(51, 51, 51); color: #333333; font-size: 14px;"></span><br style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-size: 14px;" /><a data-delay="{"show":"800", "hide":"100"}" data-original-title="Click the link to view source" data-placement="left" data-toggle="tooltip" href="https://www.canlii.org/en/on/onca/doc/2012/2012onca32/2012onca32.html" style="box-sizing: border-box; color: black; cursor: pointer; font-size: 14px; text-decoration-line: none;" target="_blank" title=""><i style="box-sizing: border-box;">Jones v. Tsige</i>, 2012 ONCA 32 (CanLII) </a><span style="background-color: white; caret-color: rgb(51, 51, 51); color: #333333; font-size: 14px;"></span><br style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-size: 14px;" /><a data-delay="{"show":"800", "hide":"100"}" data-original-title="Click the link to view source" data-placement="left" data-toggle="tooltip" href="https://www.canlii.org/en/on/onsc/doc/2016/2016onsc541/2016onsc541.html" style="box-sizing: border-box; color: black; cursor: pointer; font-size: 14px; text-decoration-line: none;" target="_blank" title=""><i style="box-sizing: border-box;">Doe 464533 v N.D.</i>, 2016 ONSC 541 (CanLII) </a><span style="background-color: white; caret-color: rgb(51, 51, 51); color: #333333; font-size: 14px;"></span><br style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-size: 14px;" /><a data-delay="{"show":"800", "hide":"100"}" data-original-title="Click the link to view source" data-placement="left" data-toggle="tooltip" href="https://www.canlii.org/en/on/onsc/doc/2016/2016onsc4920/2016onsc4920.html" style="box-sizing: border-box; color: black; cursor: pointer; font-size: 14px; text-decoration-line: none;" target="_blank" title=""><i style="box-sizing: border-box;">Doe v N.D.</i>, 2016 ONSC 4920 (CanLII) </a><span style="background-color: white; caret-color: rgb(51, 51, 51); color: #333333; font-size: 14px;"></span><br style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-size: 14px;" /><a data-delay="{"show":"800", "hide":"100"}" data-original-title="Click the link to view source" data-placement="left" data-toggle="tooltip" href="https://www.canlii.org/en/on/onsc/doc/2018/2018onsc6607/2018onsc6607.html" style="box-sizing: border-box; color: black; cursor: pointer; font-size: 14px; text-decoration-line: none;" target="_blank" title=""><i style="box-sizing: border-box;">Jane Doe 72511 v. N.M.</i>, 2018 ONSC 6607 (CanLII) </a><span style="background-color: white; caret-color: rgb(51, 51, 51); color: #333333; font-size: 14px;"></span><br style="box-sizing: border-box; caret-color: rgb(51, 51, 51); color: #333333; font-size: 14px;" /><a data-delay="{"show":"800", "hide":"100"}" data-original-title="Click the link to view source" data-placement="left" data-toggle="tooltip" href="https://www.canlii.org/en/on/onsc/doc/2019/2019onsc7279/2019onsc7279.html" style="box-sizing: border-box; color: black; cursor: pointer; font-size: 14px; text-decoration-line: none;" target="_blank" title=""><i style="box-sizing: border-box;">Yenovkian v. Gulian</i>, 2019 ONSC 7279 (CanLII) </a></span>Michael K. E. Thielehttp://www.blogger.com/profile/10247495615982921581noreply@blogger.com0tag:blogger.com,1999:blog-6703393754400182307.post-50131025350332592412021-04-15T14:15:00.003-04:002021-04-15T14:18:34.310-04:00Are Ontario Evictions Stopped after April 8, 2021?<p><span style="font-size: medium;"><b> ONTARIO EVICTION MORATORIUM</b></span></p><p><span style="font-size: medium;"><b> NEW DECLARATION OF EMERGENC</b>Y: There are exceptions!</span></p><p><span style="font-size: medium;"><br /></span></p><p><span style="font-size: medium;">The Province of Ontario declared a further Emergency under the Emergency Management and Civil Protection Act <a href="https://canlii.ca/t/55278" target="_blank">(Ont Reg 264/21)</a> on April 7, 2021. For Landlord and Tenant Law purposes the question is whether this declaration has any impact on Evictions and Hearings at the Ontario Landlord and Tenant Board.</span></p><p><span style="font-size: medium;">Landlords and Tenants are wondering if it is possible for an eviction to proceed at this time (during the Emergency) and if not whether there are any exceptions. </span></p><p><span style="font-size: medium;">The fact is that as of April 8, 2021, evictions are stayed (meaning they can not be enforced by the Sheriff). This stay will continue until April 21, 2021, unless it is extended before then. There is, however, an exception. In cases where the Landlord and Tenant Board determines that an eviction should proceed in any event, the Landlord and Tenant Board can order that the sheriff expedite the enforcement of the eviction. If such an Order is made then the eviction can be enforced even though there is a "stay" in effect. An expedited eviction is most likely to be ordered where there is a serious illegal act or impaired safety continuing in the Residential Complex and it is necessary to evict in all of the circumstances. </span></p><p><span style="font-size: medium;">The Order dealing with residential evictions is reproduced below but you can find it at this<a href="https://canlii.ca/t/55277" target="_blank"> LINK</a> as well.</span> </p><p>As for proceedings at the Ontario Landlord and Tenant Board they are continuing. Hearings are being held online (virtually). The Landlord and Tenant Board is switching to a Zoom platform from Teams. If you have a hearing coming up you might want to consider watching a hearing in the virtual context to see how it goes and so you can plan your own presentation of your case on in the virtual world.</p><p><br /></p><p><br /></p><p class="headnote-e" style="background-color: white; box-sizing: border-box; font-family: "Helvetica Neue", Helvetica, Helvetica, Arial, sans-serif; font-size: 1rem; font-weight: bold; line-height: 1.6; margin: 0px; padding: 0px; text-rendering: optimizelegibility;">Terms of Order</p><div class="paragWrapper" style="background-color: white; box-sizing: border-box; font-family: "Helvetica Neue", Helvetica, Helvetica, Arial, sans-serif; font-size: 14px; line-height: 1.5; margin: 0px; padding: 0px; position: relative;"><div class="bootstrap unselectable viibes-marker-toolbox" data-with-parag="1" style="-webkit-tap-highlight-color: rgba(0, 0, 0, 0); box-sizing: border-box; color: #999999; font-family: "Open Sans", "Myriad Web", Verdana, sans-serif; font-size: 0.9em; left: 1127.94px; line-height: 1.5; margin: 0px; padding: 0px; position: absolute; text-size-adjust: 100%; top: -3px; user-select: none;" title="Paragraph tools"><div class="container px-0" style="box-sizing: border-box; font-size: 14px; line-height: 1.5; margin: 0px auto; max-width: 1140px; padding-bottom: 0px; padding-left: 0px !important; padding-right: 0px !important; padding-top: 0px; padding: 0px; width: 12.25px;"><div class="dropleft" style="box-sizing: border-box; line-height: 1.5; margin: 0px; padding: 0px; position: static;"><span class="fas fa-chevron-down" data-toggle="dropdown" style="-webkit-font-smoothing: antialiased; box-sizing: border-box; display: inline-block; font-family: "Font Awesome 5 Free"; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 900; line-height: inherit; text-rendering: auto; transition: all 250ms ease 0s;"></span></div></div></div><p class="section-e" data-viibes-parag="1" data-viibes-start="0" style="box-sizing: border-box; font-family: inherit; font-size: 1rem; line-height: 1.6; margin: 0px 0px 1.25rem; padding: 0px; text-rendering: optimizelegibility;"><b style="box-sizing: border-box; line-height: inherit;"><a id="sec1" name="sec1" style="box-sizing: border-box; color: #008cba; display: inline; line-height: inherit; margin-top: -95px; padding-top: 95px;"></a><span alinea="null" class="canlii_section" section="1" style="box-sizing: border-box; line-height: 1.5;" subsection="null">1.</span> </b>The terms of this Order are set out in Schedule 1.</p></div><p class="headnote-e" style="background-color: white; box-sizing: border-box; font-family: "Helvetica Neue", Helvetica, Helvetica, Arial, sans-serif; font-size: 1rem; font-weight: bold; line-height: 1.6; margin: 0px; padding: 0px; text-rendering: optimizelegibility;">Application</p><div class="paragWrapper" style="background-color: white; box-sizing: border-box; font-family: "Helvetica Neue", Helvetica, Helvetica, Arial, sans-serif; font-size: 14px; line-height: 1.5; margin: 0px; padding: 0px; position: relative;"><div class="bootstrap unselectable viibes-marker-toolbox" data-with-parag="2" style="-webkit-tap-highlight-color: rgba(0, 0, 0, 0); box-sizing: border-box; color: #999999; font-family: "Open Sans", "Myriad Web", Verdana, sans-serif; font-size: 0.9em; left: 1127.94px; line-height: 1.5; margin: 0px; padding: 0px; position: absolute; text-size-adjust: 100%; top: -3px; user-select: none;" title="Paragraph tools"><div class="container px-0" style="box-sizing: border-box; font-size: 14px; line-height: 1.5; margin: 0px auto; max-width: 1140px; padding-bottom: 0px; padding-left: 0px !important; padding-right: 0px !important; padding-top: 0px; padding: 0px; width: 12.25px;"><div class="dropleft" style="box-sizing: border-box; line-height: 1.5; margin: 0px; padding: 0px; position: static;"><span class="fas fa-chevron-down" data-toggle="dropdown" style="-webkit-font-smoothing: antialiased; box-sizing: border-box; display: inline-block; font-family: "Font Awesome 5 Free"; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 900; line-height: inherit; text-rendering: auto; transition: all 250ms ease 0s;"></span></div></div></div><p class="section-e" data-viibes-end="0" data-viibes-parag="2" data-viibes-start="1" style="box-sizing: border-box; font-family: inherit; font-size: 1rem; line-height: 1.6; margin: 0px 0px 1.25rem; padding: 0px; text-rendering: optimizelegibility;"><b style="box-sizing: border-box; line-height: inherit;"><a id="sec2" name="sec2" style="box-sizing: border-box; color: #008cba; display: inline; line-height: inherit; margin-top: -95px; padding-top: 95px;"></a><span alinea="null" class="canlii_section" section="2" style="box-sizing: border-box; line-height: 1.5;" subsection="null">2.</span> </b>This Order applies as of 12:01 a.m. on April 8, 2021.</p></div><p class="schedule-e" style="background-color: white; box-sizing: border-box; font-family: "Helvetica Neue", Helvetica, Helvetica, Arial, sans-serif; font-size: 0.95em; line-height: 1.6; margin: 0px 0px 1.25rem; padding: 0px; text-align: center; text-rendering: optimizelegibility; text-transform: uppercase;">SCHEDULE 1<br style="box-sizing: border-box; line-height: 1.5;" />EVICTIONS</p><p class="headnote-e" style="background-color: white; box-sizing: border-box; font-family: "Helvetica Neue", Helvetica, Helvetica, Arial, sans-serif; font-size: 1rem; font-weight: bold; line-height: 1.6; margin: 0px; padding: 0px; text-rendering: optimizelegibility;">No enforcement of evictions or writs of possession</p><p class="section-e" style="background-color: white; box-sizing: border-box; font-family: "Helvetica Neue", Helvetica, Helvetica, Arial, sans-serif; font-size: 1rem; line-height: 1.6; margin: 0px 0px 1.25rem; padding: 0px; text-rendering: optimizelegibility;"><b style="box-sizing: border-box; line-height: inherit;">1. </b>(1) No person shall attend at a residential premises for the purpose of enforcing any of the following:</p><p class="paragraph-e" style="background-color: white; box-sizing: border-box; font-family: "Helvetica Neue", Helvetica, Helvetica, Arial, sans-serif; font-size: 1rem; line-height: 1.6; margin: 0px 0px 0.5em 3em; padding: 0px; text-indent: -1.5em; text-rendering: optimizelegibility;">1. An order evicting a tenant under the <i style="box-sizing: border-box; line-height: inherit;"><a class="reflex2-link" concatenated-id="811-current-1" href="https://www.canlii.org/en/on/laws/stat/so-2006-c-17/latest/so-2006-c-17.html" style="box-sizing: border-box; color: #027abb; line-height: inherit; text-decoration-line: none;">Residential Tenancies Act, 2006</a></i>.</p><p class="paragraph-e" style="background-color: white; box-sizing: border-box; font-family: "Helvetica Neue", Helvetica, Helvetica, Arial, sans-serif; font-size: 1rem; line-height: 1.6; margin: 0px 0px 0.5em 3em; padding: 0px; text-indent: -1.5em; text-rendering: optimizelegibility;">2. A writ of possession issued by the Superior Court of Justice removing a person from their place of residence.</p><p class="subsection-e" style="background-color: white; box-sizing: border-box; font-family: "Helvetica Neue", Helvetica, Helvetica, Arial, sans-serif; font-size: 1rem; line-height: 1.6; margin: 0px 0px 1.25rem; padding: 0px; text-rendering: optimizelegibility;">(2) Subsection (1) does not apply if,</p><p class="clause-e" style="background-color: white; box-sizing: border-box; font-family: "Helvetica Neue", Helvetica, Helvetica, Arial, sans-serif; font-size: 1rem; line-height: 1.6; margin: 0px 0px 0.5em 3em; padding: 0px; text-indent: -1.5em; text-rendering: optimizelegibility;">(a) in respect of an order described in paragraph 1 of subsection (1), the Landlord and Tenant Board requests that the sheriff expedite the enforcement of the order; or</p><p><a name="SCHEDULE_1_EVICTIONS_913" style="background-color: white; box-sizing: border-box; color: #008cba; font-family: "Helvetica Neue", Helvetica, Helvetica, Arial, sans-serif; font-size: 14px; line-height: inherit;"></a></p><p class="clause-e" style="background-color: white; box-sizing: border-box; font-family: "Helvetica Neue", Helvetica, Helvetica, Arial, sans-serif; font-size: 1rem; line-height: 1.6; margin: 0px 0px 0.5em 3em; padding: 0px; text-indent: -1.5em; text-rendering: optimizelegibility;">(b) in respect of a writ of possession described in paragraph 2 of subsection (1), a judge of the Superior Court of Justice orders that the sheriff expedite the enforcement of the writ.</p>Michael K. E. Thielehttp://www.blogger.com/profile/10247495615982921581noreply@blogger.com0tag:blogger.com,1999:blog-6703393754400182307.post-90787544765422419612021-01-13T11:59:00.000-05:002021-01-13T11:59:01.242-05:00EVICTIONS IN ONTARIO STAYED (JANUARY 13, 2021)<p> EVICTIONS STOPPED---STATE of EMERGENCY</p><p>As we all know, the Province yesterday declared a second state of emergency---stay at home order---to come into effect at 12:01 January 14, 2021. </p><p>What does this mean for landlords who are evicting tenants and for tenants where the Sheriff has posted a Notice to Vacate on the door? At the time that this is written (Jan 13, 2021: 11:50 a.m.), the information is that all evictions in the Ottawa region are being delayed pending clarification from the Province of Ontario. It is assumed that all Sheriff's offices around the province are doing the same thing and calls are going out to advise landlords of the postponement of enforcement of evictions.</p><p>What is the expected clarification from the Province of Ontario? At present the expectation is the evictions will be suspended during this State of Emergency in much the same way as the "last time". Apparently an Order from the Superior Court of Justice is in the process of being obtained.</p><p>The issue of enforcement is to be re-visited every 14 days during the Emergency.</p><p>Please note that the above is officially "unofficial" though it is definitely accurate that currently scheduled eviction enforcement in Ottawa has been suspended.</p><p>Michael K. E. Thiele</p><p>www.ottawalawyers.com</p><p><br /></p>Michael K. E. Thielehttp://www.blogger.com/profile/10247495615982921581noreply@blogger.com0tag:blogger.com,1999:blog-6703393754400182307.post-50059324191789766152020-10-07T20:07:00.002-04:002020-10-07T20:15:22.694-04:00Ontario Residential Rents are Frozen<p style="text-align: justify;"><b style="caret-color: rgb(0, 0, 0); font-family: Helvetica;"><span style="font-size: large;">RENT INCREASE for 2021 is 0% (ZERO!)</span></b></p><p style="caret-color: rgb(0, 0, 0); font-family: Helvetica; text-align: justify; text-size-adjust: auto;"><span style="font-size: large;">Recent amendments to the Residential Tenancies Act (RTA) effectively freeze rents for the calendar year 2021 to the same amount charged in the year 2020. </span></p><p style="caret-color: rgb(0, 0, 0); font-family: Helvetica; text-align: justify; text-size-adjust: auto;"><span style="font-size: large;">New RTA section 3.1 that came into effect on October 1, 2020, provides as follows:</span></p><p style="caret-color: rgb(0, 0, 0); font-family: Helvetica; text-size-adjust: auto;"><span style="font-size: large;"><a id="aDiff3" style="background-color: white; box-sizing: border-box; color: #008cba; font-family: "Helvetica Neue", Helvetica, Helvetica, Arial, sans-serif; line-height: inherit;"></a></span></p><table class="webDiffTable highlightedTable" style="background-color: white; border-collapse: collapse; border-spacing: 0px; border: 1px solid rgb(0, 0, 0); caret-color: rgb(0, 0, 0); empty-cells: show; font-family: Helvetica; margin-bottom: 1.25rem; text-align: justify; text-size-adjust: auto; width: 709px;"><tbody style="box-sizing: border-box;"><tr class="webDiffRow" id="trDiff3" style="background-color: #daebff; box-sizing: border-box;"><td class="webDiffCell webDiffRightSide" style="background-color: inherit; border-width: 0px; box-sizing: border-box; color: #222222; line-height: 1.125rem; margin: 0px; padding-bottom: 0.5625rem; padding-left: 10px !important; padding-right: 10px !important; padding-top: 0.5625rem; padding: 0.5625rem 10px; vertical-align: top; width: 353px;"><div class="body webDiffOpenTag" style="background-color: inherit; border-bottom-width: 0px; border-top-width: 0px; box-sizing: border-box; margin: 0px; min-width: 0px; padding: 0px;"><div class="canliidocumentcontent webDiffOpenTag" id="canliidocumentcontent" style="background-color: inherit; border-bottom-width: 0px; border-top-width: 0px; box-sizing: border-box; margin: 0px; padding: 0px;"><div class="WordSection1 node-law webDiffOpenTag" style="border-bottom-width: 0px; border-top-width: 0px; box-sizing: border-box; letter-spacing: 0px; margin: 0px; padding: 0px;"><div style="box-sizing: border-box; font-family: inherit; font-weight: bold; line-height: 1.6; margin: 0px; padding: 0px; text-rendering: optimizelegibility;"><span class="webDiffRightHighlight" style="background-color: #88ff88; box-sizing: border-box;">Guideline for 2021</span></div><span class="webDiffRightHighlight" style="background-color: #88ff88; box-sizing: border-box;"></span><p class="subsection" style="box-sizing: border-box; font-family: inherit; line-height: 1.6; margin: 0px 0px 1.25rem; padding: 0px; text-rendering: optimizelegibility;"><span class="webDiffRightHighlight" style="background-color: #88ff88; box-sizing: border-box;"></span><span alinea="null" class="canlii_subsection" section="120" style="box-sizing: border-box;" subsection="3.1"><span class="webDiffRightHighlight" style="background-color: #88ff88; box-sizing: border-box;">(3.1)</span></span><span class="webDiffRightHighlight" style="background-color: #88ff88; box-sizing: border-box;"> The guideline for the calendar year 2021 is zero per cent, despite subsection (2) and despite the guideline published under subsection (3) in </span><span style="box-sizing: border-box; font-style: italic; line-height: inherit;"><span class="webDiffRightHighlight" style="background-color: #88ff88; box-sizing: border-box;">The Ontario Gazette</span></span><span class="webDiffRightHighlight" style="background-color: #88ff88; box-sizing: border-box;"> for 2021. 2020, c. 23, Sched. 7, </span><span class="reflex2-link" concatenated-id="811" link-count="1" link1="#sec1" s="1" style="box-sizing: border-box;" title1="#sec1"><span class="webDiffRightHighlight" style="background-color: #88ff88; box-sizing: border-box;">s. 1</span></span><span class="webDiffRightHighlight" style="background-color: #88ff88; box-sizing: border-box;">.</span></p></div></div></div></td></tr></tbody></table><span style="caret-color: rgb(0, 0, 0); font-family: Helvetica; text-size-adjust: auto;"><div style="text-align: justify;"><span style="font-size: x-large;">The new section over-rides previously published rent increase guidelines for the year 2021. New RTA section 3.2 also over-rides the requirement to publish the new 0% Guideline amount in The Ontario Gazette.</span></div></span><div style="caret-color: rgb(0, 0, 0); font-family: Helvetica; text-align: justify; text-size-adjust: auto;"><span style="font-size: large;"><br /></span></div><div style="caret-color: rgb(0, 0, 0); font-family: Helvetica; text-align: justify; text-size-adjust: auto;"><span style="font-size: large;"><i>Does the Rent Freeze affect increases that will take place in the year 2020?</i> </span></div><div style="caret-color: rgb(0, 0, 0); font-family: Helvetica; text-align: justify; text-size-adjust: auto;"><span style="font-size: large;"><br /></span></div><div style="caret-color: rgb(0, 0, 0); font-family: Helvetica; text-align: justify; text-size-adjust: auto;"><span style="font-size: large;">Validly given notices of rent increase that take effect in 2020, and any exempted rent increases (exempt from Guideline Increase amounts) that take effect in 2020, are valid and unaffected by the new RTA rent freeze provisions. Somewhat helpfully, new section 136.1 RTA provides a definition of "rent freeze period" and it is the period that begins January 1, 2021, and ends December 31, 2021.</span></div><div style="caret-color: rgb(0, 0, 0); font-family: Helvetica; text-align: justify; text-size-adjust: auto;"><span style="font-size: large;"><br /></span></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi6iT48jCHXKLUM57HwAk8gxXV4tVTi0ATj1HaoECEsv6zT0LiTVMuI45p1ALI0ZaG6jkqAzzs_vQzOB9Wg85Hb7sCi_3tVEP53bVISQQ_oabRaYScuPpqECdPaPO_R-B6mzl6c-xkAxMNi/s2048/October7.jpg" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em; text-align: justify;"><span style="font-size: large;"><img border="0" data-original-height="2048" data-original-width="1583" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi6iT48jCHXKLUM57HwAk8gxXV4tVTi0ATj1HaoECEsv6zT0LiTVMuI45p1ALI0ZaG6jkqAzzs_vQzOB9Wg85Hb7sCi_3tVEP53bVISQQ_oabRaYScuPpqECdPaPO_R-B6mzl6c-xkAxMNi/s320/October7.jpg" /></span></a></div><div style="caret-color: rgb(0, 0, 0); font-family: Helvetica; text-align: justify; text-size-adjust: auto;"><span style="font-size: large;">WHAT ABOUT RENTAL UNITS THAT ARE NOT SUBJECT TO RENT CONTROL?</span></div><div style="caret-color: rgb(0, 0, 0); font-family: Helvetica; text-align: justify; text-size-adjust: auto;"><span style="font-size: large;"><br /></span></div><div style="caret-color: rgb(0, 0, 0); font-family: Helvetica; text-align: justify; text-size-adjust: auto;"><span style="font-size: large;">It does appear that the rent freeze applies to rental units that would otherwise be exempted from the limits of the guideline amount. Further, there are some residential leases in which landlords have specified multi-year rent increases for the term of longer leases or simply to give guidance to tenants signing leases in properties that are exempt from the guideline increase percentage. Any such agreements to increase rent, or any notices of rent increase already given, are likely to be void as contrary to the RTA. The amendments specifically contemplate and confirm that any Notice of Rent Increase that was <u>lawfully given</u> is now void if the increase was to take effect in the rent freeze period (s. 136.1(3) RTA).</span></div><div style="caret-color: rgb(0, 0, 0); font-family: Helvetica; text-align: justify; text-size-adjust: auto;"><span style="font-size: large;"><br /></span></div><div style="caret-color: rgb(0, 0, 0); font-family: Helvetica; text-align: justify; text-size-adjust: auto;"><span style="font-size: large;"><i>Are there any exceptions?</i> </span></div><div style="caret-color: rgb(0, 0, 0); font-family: Helvetica; text-align: justify; text-size-adjust: auto;"><span style="font-size: large;"><br /></span></div><div style="caret-color: rgb(0, 0, 0); font-family: Helvetica; text-align: justify; text-size-adjust: auto;"><span style="font-size: large;">Yes, there are. However, the exceptions are extremely narrow and very unlikely to apply to the vast majority of tenants. Exemptions do apply to accommodation subject to the <i>Homes for Special Care Act, </i>as well as certain supported group living residences. </span></div><div style="caret-color: rgb(0, 0, 0); font-family: Helvetica; text-align: justify; text-size-adjust: auto;"><span style="font-size: large;"><br /></span></div><div style="caret-color: rgb(0, 0, 0); font-family: Helvetica; text-align: justify; text-size-adjust: auto;"><span style="font-size: large;">Another exemption applies to <i>Agreements to Increase the Rent, </i>however, this should not be interpreted as simply any agreement--the agreement is a special kind of agreement as described in section 121 or 123 <i>RTA</i> (capital expenditures and extra services). Further, exemptions include increases that are permitted in the context of Above Guideline Rent Increase applications/orders.</span></div><div style="caret-color: rgb(0, 0, 0); font-family: Helvetica; text-align: justify; text-size-adjust: auto;"><span style="font-size: large;"><br /></span></div><div style="caret-color: rgb(0, 0, 0); font-family: Helvetica; text-align: justify; text-size-adjust: auto;"><span style="font-size: large;"><i>What about rent increases for 2022?</i> </span></div><div style="caret-color: rgb(0, 0, 0); font-family: Helvetica; text-align: justify; text-size-adjust: auto;"><span style="font-size: large;"><br /></span></div><div style="caret-color: rgb(0, 0, 0); font-family: Helvetica; text-align: justify; text-size-adjust: auto;"><span style="font-size: large;">Subject of course to any future amendments to the RTA, the current changes contemplate the ability to serve a Notice of Rent increase--during the freeze period--to take effect after the freeze period ends. It will be curious to see if landlord's with otherwise exempted units will seek to make up the loss in the year following the freeze. That possibility does not seem to be addressed though I imagine it would not be too difficult to establish that as an illegal rent increase if it could be proven that the rent is being increased to capture a lost increase during the rent freeze period.</span></div><div style="caret-color: rgb(0, 0, 0); font-family: Helvetica; text-size-adjust: auto;"><span style="font-size: large;"><br /></span></div><div style="caret-color: rgb(0, 0, 0); font-family: Helvetica; text-size-adjust: auto;">Michael K. E. Thiele</div><div style="caret-color: rgb(0, 0, 0); font-family: Helvetica; text-size-adjust: auto;">www.ottawalawyers.com</div>Michael K. E. Thielehttp://www.blogger.com/profile/10247495615982921581noreply@blogger.com0tag:blogger.com,1999:blog-6703393754400182307.post-79700097448437003012020-07-30T13:03:00.001-04:002020-07-30T19:36:51.917-04:00Covid Emergency Over: Evictions Resume<div dir="ltr" style="text-align: left;" trbidi="on">
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<b><span style="font-size: x-large;">Can the Sheriff evict tenants again in Ontario?</span></b></div>
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<span style="font-size: large;">People are generally aware that since mid March 2020 tenant evictions have been suspended in Ontario. Any legal evictions that did happen after March 19, 2020, happened as a result of an exceptional circumstance and a Judge of the Superior Court specifically making an exception to the suspension of eviction Orders. Since March 19, 2020, evictions orders issued by the Ontario Landlord and Tenant Board and any Writs of Possession issued by the Superior Court of Justice have been suspended and unenforceable.</span></div>
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<span style="font-size: large;"><b>Technically speaking, how were evictions suspended?</b> </span></div>
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<span style="font-size: large;">Evictions were suspended as a result of the Attorney General for Ontario (i.e. the government), bringing an application to a Judge of the Superior Court of Justice asking for an Order suspending evictions. This application was brought without notice to anyone (i.e. landlords, the public, tenants, interested parties), and the Court issued the Order suspending evictions on March 19, 2020.</span></div>
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<span style="font-size: large;">It is because of this Order dated March 19, 2020, that tenants have not been evicted regardless of whether an eviction Order is in place or not. Further, the Court Order prevented the enforcement of any eviction including evictions based on criminality or impaired safety. Cases involving criminality and serious impaired safety could (and were) brought on an urgent basis to the Ontario Landlord and Tenant Board. The Board, if convinced on motion that the case was about a serious illegal act or impaired safety, did agree to hear such cases even though the Superior Court ordered that the Board's eviction Orders could not be enforced. </span></div>
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<span style="font-size: large;">If the Board issued an "urgent" eviction Order the landlord then (because of this Superior Court of Justice Order dated March 19, 2020), had to bring a motion to the Superior Court asking a Judge to make an exception to the eviction suspension order to allow the eviction of a particular tenant. If that was granted the Sheriff was then directed to enforce the eviction. Over the last month (or so) there have been increasing numbers of such "exceptional orders" as landlords did bring cases forward on grounds of criminality and impaired safety.</span></div>
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<span style="font-size: large;">To be clear, cases involving non-payment of rent, or landlord's own use, or purchaser's own use, or substantial interference with reasonable enjoyment, remained virtually impossible to bring and to enforce. The eviction moratorium barred evictions based on these grounds.</span></div>
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<span style="font-size: large;">The Order that suspended the evictions was amended on July 6, 2020. This amendment was done again on an ex parte basis (without notice). The motion to amend the Order was brought by the Attorney General for Ontario (i.e. the government). The Order was amended to now read that the suspension of evictions would terminate at the end of whichever month in which the Covid Sate of Emergency was declared over. A copy of the July 6, 2020 Order is attached at the end of this article. Take a look at paragraph 2 if you want to see the specific wording.</span></div>
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<span style="font-size: large;">The short (legal) answer is "yes". The Ontario Government passed the<a href="http://canlii.ca/t/54clq" target="_blank"> Reopening Ontario (A Flexible Response to Covid-19) Act, 2020, SO 2020, c17</a>. This Act was in force on July 27, 2020, (though it was introduced earlier and knowledge of it was known as of July 7, 2020, when Bill 195 was introduced in the legislature.</span></div>
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<span style="font-size: large;">The part of the Reopening Ontario Act that determines that the Covid State of Emergency is over is section 17. </span></div>
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<span style="font-size: large;"><i> 17 Unless it has been terminated before this section comes into force, the COVID-19 declared emergency is terminated and Ontario Regulation 50/20 (Declaration of Emergency) is revoked</i>.</span></div>
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<span style="font-size: large;">The July 6, 2020, Order of the Superior Court of Justice provides that the suspension of evictions (created by the Order) ends at the end of the month in which the State of Emergency is declared terminated. The Covid State of Emergency was terminated in July 2020 as per the Reopening Ontario Act (section 17). </span></div>
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<span style="font-size: large;">Therefore the suspension of evictions continues until the end of July 2020 (in accordance with the Order) and starting August 4, 2020, evictions may again be enforced in Ontario. Of course, this is subject to other procedural rights and legal process. Landlords must still get Orders from the Ontario Landlord and Tenant Board and the procedural aspects of serving Notices of Termination, waiting the required time, filling out an application and filing it, and getting a hearing date, having a hearing, and waiting for an Order must still be followed. Nothing in the lifting of the suspension of eviction has created a fast track for evictions or over-ridden the application process under the Residential Tenancies Act.</span></div>
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<span style="font-size: large;"><b>Special Note</b> </span></div>
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<span style="font-size: large;">At the time of writing this article, the Advocacy Centre of Tenants Ontario (ACTO) has filed an urgent motion to the Superior Court asking for the amended Order that allows the suspension of evictions to resume to be set aside. The relief that ACTO is seeking is complicated but we should know very shortly what comes of this motion.</span></div>
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Michael K. E. Thielehttp://www.blogger.com/profile/10247495615982921581noreply@blogger.com0tag:blogger.com,1999:blog-6703393754400182307.post-40538573866538935072020-07-24T08:22:00.003-04:002020-07-27T09:46:50.217-04:00Bill 184: Royal Assent: New Amendments<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-family: "timesnewromanps"; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: large;"><b>NEW AMENDMENTS TO THE RESIDENTIAL TENANCIES ACT</b></span><br />
<span style="font-family: "timesnewromanps";"><b><br /></b></span>
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<tr><td class="tr-caption" style="text-align: center;"><span style="font-size: small;"><a href="https://commons.wikimedia.org/w/index.php?curid=91287569" target="_blank">Ontario Legislature, By abdallahh</a></span></td></tr>
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<span style="font-family: "timesnewromanps";">The Residential Tenancies Act has been amended and the Bill doing so is Bill 184. The legislative history is as follows: </span><br />
<span style="font-family: "timesnewromanpsmt";"><br /></span>
<span style="font-family: "timesnewromanpsmt";">1st Reading </span><span style="font-family: "timesnewromanpsmt";">March 12, 2020</span><span style="font-family: "timesnewromanpsmt";"> </span><br />
<span style="font-family: "timesnewromanpsmt";"><br /></span>
<span style="font-family: "timesnewromanpsmt";">2nd Reading </span><span style="font-family: "timesnewromanpsmt";">May 27, 2020</span><br />
<span style="font-family: "timesnewromanpsmt";"><br /></span>
<span style="font-family: "timesnewromanpsmt";">3</span><span style="font-family: "timesnewromanpsmt";">rd Reading </span><span style="font-family: "timesnewromanpsmt";">July 21, 2020</span><br />
<span style="font-family: "timesnewromanpsmt";"><br /></span>
<span style="font-family: "timesnewromanpsmt";">Royal Assent </span><span style="font-family: "timesnewromanpsmt";"> July 21, 2020</span><span style="font-family: "timesnewromanps";"> </span><br />
<span style="font-family: "timesnewromanps";"><br /></span>
<span style="font-family: "timesnewromanps";"><b>So when do the amendments take effect? Now? </b> </span><br />
<span style="font-family: "timesnewromanps";"><br /></span>
<span style="font-family: "timesnewromanps";">Take a look at section 41 (scroll to the end of this article), it appears that the law takes effect on a day to be named by proclamation of the Lieutenant Governor. (i.e. some future date). ** please note that it appears that parts of the Protecting Tenants and Strengthening Community Housing Act, 2020, is in force immediately and other parts are not in force until they are proclaimed. Hence, as you will see that the Landlord and Tenant Board is treating some forms as immediately void and needing replacement (i.e. the N12), and other parts of the legislation that do not yet have forms have also not yet been proclaimed. To figure out the parts in force immediately you have to compare the Act with section 41 (end of this article).</span><br />
<span style="font-family: "timesnewromanps";"><br /></span>
<span style="font-family: "timesnewromanps";">Below is a handy summary of the changes and new requirements arising from this Bill (kindly provided by the legislature). </span><br />
<span style="font-family: "timesnewromanps";"><br /></span>
<span style="font-family: "timesnewromanps";">Below the summary is the text of the law which shows the wording of the new sections of the RTA. As of this morning, Canlii does not yet have the amendments to the RTA up on the site but I imagine they will be there soon (usually in grey until proclaimed in force). </span><br />
<span style="font-family: "timesnewromanps";"><br /></span>
<span style="font-family: "timesnewromanps";">The amendments of course will be keeping the lawyers busy! I will be commenting on the amendments in due course. At present, the summary is probably as useful as anything I can say. What will really change and be significant is when Regulations are finally made and the LTB updates its Rules--and therefore all of the new forms that are going to be needed to allow all of these changes to be implemented. It seems pretty clear that the Board's powers are dramatically expanded and the Board will be hearing many more cases and dealing with entirely "new" things that typically were in the small claims court. As the Regs, Rules, Forms, Guidelines, roll out we will begin to see how this new version of the RTA and the expanded LTB will hope to function. </span><br />
<span style="font-family: "timesnewromanps";"><br /></span>
<span style="font-family: "timesnewromanps";">Michael K. E. Thiele</span><br />
<span style="font-family: "timesnewromanps";">www.ottawalawyers.com </span><br />
<span style="font-family: "timesnewromanps";"><br /></span>
<span style="font-family: "timesnewromanps";"><span style="font-size: 14px;"><br /></span></span>
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<span style="font-family: "timesnewromanps"; font-weight: 700;"><span style="font-size: large;">SCHEDULE 4 RESIDENTIAL TENANCIES ACT, 2006</span></span><br />
<span style="font-family: "timesnewromanps"; font-size: 9pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">The Schedule amends the </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Residential Tenancies Act, 2006</span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">. The amendments include the following:</span><br />
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<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">New exemption from Act</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">Under new section 5.2 of the Act, a rental unit that is a site on which a land lease home is located is exempt from the Act if the unit is owned by an employer and is provided to an employee in connection with their employment.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Compensation for tenant</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">Under new section 49.1, a landlord who gives a notice of termination of the tenancy to a tenant on behalf of a purchaser under </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">section 49 is required to compensate the tenant in an amount equal to one month’s rent or to offer the tenant another rental </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">unit acceptable to the tenant.</span><br />
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<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">Currently, under section 52 and subsections 54 (1) and (2), a landlord is required to compensate a tenant if the landlord gives a notice of termination of the tenancy for the purposes of demolition or conversion to non-residential use or for the purpose of repairs or renovations, provided that the residential complex in which the rental unit is located contains at least five residential units. Subsections 52 (2) and 54 (3) and (4) are added to also impose an obligation to compensate the tenant if the residential complex contains fewer than five residential units.</span><br />
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<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">Currently, under section 57, the Board may make various orders if, on application by a former tenant, the Board determines that a landlord has given a notice of termination in bad faith. The section is amended to permit the Board to make an order requiring the landlord to pay a specified sum to the former tenant as general compensation in an amount not exceeding the equivalent of 12 months of the last rent charged to the former tenant.</span><br />
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<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Applications for order terminating tenancy under s. 69</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">New section 71.1 sets out requirements a landlord must comply with when filing an application under section 69 for an order terminating a tenancy and evicting a tenant that is based on a notice of termination given under certain sections. Under new subsection 71.1 (1), the affidavit required in respect of an application based on a notice under section 48 (Notice, landlord personally, etc., requires unit) or section 49 (Notice, purchaser personally requires unit) must be filed at the same time as the application. Under new subsection 71.1 (3), the landlord must indicate in the application whether or not the landlord has, within two years prior to filing the application, given any other notice of termination under section 48, 49 or 50 (Notice, demolition, conversion or repairs) and must, with respect to each notice, set out the specified information in the application.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">Under new subsections 72 (3) and 73 (2), the Landlord and Tenant Board, in determining the good faith of the landlord or the purchaser in an application under section 69 that is based on a notice of termination given under section 48, 49 or 50, may consider any evidence the Board considers relevant that relates </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">to the landlord’s or purchaser’s previous use of n</span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">otices of termination under those sections.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Tenant issues in s. 69 application for non-payment of rent</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">Currently, under subsection 82 (1), at a hearing of an application under section 69 that is based on a notice of termination under section 59 (non-payment of rent), the tenant may raise any issue that could be the subject of an application made by the tenant under the Act. Under section 82, as re-enacted, a tenant may do so if the tenant complies with specified requirements (including giving of advance written notice of intent to raise the issue) or provides an explanation satisfactory to the Board explaining why the requirements could not be met.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Power of Board re eviction</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">Section 83 is amended to provide that in determining whether to grant an application to evict a tenant based on arrears in rent arising during the period beginning on March 17, 2020 and ending on the prescribed date, the Board shall consider whether the landlord has attempted to negotiate an agreement with the tenant including </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">terms of payment for the tenant’s arrears.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Applications by landlord for compensation</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">Currently, under sections 87 and 89, an application for arrears of rent, for compensation for the use and occupation of a rental unit by an overholding tenant or for compensation for damage to the rental unit may be made only if the tenant is in possession </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">of the unit. Sections 87 and 89 are amended to provide that such applications may be made while the tenant is in possession of the unit or no later than one year after the tenant or former tenant ceased to be in possession of the unit.</span><br />
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<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">Under new section 88.1, a landlord may make an application for compensation for interference with the reasonable enjoyment of the residential complex or with another lawful right, privilege or interest of the landlord and, under new section 88.2, a landlord may make an application for compensation for failure to pay utility costs that a tenant or former tenant was required to pay. Such applications may be made while the tenant is in possession of the unit or no later than one year after the tenant or former tenant ceased to be in possession of the unit.</span><br />
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<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">Section 189.0.1 is added to provide that if, at the time a landlord makes any of the applications described above, the tenant or former tenant is no longer in possession, the landlord must give the tenant or former tenant a copy of the application and a copy of any notice of hearing issued by the Board and must, in specified circumstances, file with the Board a certificate of service on the tenant or former tenant.</span><br />
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<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Rent increase deemed not void</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">New section 135.1 deals with increases in rent that would otherwise be void as a result of </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">a landlord’s failure to give </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">at least 90 days</span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">’ written notice of the landlord’s intention to increase the rent. Under subsections 135.1 (1) and (2), the increase in rent </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">is deemed not to be void if the tenant has paid the increased rent in respect of each rental period for at least 12 consecutive months, provided the tenant has not, within one year after the date the increase is first charged, made an application in which the validity of the rent increase is in issue.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Mobile home parks and land lease communities</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">Under new section 165.1, if a landlord of a mobile home park or land lease community charges a tenant under the terms of a written agreement for any prescribed services and facilities, and if the prescribed circumstances apply, the prescribed services and facilities shall not be cons</span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">idered services and facilities that fall within the definition of “rent” </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">that applies for the purposes of the Act.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">Current section 167 sets out a special rule for above guideline rent increases in mobile home parks and land lease communities relating to capital expenditures for infrastructure work required by a government. Section 167 is amended to provide that the special rule applies regardless of whether the infrastructure work is required by a government. Section 167 is also amended to provide that any determination by the Board of how the increase may be taken must be done in accordance with the prescribed rules.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Mediation or other dispute resolution process</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">Currently, under subsection 194 (1), the Board may attempt to mediate a settlement of any matter that is the subject of an application or agreed upon by the parties if the parties consent to the mediation. Subsection 194 (1), as re-enacted, provides that the Board may attempt to settle any such matter through mediation or another dispute resolution process.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Agreement to settle matter</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">Subsection 206 (3) is re-enacted and subsection 206 (3.1) is added to allow the Board to include in an order under subsection 206 (1) a provision allowing a landlord to make an application under section 78 if the tenant fails to comply with one or more of the terms specified in the order.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Production order</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">Under new section 231.1, a provincial judge or a justice of the peace may, if the specified requirements are met, issue a production order to a person, other than a person under investigation for an offence, requiring the person to produce documents, copies of documents or data or prepare a document based on documents or data already in existence and produce it.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Penalties</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">The maximum fines of $25,000 (in the case of a person other than a corporation) and $100,000 (in the case of a corporation) set out in subsections 238 (1) and (2) are increased to $50,000 and $250,000, respectively.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Transitional provisions and regulation-making powers</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">Several amendments are made to the regulation-making powers set out in sections 241 and 241.1. In addition to various transitional provisions added to the Act, section 241.3 is added to give the Lieutenant Governor in Council the power to make regulations governing transitional matters.</span><br />
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<span style="font-family: "timesnewromanps"; font-weight: 700;"><span style="font-size: large;">SCHEDULE 4 RESIDENTIAL TENANCIES ACT, 2006</span></span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">1 The </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic; font-weight: 700;">Residential Tenancies Act, 2006 </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">is amended by adding the following section: Other exemption from Act, site for land lease home</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">5.2 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(1) This Act does not apply with respect to a rental unit that is a site on which a land lease home is located, if all of the following requirements are met:</span><br />
<ol>
<li style="font-family: TimesNewRomanPSMT; font-size: 10pt;"><span style="font-size: 10pt;">Therentalunitisownedbyanemployerandisprovidedtoanemployee,ortoanemployeeandtheemployee’sspouse, in connection with the employee’s employment.</span></li>
<li style="font-family: TimesNewRomanPSMT; font-size: 10pt;"><span style="font-size: 10pt;">Therentalunitissubjecttoatenancyinrespectofwhichatenancyagreementisfirstenteredintoonorafterthedaythe </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Protecting Tenants and Strengthening Community Housing Act, 2020 </span><span style="font-size: 10pt;">receives Royal Assent between,</span><br />
<ol style="list-style-type: lower-roman;">
<li style="font-size: 10pt;"><span style="font-size: 10pt;">the employer, as landlord, and the employee, as tenant, or</span></li>
<li style="font-size: 10pt;"><span style="font-size: 10pt;">the employer, as landlord, and the </span><span style="font-size: 10pt;">employee and the employee’s spouse, as joint tenants.</span></li>
</ol>
</li>
</ol>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Application of exemption</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(2) The exemption under subsection (1) applies with respect to a rental unit until the tenancy is terminated.</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Same</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(3) Subsection (2) applies with respect to a rental unit even if,</span><br />
<ol style="list-style-type: none;">
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(a) the employee ceases to be employed before the tenancy is terminated; or</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(b) </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">the employee dies before the tenancy is terminated, provided the employee’s spouse is a tenant of the rental unit.</span></li>
</ol>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">2 Subsection 6 (1) of the Act is amended by striki</span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">ng out “48.1, 51” in the portion before clause (a) and substituting “48.1, 49.1, 51”.</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">3(1) </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Subsection7(1)oftheActisamendedbystrikingout“48.1,51”intheportionbeforeparagraph1andsubstituting “48.1, 49.1, 51”.</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">(2) The French version of s</span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">ubsection 7 (5) of the Act is amended by striking out “</span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">qui </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">relève”</span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">. 4 Section 11 of the Act is amended by adding the following subsections:</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br />Non-application</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(3) This section does not apply with respect to a tenancy if,</span><br />
<ol style="list-style-type: none;">
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(a) the tenancy begins on or after the day the </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Protecting Tenants and Strengthening Community Housing Act ,2020 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">receives Royal Assent; and</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(b) section 12.1 applies with respect to the tenancy agreement entered into in respect of the tenancy.</span></li>
</ol>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Transition, subs. (3)</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(4) Subsection (3) applies with respect to a tenancy agreement referred to in that subsection even if the agreement was entered into before the day the </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Protecting Tenants and Strengthening Community Housing Act, 2020 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">receives Royal Assent.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">5 The Act is amended by adding the following section: Compensation, notice under s. 49 (1) or (2)</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">49.1 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(1) A landlord shall compensate a tenant </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">in an amount equal to one month’s rent or offer the tenant another rental unit </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">acceptable to the tenant if,</span><br />
<ol style="list-style-type: none;">
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(a) the landlord gives the tenant a notice of termination of the tenancy on behalf of a purchaser under subsection 49 (1) or (2); and</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(b) thenoticeofterminationisgivenonorafterthedaythe</span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">ProtectingTenantsandStrengtheningCommunityHousingAct, 2020 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">receives Royal Assent.</span></li>
</ol>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Obligation under subs. (1)</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(2) Despite section 18, the obligation to compensate the tenant under subsection (1) remains an obligation of the landlord who gives the notice of termination of the tenancy on behalf of the purchaser and does not become an obligation of the purchaser.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">6 Section 52 of the Act is amended by adding the following subsection:</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Same, fewer than five residential units</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(2) A landlord shall compensate a tenant in an amount equal t</span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">o one month’s rent o</span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">r offer the tenant another rental unit acceptable to the tenant if, </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">21 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">22</span></div>
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<ol style="list-style-type: none;">
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(a) the tenant receives notice of termination of the tenancy for the purposes of demolition or conversion to non-residential use;</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(b) the notice of termination is given on or after the day the </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Protecting Tenants and Strengthening Community Housing Act, 2020 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">receives Royal Assent;</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(c) the residential complex in which the rental unit is located contains fewer than five residential units; and</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(d) in the case of a demolition, it was not ordered to be carried out under the authority of any other Act.</span></li>
</ol>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">7 Section 54 of the Act is amended by adding the following subsections:</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Same, fewer than five residential units</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(3) A landlord shall compensate a tenant who receives notice of termination of a tenancy under section 50 for the purpose of repairs or renovations in an amount equal to one month</span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">’</span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">s rent or shall offer the tenant another rental unit acceptable to the tenant if,</span><br />
<ol style="list-style-type: none;">
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(a) the tenant does not give the landlord notice under subsection 53 (2) with respect to the rental unit;</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(b) thenoticeofterminationisgivenonorafterthedaythe</span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">ProtectingTenantsandStrengtheningCommunityHousingAct,</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">2020 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">receives Royal Assent and section 55 does not apply;</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(c) the residential complex in which the rental unit is located contains fewer than five residential units; and</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(d) the repair or renovation was not ordered to be carried out under the authority of this or any other Act.</span></li>
</ol>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Same</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(4) A landlord shall compensate a tenant who receives notice of termination of a tenancy under section 50 for the purpose of repairs or renovations in an amount equal to the rent for the lesser of one month and the period the unit is under repair or renovation if,</span><br />
<ol style="list-style-type: none;">
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(a) the tenant gives the landlord notice under subsection 53 (2) with respect to the rental unit;</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(b) the notice of termination is given on or after the day the </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Protecting Tenants and Strengthening Community Housing Act, </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">2020 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">receives Royal Assent and section 55 does not apply;</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(c) the residential complex in which the rental unit is located contains fewer than five residential units; and</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(d) the repair or renovation was not ordered to be carried out under the authority of this or any other Act.</span></li>
</ol>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">8 Section 55.1 of the Act is amended,</span><br />
<ol style="list-style-type: none;">
<li><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">(a) </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">by striking out “48.1, 52” and substituting “48.1, 49.1, 52”; and</span></li>
<li><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">(b) </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">by striking out “48 or 50” at the end and substituting “48, 49 or 50”.</span></li>
</ol>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">9 (1) Paragraph 1 of subsection 57 (3) of the Act is repealed and the following substituted:</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">1. An order that the landlord pay a specified sum to the former tenant for all or any portion of any increased rent that the former tenant has incurred or will incur for a one-year period after vacating the rental unit.</span><br />
<ol style="list-style-type: none;">
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">1.1 An order that the landlord pay a specified sum to the former tenant as general compensation in an amount not exceeding the equivalent of 12 months of the last rent charged to the former tenant. An order under this paragraph may be made regardless of whether the former tenant has incurred any actual expenses or whether an order is made under paragraph 2.</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">1.2 An order that the landlord pay a specified sum to the former tenant for reasonable out-of-pocket moving, storage and other like expenses that the former tenant has incurred or will incur.</span></li>
</ol>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">(2) Section 57 of the Act is amended by adding the following subsection:</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Transition</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(8) This section, as it read immediately before subsection 9 (1) of Schedule 4 to the </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Protecting Tenants and Strengthening Community Housing Act, 2020 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">comes into force, continues to apply with respect to an application under subsection (1) that is made before that day and has not been finally determined before that day, even if the hearing of the application is on or after that day.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">10 (1) Subsection 5</span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">7.1 (2) of the Act is amended by striking out “</span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">more than </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">one year” and substituting “</span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">more than two </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">years”.</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">(2) Section 57.1 of the Act is amended by adding the following subsections:</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span></div>
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<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Transition, application pending</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(2.1) An application that was made under subsection (1) before the day subsection 10 (1) of Schedule 4 to the </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Protecting Tenants and Strengthening Community Housing Act, 2020 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">comes into force and was not finally determined before that day is deemed to comply with subsection (2), as it reads on that day, if the application was made more than one year, but not more than two years, after the former tenant vacated the rental unit.</span><br />
<br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Transition, previous application dismissed</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(2.2) If a previous application made by the former tenant was dismissed before the day subsection 10 (1) of Schedule 4 to the </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Protecting Tenants and Strengthening Community Housing Act, 2020 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">comes into force for failure to comply with subsection (2), as it read before that day, the former tenant may make another application under subsection (1) more than one year, but not more than two years, after the former tenant vacated the rental unit.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">11 (1) The Act is amended by adding the following section: Application based on certain notice<br />Affidavit under s. 72 (1)</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">71.1 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(1) A landlord who, on or after the day subsection 11 (1) of Schedule 4 to the </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Protecting Tenants and Strengthening Community Housing Act, 2020 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">comes into force, files an application under section 69 based on a notice of termination given under section 48 or 49 shall file the affidavit required under subsection 72 (1) at the same time as the application is filed.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Non-compliance with subs. (1)</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(2) The Board shall refuse to accept the application for filing if the landlord has not complied with subsection (1).</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">(2) Section 71.1 of the Act, as enacted by subsection (1), is amended by adding the following subsections:</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Previous use of notices under s. 48, 49 or 50</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(3) A landlord who, on or after the day subsection 11(2) of Schedule 4 to the </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Protecting Tenants and Strengthening Community Housing Act, 2020 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">comes into force, files an application under section 69 based on a notice of termination given under section 48, 49 or 50 shall, in the application,</span><br />
<ol style="list-style-type: none;">
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(a) indicate whether or not the landlord has, within two years prior to filing the application, given any other notice under section 48, 49 or 50 in respect of the same or a different rental unit; and</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(b) set out, with respect to each previous notice described in clause (a),</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<ol style="list-style-type: none;">
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(i) thedatethenoticewasgiven,</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(ii) the address of the rental unit in respect of which the notice was given,</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(iii) theidentityoftheintendedoccupantinrespectofwhomthenoticewasgivenifthenoticewasgivenundersection 48 or 49, and</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(iv) suchotherinformationasmayberequiredbytheRules.</span></li>
</ol>
</li>
</ol>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Non-compliance with subs. (3)</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(4) The Board shall refuse to accept the application for filing if the landlord has not complied with subsection (3).</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">12 Section 72 of the Act is amended by adding the following subsections:</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Determination of good faith</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(3) In determining the good faith of the landlord or the purchaser, as applicable, in an application described in subsection (1), (1.1) or (2), the Board may consider any evidence the Board considers relevant that relates </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">to the landlord’s or purchaser’s </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">previous use of notices of termination under section 48, 49 or 50 in respect of the same or a different rental unit.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Application of subs. (3)</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(4) Subsection (3) applies with respect to any application described in subsection (1), (1.1) or (2) that,</span><br />
<ol style="list-style-type: none;">
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(a) is made on or after the day section 12 of Schedule 4 to the </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Protecting Tenants and Strengthening Community Housing</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Act, 2020 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">comes into force; or</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(b) was made before that day and was not finally determined before that day.</span></li>
</ol>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">13 Section 73 of the Act is amended by adding the following subsections:</span><br />
<br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Determination of good faith</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(2) In determining the good faith of the landlord in an application described in subsection (1), the Board may consider any evidence the Board considers relevant that relates to th</span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">e landlord’s previous use of notices </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">of termination under section 48, 49 or 50 in respect of the same or a different rental unit.</span></div>
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<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">23</span></div>
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<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">24</span></div>
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<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Application of subs. (2)</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(3) Subsection (2) applies with respect to any application described in subsection (1) that,</span><br />
<ol style="list-style-type: none;">
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(a) is made on or after the day section 13 of Schedule 4 to the </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Protecting Tenants and Strengthening Community Housing</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Act, 2020 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">comes into force; or</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(b) wasmadebeforethatdayandwasnotfinallydeterminedbeforethatday.</span></li>
</ol>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">14 Subsection 73.1 (1) of the Act is amended,</span><br />
<ol style="list-style-type: none;">
<li><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">(a) </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">by striking out “48.1, 52” and substituting “48.1, 49.1, 52”; and</span></li>
<li><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">(b) </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">by striking out “48 or 50” and substituting “48, 49 or 50”.</span></li>
</ol>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">15 (1) Paragraph 2 of subsection 78 (1) of the Act is amended by </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">striking out “A settlement mediated under section 194” at the beginning and substituting “A settlement agreed to under section 194”.</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">(2) </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Paragraph 2 of subsection 78 (3) of the Act is amended by striking out “A settlement mediated under section 194” </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">at th</span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">e beginning and substituting “A settlement agreed to under section 194”.</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">(3) </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Paragraph 4 of subsection 78 (4) of the Act is amended by striking out “If a settlement was mediated under section 194” </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">at the beginning </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">and substituting “If a settlement was agreed to under section 194”.</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">(4) </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Paragraph 5 of subsection 78 (7) of the Act is amended by striking out “If a settlement was mediated under section 194” </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">at the beginning </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">and substituting “If a settlement was agreed to under section 194”.</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">(5) </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Subsection78(12)oftheActisamendedbystrikingout“asettlementmediatedundersection194”andsubstituting “a settlement agreed to under section 194”.</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">16 Section 82 of the Act is repealed and the following substituted:</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Tenant issues</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">82 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(1) At a hearing of an application by a landlord under section 69 for an order terminating a tenancy and evicting a tenant based on a notice of termination under section 59, the Board shall permit the tenant to raise any issue that could be the subject of an application made by the tenant under this Act if the tenant,</span><br />
<ol style="list-style-type: none;">
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(a) complies with the requirements set out in subsection (2); or</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(b) provides an explanation satisfactory to the Board explaining why the tenant could not comply with the requirements set out in subsection (2).</span></li>
</ol>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Requirements to be met by tenant</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(2) The requirements referred to in subsection (1) are the following:</span><br />
<ol>
<li style="font-family: TimesNewRomanPSMT; font-size: 10pt;"><span style="font-size: 10pt;">The tenant shall give advance notice to the landlord of the tenant’s intent to raise the issue at the hearing.</span></li>
<li style="font-family: TimesNewRomanPSMT; font-size: 10pt;"><span style="font-size: 10pt;">The notice shall be given within the time set out in the Rules.</span></li>
<li style="font-family: TimesNewRomanPSMT; font-size: 10pt;"><span style="font-size: 10pt;">ThenoticeshallbegiveninwritingandshallcomplywiththeRules.</span></li>
</ol>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Orders</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(3) If a tenant raises an issue under subsection (1), the Board may make any order in respect of the issue that it could have made had the tenant made an application under this Act.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Transition</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(4) This section, as it reads on the day section 16 of Schedule 4 to the </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Protecting Tenants and Strengthening Community Housing Act, 2020 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">comes into force, applies to any hearing held after that day that relates to an application that was filed before that day.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">17 (1) </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Subsection 83 (4) of the Act is amended by striking out “48.1, 52” and substituting “48.1, 49.1, 52”. </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">(2) Subsection 83 (5) of the Act is amended,</span><br />
<ol style="list-style-type: none;">
<li><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">(a) by </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">striking out “subsection 54 (2) applies” and substituting “subsection 54 (2) or (4) applies; and</span></li>
<li><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">(b) </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">by striking out “subsection 54 (2)” at the end and substituting “subsection 54 (2) or (4), as applicable.</span></li>
</ol>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">(3) Section 83 of the Act is amended by adding the following subsections:</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Refusal for certain arrears of rent</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(6) Without restricting the generality of subsections (1) and (2), if a hearing is held in respect of an application under section 69 for an order evicting a tenant based on arrears of rent arising in whole or in part during the period beginning on March 17, </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">2020 and ending on the prescribed date, in determining whether to exercise its powers under subsection (1) the Board shall consider whether the landlord has attempted to negotiate an agreement with the tenant including terms of payment for the </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">tenant’s arrears.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span></div>
</div>
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<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Application of subs. (6)</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(7) Subsection (6) applies with respect to any application described in that subsection that,</span><br />
<ol style="list-style-type: none;">
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(a) is made on or after the day subsection 17 (3) of Schedule 4 to the </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Protecting Tenants and Strengthening Community</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Housing Act, 2020 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">comes into force; or</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(b) wasmadebeforethatdayandwasnotfinallydeterminedbeforethatday.</span></li>
</ol>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Same</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(8) For greater certainty, subsection (6) applies whether or not a date has been prescribed for the purposes of that subsection.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">18 (1) Subsections 87 (1) and (3) of the Act are repealed and the following substituted:</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br />Applications</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br />Application for arrears of rent</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(1) A landlord may apply to the Board for an order requiring a tenant or former tenant to pay arrears of rent if,</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(a) the tenant or former tenant did not pay rent lawfully required under the tenancy agreement; and</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(b) in the case of a tenant or former tenant no longer in possession of the rental unit, the tenant or former tenant ceased to be in possession on or after the day subsection 18 (1) of Schedule 4 to the </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Protecting Tenants and Strengthening Community Housing Act, 2020 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">comes into force.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Application under subs. (1)</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(1.1) An application under subsection (1) may be made,</span><br />
<ol style="list-style-type: none;">
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(a) while the tenant is in possession of the rental unit; or</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(b) no later than one year after the tenant or former tenant ceased to be in possession of the rental unit.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">.....</span></li>
</ol>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Application for compensation for use and occupation of unit</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(3) A landlord may apply to the Board for an order requiring a tenant or former tenant to pay compensation for the use and occupation of the rental unit after a notice of termination or an agreement to terminate the tenancy has taken effect if,</span><br />
<ol style="list-style-type: none;">
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(a) the tenant or former tenant is or was in possession of the rental unit after the termination of the tenancy; and</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(b) in the case of a tenant or former tenant no longer in possession of the rental unit, the tenant or former tenant ceased to be in possession on or after the day subsection 18 (1) of Schedule 4 to the </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Protecting Tenants and Strengthening Community Housing Act, 2020 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">comes into force.</span></li>
</ol>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Application under subs. (3)</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(3.1) An application under subsection (3) may be made,</span><br />
<ol style="list-style-type: none;">
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(a) while the tenant or former tenant is in possession of the rental unit; or</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(b) no later than one year after the tenant or former tenant ceased to be in possession of the rental unit.</span></li>
</ol>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">(2) </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Subsection 87 (4) of the Act is amended by striking out “</span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">both </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">owing” and substituting “</span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">both </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">owing by a tenant”. </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">(3) Subsection 87 (5) of the Act is amended,</span><br />
<ol style="list-style-type: none;">
<li><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">(a) </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">by striking out “tenant” in the portion before paragraph 1 and substituting “tenant or former tenant”; and</span></li>
<li><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">(b) </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">by striking out “tenant” in paragraph 1 and substituting “tenant or former tenant”.</span></li>
</ol>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">(4) Section 87 of the Act is amended by adding the following subsections: Application</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(6) This section applies with respect to,</span><br />
<ol style="list-style-type: none;">
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(a) arrears of rent described in subsection (1), even if the arrears accrued before the day subsection 18(1) of Schedule 4 to the </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Protecting Tenants and Strengthening Community Housing Act, 2020 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">comes into force;</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(b) the use and occupation of the rental unit described in subsection (3), even if the use and occupation occurred before that day; and</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(c) charges described in subsection (5), even if the charges were incurred before that day.</span></li>
</ol>
</div>
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<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">25</span></div>
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<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">26</span></div>
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<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Transition, court proceedings not affected</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(7) Despitesubsection168(2),there-enactmentofsubsections(1)and(3)bysubsection18(1)ofSchedule4tothe</span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Protecting Tenants and Strengthening Community Housing Act, 2020 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">does not affect any court proceeding for an order for the payment of arrears of rent or compensation for the use and occupation of the rental unit, or for the payment of both, that is commenced before the day that subsection comes into force and has not been finally determined before that day.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">19 The Act is amended by adding the following section:</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br />Application for compensation for interference with reasonable enjoyment, etc.</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">88.1 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(1) A landlord may apply to the Board for an order requiring a tenant or former tenant to pay costs described in subsection (4) if,</span><br />
<ol style="list-style-type: none;">
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(a) while the tenant or former tenant is or was in possession of the rental unit, the conduct of the tenant or former tenant, another occupant of the rental unit or a person permitted in the residential complex by the tenant or former tenant is or was such that it substantially interferes or interfered with,</span><br />
<ol style="list-style-type: none;">
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(i) the reasonable enjoyment of the residential complex for all usual purposes by the landlord, or</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(ii) another lawful right, privilege or interest of the landlord; and</span></li>
</ol>
</li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(b) in the case of a tenant or former tenant no longer in possession of the rental unit, the tenant or former tenant ceased to be in possession on or after the day section 19 of Schedule 4 to the </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Protecting Tenants and Strengthening Community Housing Act, 2020 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">comes into force.</span></li>
</ol>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Application under subs. (1)</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(2) An application under subsection (1) may be made,</span><br />
<ol style="list-style-type: none;">
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(a) while the tenant is in possession of the rental unit; or</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(b) no later than one year after the tenant or former tenant ceased to be in possession of the rental unit.</span></li>
</ol>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Same</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(3) If the Board makes an order requiring payment under subsection (1) and for the termination of the tenancy, the Board shall set off against the amount required to be paid by the tenant the amount of any rent deposit or interest on a rent deposit that would be owing to the tenant on termination.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Compensation for interference with reasonable enjoyment, etc.</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(4) The costs referred to in subsection (1) are reasonable out-of-pocket expenses that the landlord has incurred or will incur as a result of an interference described in clause (1) (a) and do not include costs that the landlord may recover in an application under section 88.2 or 89.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Application</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(5) This section applies with respect to,<br />(a) an interference described in clause (1) (a), even if the interference occurred before the day section 19 of Schedule 4 to</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">the </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Protecting Tenants and Strengthening Community Housing Act, 2020 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">comes into force; and</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Transition, court proceedings not affected</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(6) Despite subsection 168 (2), the enactment of this section by section 19 of Schedule 4 to the </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Protecting Tenants and Strengthening Community Housing Act, 2020 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">does not affect any court proceeding for an order for the payment of compensation for an interference described in clause (1) (a) that is commenced before the day that section comes into force and has not been finally determined before that day.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">20 The Act is amended by adding the following section: Application for compensation for failure to pay utility costs</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">88.2 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(1) A landlord may apply to the Board for an order requiring a tenant or former tenant to pay costs described in subsection (4) if,</span><br />
<ol style="list-style-type: none;">
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(a) while the tenant or former tenant is or was in possession of the rental unit, the tenant or former tenant failed to pay utility costs that they were required to pay under the terms of the tenancy agreement; and</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(b) in the case of a tenant or former tenant no longer in possession of the rental unit, the tenant or former tenant ceased to be in possession on or after the day section 20 of Schedule 4 to the </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Protecting Tenants and Strengthening Community Housing Act, 2020 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">comes into force.</span></li>
</ol>
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<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Application under subs. (1)</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(2) An application under subsection (1) may be made,</span><br />
<ol style="list-style-type: none;">
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(a) while the tenant is in possession of the rental unit; or</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(b) no later than one year after the tenant or former tenant ceased to be in possession of the rental unit.</span></li>
</ol>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Same</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(3) If the Board makes an order requiring payment under subsection (1) and for the termination of the tenancy, the Board shall set off against the amount required to be paid by the tenant the amount of any rent deposit or interest on a rent deposit that would be owing to the tenant on termination.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Compensation for failure to pay utility costs</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(4) The costs referred to in subsection (1) are reasonable out-of-pocket expenses that the landlord has incurred or will incur as </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">a result of a tenant’s or former tenant’s failure to pay utility costs that they were required to pay under the terms of the tenancy </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">agreement.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Application</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(5) This section applies with respect to,</span><br />
<ol style="list-style-type: none;">
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(a) a failure described in clause (1)(a),even if the failure occurred before the day section 20 of Schedule 4 to the </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Protecting </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Tenants and Strengthening Community Housing Act, 2020 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">comes into force; and</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(b) out-of-pocket expenses described in subsection (4), even if the expenses were incurred before that day.</span></li>
</ol>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Transition, court proceedings not affected</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(6) Despite subsection 168 (2), the enactment of this section by section 20 of Schedule 4 to the </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Protecting Tenants and Strengthening Community Housing Act, 2020 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">does not affect any court proceeding for an order for the payment of compensation for </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">a tenant’s or former tenant’s failure to pay utility costs </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">that is commenced before the day that section comes into force and has not been finally determined before that day.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">21 (1) Subsection 89 (1) of the Act is repealed and the following substituted:</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Application for compensation for damage</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(1) A landlord may apply to the Board for an order requiring a tenant or former tenant to pay reasonable costs that the landlord has incurred or will incur for the repair of or, where repairing is not reasonable, the replacement of damaged property if,</span><br />
<ol style="list-style-type: none;">
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(a) while the tenant or former tenant is or was in possession of the rental unit, the tenant or former tenant, another occupant of the rental unit or a person permitted in the residential complex by the tenant or former tenant wilfully or negligently causes or caused undue damage to the rental unit or the residential complex; and</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(b) in the case of a tenant or former tenant no longer in possession of the rental unit, the tenant or former tenant ceased to be in possession on or after the day subsection 21 (1) of Schedule 4 to the </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Protecting Tenants and Strengthening Community Housing Act, 2020 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">comes into force.</span></li>
</ol>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Application under subs. (1)</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(1.1) An application under subsection (1) may be made,</span><br />
<ol style="list-style-type: none;">
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(a) while the tenant is in possession of the rental unit; or</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(b) no later than one year after the tenant or former tenant ceased to be in possession of the rental unit.</span></li>
</ol>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">(2) </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Subsection 89 (2) of the Act is amended by striking out “required to be paid” and substituting “required to be paid by the tenant”</span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">.</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">(3) Section 89 of the Act is amended by adding the following subsections: </span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Application</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(3) This section applies with respect to,</span><br />
<ol style="list-style-type: none;">
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(a) damage described in clause (1) (a), even if the damage occurred before the day subsection 21 (1) of Schedule 4 to the </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Protecting Tenants and Strengthening Community Housing Act, 2020 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">comes into force; and</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(b) costs described in subsection (1),even if the costs were incurred before that day.</span></li>
</ol>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Transition, court proceedings not affected</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(4) Despite subsection 168(2), the re-enactment of subsection (1) by subsection 21(1) of Schedule 4 to the </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">ProtectingTenants and Strengthening Community Housing Act, 2020 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">does not affect any court proceeding for an order for the payment of compensation for damage to the rental unit or the residential complex that is commenced before the day that subsection comes into force and has not been finally determined before that day.</span></div>
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<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">27</span></div>
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<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">28</span></div>
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<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">22 </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Paragraph 2 of subsection 94.11 (1) of the Act is amended by striking out “A settlement mediated under section 194” at the beginning and substituting “A settlement agreed to under section 194”.</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">23 </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Subsection 135 (1.1) of the Act is amended by striking out “48.1, 52” and substituting “48.1, 49.1, 52”.</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">24 The Act is amended by adding the following section:</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Rent increase deemed not void</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">135.1 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(1) An increase in rent that would otherwise be void under subsection 116 (4) is deemed not to be void if the tenant has paid the increased rent in respect of each rental period for at least 12 consecutive months.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Non-application</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(2) Subsection(1)does not apply with respect to an increase in rent if the tenant has, within one year after the date the increase was first charged, made an application in which the validity of the rent increase is in issue.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Deemed compliance with s. 116</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(3) For greater certainty, if subsection (1) applies with respect to an increase in rent, section 116 is deemed to have been complied with.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Application of s. 136</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(4) For greater certainty, nothing in this section limits the application of section 136.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Transition</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(5) This section applies with respect to an increase in rent even if it was first charged before the day the </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Protecting Tenants and Strengthening Community Housing Act, 2020 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">receives Royal Assent, provided the validity of the rent increase was not finally determined by the Board before that day.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">25 (1) Subsections 137 (7) and (8) of the Act are repealed.</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">(2) </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Subsection 137 (12) of the Act is amended by striking out “(2), (6), (7), (8), (9) or (10)” in the portion before paragraph 1 and substituting “(2), (6), (9) or (10)”.</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">(3) Section 137 of the Act is amended by adding the following subsection:</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Transition, </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic; font-weight: 700;">Protecting Tenants and Strengthening Community Housing Act, 2020</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(19) This section and any related regulations, as they read immediately before the day the </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Protecting Tenants and Strengthening Community Housing Act, 2020 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">receives Royal Assent, continue to apply with respect to tenancy agreements that were entered into before that day.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">26 The Act is amended by adding the following section:</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Exclusion from rent</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">165.1 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(1) This section applies with respect to an amount that a landlord charges a tenant under the terms of a written agreement for any prescribed services and facilities or any prescribed privilege, accommodation or thing that the landlord provides for the tenant in respect of the occupancy of the site for a mobile home.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Not within the definition of “rent”</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(2) On and after the applicable prescribed date and if the prescribed circumstances apply,</span><br />
<ol style="list-style-type: none;">
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(a) the prescribed services and facilities or the prescribed privilege, accommodation or thing shall not be considered to be services and facilities or a privilege, accommodation or thing </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">that fall within the definition of “rent” in subsection 2 (1)</span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">; and</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(b) the amount charged by the landlord for the prescribed services and facilities or the prescribed privilege, accommodation or thing shall not be included in the rent charged to the tenant.</span></li>
</ol>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Reduction of rent</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(3) If the rent charged to a tenant immediately before the applicable date referred to in subsection (2) includes an amount to which that subsection applies, the landlord shall reduce the rent charged to the tenant in accordance with the prescribed rules.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Application</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(4) For greater certainty, this section applies with respect to an agreement referred to in subsection (1) whether the agreement is a tenancy agreement or any other agreement entered into between a landlord and a tenant.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Same</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(5) For greater certainty, this section applies with respect to an agreement referred to in subsection (1) even if the agreement was entered into before the day section 26 of Schedule 4 to the </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Protecting Tenants and Strengthening Community Housing Act, 2020 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">comes into force.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span></div>
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<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">27 Subsection 167 (1) of the Act is repealed and the following substituted:</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Increased capital expenditures</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(1) If, on an application made under section 126 on or after the day section 27 of Schedule 4 to the </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Protecting Tenants and Strengthening Community Housing Act, 2020 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">comes into force, the Board finds that a capital expenditure is for infrastructure work, the Board may, despite subsection 126 (11) but in accordance with the prescribed rules,</span><br />
<ol style="list-style-type: none;">
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(a) determine the number of years over which the rent increase justified by the capital expenditure may be taken; and</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(b) determine the percentage increase justified by the capital expenditure that may be taken in each year described in clause (a).</span></li>
</ol>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Same</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(1.1) For greater certainty, the number of years determined under clause (1) (a) may be less than, equal to or greater than three.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Same</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(1.2) For greater certainty, the percentage increase determined under clause (1) (b) may be less than, equal to or greater than 3 per cent in any given year and need not be the same for each year.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">28 The Act is amended by adding the following section:</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Application under s. 87, 88.1, 88.2 or 89</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">189.0.1 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(1) This section applies with respect to an application under subsection 87 (1) or (3), 88.1 (1), 88.2 (1) or 89 (1) if, at the time the application is made, the tenant or former tenant who is a party to the application is no longer in possession of the rental unit.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Notice from applicant</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(2) The applicant shall, within the time set out in the Rules, give the tenant or former tenant,</span><br />
<ol style="list-style-type: none;">
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(a) a copy of the application; and</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(b) a copy of any notice of hearing issued by the Board in respect of the application.</span></li>
</ol>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Certificate of service</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(3) The applicant shall, in the circumstances set out in the Rules, file with the Board a certificate of service on the tenant or former tenant in the form approved by the Board.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Application</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(4) If this section applies with respect to an application,<br />(a) paragraph 1 of subsection 188 (1) and section 189 do not apply with respect to the tenant or former tenant; and (b) clause(2)(b)appliesdespitethe</span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">StatutoryPowersProcedureAct</span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">29 Section 191 of the Act is amended by adding the following subsection:</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Same, tenant or former tenant no longer in possession</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(1.0.1) Despite subsection (1), a notice or document is sufficiently given to a tenant or former tenant who is no longer in possession of a rental unit,</span></div>
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<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(a) (b) (c) (d)</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">30 (1)</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span></div>
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<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">by handing it to the tenant or former tenant;<br />by sending it by mail to the address where the tenant or former tenant resides;<br />by handing it to an apparently adult person where the tenant or former tenant resides; or byanyothermeansallowedintheRules.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Subsection 194 (1) of the Act is repealed and the following substituted:</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span></div>
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<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Mediation or other dispute resolution process</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(1) The Board may attempt to settle through mediation or another dispute resolution process any matter that is the subject of </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">an application or agreed upon by the parties.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">(2) </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Subsection 194 (2) of the Act is amended by striking out “mediated </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">under this section</span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">” and substituting “agreed to </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">under this section</span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">”.</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">(3) </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Subsection 194 (3) of the Act is amended by striking out “</span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">that can be mediated under this section</span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">” and substituting “</span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">that can be agreed to under this section</span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">”.</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">(4) Subsection 194 (4) of the Act is repealed and the following substituted:</span></div>
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<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">29</span></div>
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<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">30</span><br />
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<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Settlement</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(4) If some or all of the issues with respect to an application are settled under this section, the Board shall dispose of the application in accordance with the Rules.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">(5) Subsection 194 (5) of the Act is amend</span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">ed by striking out “mediated”.</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">31 (1) Subsection 206 (3) of the Act is repealed and the following substituted:</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Restriction</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(3) In an order under subsection (1) issued on or after the day subsection 31 (1) of Schedule 4 to the </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Protecting Tenants and Strengthening Community Housing Act, 2020 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">comes into force, the Board shall not order that the tenancy be terminated.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Application under s. 78</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(3.1) In an order under subsection (1) issued on or after the day subsection 31 (1) of Schedule 4 to the </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Protecting Tenants and Strengthening Community Housing Act, 2020 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">comes into force, the Board may include a provision allowing a landlord to make an application under section 78 if the tenant fails to comply with one or more of the terms of the order.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">(2) Section 206 of the Act is amended by adding the following subsection:</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Request under subs. (4) or (5)</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(5.1) A landlord may file a request to reopen the application under subsection (4) or (5) even if the order includes a provision described in subsection (3.1).</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">32 The Act is amended by adding the following section: Production order</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">231.1 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(1) Aprovincialjudgeorjusticeofthepeacemayatanytimeissueaproductionorderintheprescribedformtoaperson, other than a person under investigation for an offence, requiring the person to,</span><br />
<ol style="list-style-type: none;">
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(a) produce documents or copies of documents, certified by affidavit to be true copies, or produce data; or</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(b) prepare a document based on documents or data already in existence and produce it.</span></li>
</ol>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Contents of order</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(2) A production order shall stipulate when, where and how the documents or data are to be produced and to whom they are to be produced.</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Grounds</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(3) A provincial judge or justice of the peace may make a production order if the provincial judge or justice is satisfied by information given under oath or affirmation that there are reasonable grounds to believe that,</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(a) anoffenceunderthisActhasbeenorisbeingcommitted;</span><br />
<ol start="2" style="list-style-type: none;">
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(b) the document or data will provide evidence respecting the offence or suspected offence; and</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(c) the person who is subject to the order has possession or control of the document or data.</span></li>
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<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Conditions</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(4) A production order may contain such conditions as the provincial judge or justice of the peace considers advisable.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Evidence</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(5) A copy of a document produced under this section, on proof by affidavit that it is a true copy, is admissible in evidence in any prosecution of a person for an offence under this Act and has the same probative force as the original document would have if it had been proved in the ordinary way.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">No return of copies</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(6) Copies of documents produced under this section are not required to be returned to the person who provided them.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Compliance required</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(7) A person to whom a production order is directed shall comply with the order according to its terms.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">33 </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Clause 233 (f) of the Act is amended by striking out “sections 48.1, 52, 54 and 55” at the end and substituting “section 48.1, 49.1, 52, 54 or 55”.</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">34 Section 234 of the Act is amended by adding the following clause:</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(t.1) fails to comply with a production order issued under section 231.1;</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">35 (1) </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Subsection 238 (1) of the Act is amended by striking out “$25,000” at the end of the subsection and substituting “$50,000”.</span></div>
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<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">(2) Subsection 238 (2) of the Act is </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">amended by striking out “$100,000” at the end of the subsection and substituting “$250,000”.</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">36 Section 239 of the Act is amended by adding the following subsection:</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Same</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(1.2) No proceeding shall be commenced respecting an offence under clause 234 (l) more than two years after the date on which the facts giving rise to the offence came to the attention of the Minister.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">37 Section 240 of the Act is amended by adding the following subsection:</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Printout of electronic version</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(5) Subsections (1) to (3) apply, with necessary modifications, to any printout of the electronic version of a certificate, statement, document, order or record referred to in those subsections that is stored or maintained by the Board in an electronic format, if the printout is certified as a true copy of the electronic version by the person who made the printout.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">38 (1) Paragraphs 45.3, 45.4, 46 and 47 of subsection 241 (1) of the Act are repealed. (2) Subsection 241 (1) of the Act is amended by adding the following paragraphs:</span><br />
<ol style="list-style-type: none;">
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">59.1 prescribing services and facilities and privileges, accommodations and things for the purposes of subsection 165.1 (1);</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">59.2 foreach of the prescribed services and facilities and prescribed privileges, accommodations and things, prescribing the applicable date and the circumstances governing the application of subsection 165.1 (2);</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">59.3 prescribing the rules governing the reduction of rent for the purposes of subsection 165.1 (3);</span></li>
</ol>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">(3) Paragraph 60 of subsection 241 (1) of the Act is repealed and the following substituted:</span><br />
<ol start="60">
<li style="font-family: TimesNewRomanPSMT; font-size: 10pt;"><span style="font-size: 10pt;">prescribing rules governing the determination of the number of years under clause167(1)(a);</span></li>
<li style="font-family: TimesNewRomanPSMT; font-size: 10pt;"><span style="font-size: 10pt;">prescribing rules governing the determination of the percentage increase under clause167(1)(b);</span></li>
</ol>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">61.1 prescribing services and things for the purposes of subsection 167 (2);</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">39 (1) Section 241.1 of the Act is amended by adding the following paragraph:</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">4. prescribing the form of a production order for the purposes of subsection 231.1(1).</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">(2) Section 241.1 of the Act is amended by adding the following subsection:</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br />Regulation under par. 2 ii of subs. (1)</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(2) A regulation made under subparagraph 2 ii of subsection (1) may, with respect to a prescribed class of tenancies,</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(a) prescribe different forms of tenancy agreement depending on whether the tenancy agreements for that class are entered into before a date specified in the regulation or are entered into on or after that date; and</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(b) provide that for tenancy agreements that are entered into during a transition period specified in the regulation, either one of the forms described in clause (a) may be used for the purposes of compliance with paragraph 1 of subsection 12.1 (1).</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">40 The Act is amended by adding the following section:</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Transition regulations, </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic; font-weight: 700;">Protecting Tenants and Strengthening Community Housing Act, 2020</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">241.3 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(1) The Lieutenant Governor in Council may make regulations governing transitional matters that, in the opinion of the Lieutenant Governor in Council, are necessary or advisable to deal with issues arising out of the amendments to this Act made by Schedule 4 to the </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Protecting Tenants and Strengthening Community Housing Act, 2020</span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">.</span><br />
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;"><br /></span>
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Same</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br /></span>
<span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(2) A regulation made under subsection (1),</span><br />
<ol style="list-style-type: none;">
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(a) may provide that, despite the coming into force of a provision of this Act, as enacted by Schedule 4 to the </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Protecting Tenants and Strengthening Community Housing Act, 2020</span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">, the provision does not take effect in all or part of the province until the date specified in the regulations;</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(b) may provide that a provision of this Act, as it reads immediately before the commencement date of its amendment, repeal or re-enactment by Schedule 4 to the </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Protecting Tenants and Strengthening Community Housing Act, 2020</span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">, continues to apply for a specified period of time and with necessary modifications, to specified things or in specified circumstances;</span></li>
<li><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">(c) may govern the application of provisions of this Act to proceedings before a court or the Board in which a claim is made relating to amendments to this Act made by Schedule 4 to the </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic;">Protecting Tenants and Strengthening Community Housing Act, 2020 </span><span style="font-family: "timesnewromanpsmt"; font-size: 10pt;">and which were commenced before the commencement date of the amendment.</span></li>
</ol>
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<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">Commencement</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;"><br />41 (1) Subject to subsection (2), this Schedule comes into force on the day the </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic; font-weight: 700;">Protecting Tenants and Strengthening </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-style: italic; font-weight: 700;">Community Housing Act, 2020 </span><span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">receives Royal Assent.</span><br />
<span style="font-family: "timesnewromanps"; font-size: 10pt; font-weight: 700;">(2) Subsection 3 (2), sections 9 to 13, 18 to 21, 26 to 29, 32 and 34 and subsections 38 (2) and (3) and 39 (1) come into force on a day to be named by proclamation of the Lieutenant Governor.</span></div>
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Michael K. E. Thielehttp://www.blogger.com/profile/10247495615982921581noreply@blogger.com7tag:blogger.com,1999:blog-6703393754400182307.post-53903768874797871392020-06-23T14:08:00.002-04:002020-06-23T14:24:53.741-04:00A ROOMMATE AS COMMERCIAL TENANT?<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="text-align: justify;">
<span style="font-size: large;"><b><i>RTA exempt. I am roommate. Now what?</i></b></span></div>
<span style="font-size: large;"></span><br />
<div style="text-align: justify;">
<b></b><i></i><br /></div>
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<span style="font-size: large;">I want to thank Mr. Maguire for emailing me and asking me to comment on <span style="background-color: transparent; color: #212529; display: inline; float: none; font-family: "open sans" , "myriad web" , "verdana" , sans-serif; font-size: 14px; font-style: normal; font-variant: normal; font-weight: 400; letter-spacing: normal; text-align: left; text-decoration: none; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px;"><a href="http://canlii.ca/t/hxgvv" target="_blank">Newman v. Glanville, 2019 ONSC 1040 (CanLII</a>)</span> . Being somewhat too kind, he suggested that I might have valuable insight into the "problems" caused by this decision and therefore asked that I comment. Being susceptible to flattery I will do so below but with the caveat that in relation to the issues of commercial tenancies law that I may be out of my depth. Nevertheless, I'm willing to comment because the decision in<i> Newman</i> speaks to the gaping legal hole that has to do with roommate relationships of a residential nature, which appear to be residential leases and/or residential tenancies, but which are excluded from the application of the <i><a href="https://www.canlii.org/en/on/laws/stat/so-2006-c-17/latest/so-2006-c-17.html?autocompleteStr=residen&autocompletePos=1" target="_blank">Residential Tenancies Act</a></i> due to the exclusions (usually found in section 5 RTA--and typically section 5(i) where the tenant shares a kitchen and/or bath with the landlord (though there are other exemptions too)).</span></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjVbyA92nHlkz8g2_SnAd1XrjpPXOLeDckUowj-m4WA2g5rmXGjjSkMsul-rmdtHrSrDcviE_vOQ_AJVBszIlTb5ba_k1DMIapY_oEddOIMDRk5bPgT3XyETDhQN1kXRcj2LaKoiZ7c7HJd/s1600/Apartment+Building.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><span style="font-size: large;"><img border="0" data-original-height="594" data-original-width="400" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjVbyA92nHlkz8g2_SnAd1XrjpPXOLeDckUowj-m4WA2g5rmXGjjSkMsul-rmdtHrSrDcviE_vOQ_AJVBszIlTb5ba_k1DMIapY_oEddOIMDRk5bPgT3XyETDhQN1kXRcj2LaKoiZ7c7HJd/s400/Apartment+Building.jpg" width="268" /></span></a></div>
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<b><i>THE ISSUE (BIG PICTURE</i>)</b></span></div>
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The Residential Tenancies Act captures and covers the vast majority of residential rental relationships where an owner rents a rental unit (house, apartment, room in rooming house) to a tenant in exchange for the payment of rent (money or otherwise). The Residential Tenancies Act has numerous provisions that are designed to stymie and void contractual terms and agreements that would allow a landlord to escape the application of the Residential Tenancies Act to the relationship between the owner (landlord) and renter (tenant). The reason that owners (landlords) sometimes try to avoid the application of the Residential Tenancies Act (RTA) is that the RTA provides a rather comprehensive code governing the relationship between landlords and tenants. The RTA equalizes the traditional power imbalance between landlords and tenants (whether it does that well enough or too much is outside the scope of this blog). The RTA dictates what happens when rent isn't paid, or paid late, and it creates a process for getting rent arrears paid and maintaining and continuing a tenancy while prohibiting a landlord from simply changing locks, putting the tenant on the street (at midnight or any other time) and from seizing the tenant's property (i.e. known as "distress" or "distraint" which is specifically abolished in the <a href="https://www.canlii.org/en/on/laws/stat/so-2006-c-17/latest/so-2006-c-17.html?autocompleteStr=residen&autocompletePos=1&searchUrlHash=AAAAAQAIZGlzdHJlc3MAAAAAAQ&offset=0" target="_blank">RTA-see section 40</a>). The RTA further regulates all of the important interactions between landlord and tenant and it sets out rules for repair, maintenance, entry, landlord's duty re quiet enjoyment, tenant's duties re cleanliness, termination for cause provisions, termination for not for cause, assignment, sublet, rules related to rent, (etc. etc.) and most importantly for all of these issues the RTA provides a process that must be followed for all of the issues it regulates. The RTA provides detailed Forms and through the Ontario Landlord and Tenant Board, Rules of Procedure, Guidelines, and procedural fairness and natural justice in resolving disputes. In sum, the totality of the RTA goes a long way to heavily regulating what residential landlords and tenants are permitted to agree to. That landlords and tenants may wish to agree to a term, clause, condition, that is contrary to the RTA does not matter. The RTA makes such agreements void and unenforceable.</span></div>
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<span style="font-size: large;">While some find the RTA to be heavy handed and too in favour of the landlord or the tenant (depending on one's perspective), the benefit is that with knowledge of the RTA a landlord or tenant can at least predictably know the outcome of the issues that the RTA regulates. For example, if a tenant does not pay the rent then a landlord knowledgeable in the RTA will know that the N4 (termination for non-payment of rent) process should be followed, that the tenant will be given opportunities to void, that the LTB may be applied to after 14 days, that a hearing will be scheduled and the tenant will typically receive a pay and stay order with 11 days to pay failing which the Order may be filed with the Sheriff for enforcement. The point I'm making is that the RTA through the processes it establishes provides at least a path that is predicable as to outcome.</span></div>
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<span style="font-size: large;">Compare the predictability of the RTA to a residential rental relationship that is not covered by the RTA. You need to go back a very long way in Ontario to get to a time before the Landlord and Tenant Act had a specific part for residential tenants--i.e. 1970 when Part IV of the Landlord and Tenant Act was passed. Before the code like provisions of the RTA tenants were subject to common law, the whims of landlords, and the power imbalance inherent in the owner versus renter relationship. Prospective tenants who needed a place to live were not in a position to make very great demands on their landlords. The reasons for Part IV of the Landlord and Tenant Act--from which you can easily and clearly trace the modern Residential Tenancies Act, remain as significant and important today as they were then. Housing security, security of tenure, and all of the things that stable housing means for human beings continues to inform the evolution of the RTA while of course balancing these important concerns with the rights of property owners and the need to ensure that property owners are encouraged to be landlords and make housing available for people.</span></div>
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<b><i><span style="font-size: large;">THE ROOMMATE</span></i></b></div>
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<span style="font-size: large;">What exactly is a "roommate"? It isn't a term of a fixed definition. For the purposes of this article the "roommate" I'm talking about is a non-RTA covered person (i.e. someone who doesn't have the protection and rights granted to tenants under the Residential Tenancies Act). The typical roommate I am talking about either rents a room from the owner who also resides in the property OR rents a bedroom from a person who is a residential tenant of the owner. The first roommate (shares with the "owner"), has no rights under the RTA. The second roommate (roommate of actual tenant) has some protections under the RTA but arguably those are derivative and arising from their occupation with the tenant in the tenant's household.</span></div>
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<span style="font-size: large;">The "roommate" exemption (vis a vis "owner"), is in section 5 (i) RTA and states as follows:</span></div>
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<span style="background-color: transparent; color: black; display: inline; float: none; font-family: "myriad web" , "verdana" , sans-serif; font-size: large; font-variant: normal; letter-spacing: 0px; line-height: 24px; text-align: left; text-decoration: none; text-indent: -24px; text-transform: none; white-space: normal; word-spacing: 0px;"><i>This Act does not apply with respect to, (i) living accommodation whose occupant or occupants are required to share a bathroom or kitchen facility with the owner, the owner’s spouse, child or parent or the spouse’s child or parent, and where the owner, spouse, child or parent lives in the building in which the living accommodation is located;</i></span></div>
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The "roommate" exemption (vis a vis "tenant), arises by definition in that a tenant can't be a landlord (by definition) and hence no landlord and tenant relationship that could be RTA covered can be formed between the actual tenant and a roommate who moves in (see section 2(a) RTA)</span></div>
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<b><i><span style="font-size: large;">SO WHAT'S THE PROBLEM?</span></i></b></div>
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A serious problem can arise when the relationship between the "owner" and "roommate" falls apart or when the relationship between "RTA tenant" and "roommate" falls apart. In either situation, there is no protection for the "roommate" under the RTA. Quite literally, if the "owner" or "RTA tenant" is upset at the "roommate" they can tap them on the shoulder in the middle of the night, rouse them from their sleep and require that they "get out now". Depending on the circumstances (and probably most of the time), getting kicked to the curb in the middle of the night with zero notice and no place to go is a shocking experience and one that you'd expect would be illegal. However, subject only to a potential claims for "damages", the roommate has no security of tenure; may be required to vacate immediately and without notice, and have no recourse to maintaining their occupancy for any period of time at all (i.e. there is no court application that lets them stay in the unit).</span></div>
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<span style="font-size: large;">The reality is that the RTA has no process for roommates. There are no forms, no application, no Orders, no sheriff, no "rights". The RTA simply doesn't apply.</span></div>
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<span style="font-size: large;">Some "owners" and landlords hold the view that the RTA exempt situation must be fantastic. With the RTA not applying the owner can make the rules and the roommate must simply do what the owner requires. Indeed, this is one possible outcome when the RTA does not apply. Another possible outcome is that the" roommate" refuses to leave, refuses to cooperate, and basically refuses to listen to any demands from the owner or RTA tenant. When this happens it can be rather shocking to discover that the RTA (and hence the Landlord and Tenant Board) has no path nor process for the owner nor the RTA covered tenant to force the "roommate" to leave. </span></div>
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<span style="font-size: large;">While the experience varies dramatically, it is not uncommon for police forces around the province to respond to owners or tenants' demands to remove roommates from a property with a refusal and direction to get an "Order". Certainly, there are exceptions and some police officers will indeed remove roommates, but often enough police officers will refuse the request if the roommate is calm, there is no risk of violence, the "peace is being kept", and the roommate seems sensible, calm, and clearly lives in the property. If this happens what do you do as the owner? What do you do as the RTA covered tenant who has a roommate who won't leave? Do you dare take the matter into your own hands and try to physically remove the "roommate" yourself? Do you dare risk violence? If you do, are you prepared to risk being arrested, injured, causing injury, etc.?</span></div>
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<b><span style="font-size: large;">SOLVING THE PROBLEM</span></b></div>
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When a roommate refuses to move out, the police won't help, and you're not willing to "self help" the roommate out the door then the approach is typically to apply to the Court for a "writ of possession". The roommate is a "trespasser" and having been asked to leave is required to vacate the premises. If the roommate has paid "rent" or has prepaid rent they can ask for a refund and if there are other issues (damage, theft, etc.) then that too can be subject to a claim based, normally, in contract. I suppose the door is also open to tort claims going either way between owner and roommate and RTA tenant and roommate.</span></div>
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<span style="font-size: large;">"Roommates" while they don't recourse to maintain their occupancy of the property they do successfully bring cases against the "owner" or "RTA tenant" for damages arising from the breakdown and end of the rooming relationship. Owners and RTA tenants have been found liable for kicking out roommates without notice and short notice. They have been required to cover expenses associated with the wrongful and short notice removal from the property. They have been required to cover damages for loss of property or damage to the roommate's personal property. The law has clearly developed that while the relationship between owner and roommate or RTA tenant and roommate is not covered by the RTA that does not allow the owner to simply do whatever they want without any legal consequence. This is why, when you read all of the legal texts and cases dealing with the breakdown of the owner/roommate relationship that the word "reasonableness" appears repeatedly to describe the obligations and behaviour of owner and roommate.</span></div>
<a href="https://www.canlii.org/en/on/onsc/doc/2019/2019onsc1040/2019onsc1040.html" target="_blank"></a><span style="font-size: large;"></span><br />
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<b><i><a href="https://www.canlii.org/en/on/onsc/doc/2019/2019onsc1040/2019onsc1040.html" target="_blank"><span style="font-size: large;">NEWMAN v. GLANVILLE</span></a></i></b></div>
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<span style="font-size: large;">When Mr. Maguire wrote to me, he stated that legal practitioners were interpreting the <i>Newman</i> case to mean that every "owner/roommate" relationship and/or every "RTA tenant/roommate" relationship, where it is exempt from the Residential Tenancies Act it is then covered by the <a href="https://www.canlii.org/en/on/laws/stat/rso-1990-c-l7/latest/rso-1990-c-l7.html?autocompleteStr=commerc&autocompletePos=1" target="_blank">Commercial Tenancies Act</a>. One can forgive this conclusion (and frankly think that it must be true), given paragraph 7 of the Newman case which states:</span></div>
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<span style="background-color: transparent; color: black; font-size: 9.33px; font-stretch: normal; font-variant: normal; font-weight: 400; letter-spacing: normal; line-height: normal; text-align: justify; text-decoration: none; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px;"></span><span style="background-color: transparent; color: black; display: inline; float: none; font-family: "times new roman" , "serif"; font-size: 16px; font-variant: normal; font-weight: 400; letter-spacing: normal; text-align: justify; text-decoration: none; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px;">Mr. Newman initially sought to evict Mr. Glanville from the home by
applying to the Landlord and Tenant Board under the </span><a class="reflex2-link" concatenated-id="811-current-1" href="https://www.canlii.org/en/on/laws/stat/so-2006-c-17/latest/so-2006-c-17.html" style="color: #027abb; text-decoration: none;">Residential Tenancies
Act 2006</a><span style="background-color: transparent; color: black; display: inline; float: none; font-family: "times new roman" , "serif"; font-size: 16px; font-variant: normal; font-weight: 400; letter-spacing: normal; text-align: justify; text-decoration: none; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px;">. The board declined jurisdiction to hear the application citing
section 5(i) of the </span>Residential Tenancies Act<span style="background-color: transparent; color: black; display: inline; float: none; font-family: "times new roman" , "serif"; font-size: 16px; font-variant: normal; font-weight: 400; letter-spacing: normal; text-align: justify; text-decoration: none; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px;"> which excludes
jurisdiction in circumstances where the landlord and tenant share either a
bathroom or a kitchen. Mr. Newman and Mr. Glanville share both. <span style="background-color: yellow;">In those
circumstances, the </span></span><span style="background-color: yellow;"><a class="reflex2-link" concatenated-id="257-current-1" href="https://www.canlii.org/en/on/laws/stat/rso-1990-c-l7/latest/rso-1990-c-l7.html" style="color: #027abb; text-decoration: none;">Commercial Tenancies Act</a><span style="color: black; display: inline; float: none; font-family: "times new roman" , "serif"; font-size: 16px; font-variant: normal; font-weight: 400; letter-spacing: normal; text-align: justify; text-decoration: none; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px;"> applies rather than the </span>Residential
Tenancies Act</span><span style="background-color: white;"> (emphasis added)</span><span style="font-size: large;"><span style="background-color: white;"><i>.</i></span></span></div>
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That the Commercial Tenancies Act (CTA) is determined to apply when the RTA doesn't, and the relationship is owner/roommate, is leading some to conclude that the owner has the right of distress over the roommate's personal property and that this relationship (and what everyone must do) is covered by the CTA. Distress (or distraint) simply put is the landlord seizing and sometimes selling a tenant's property to satisfy rent arrears or other obligations under the lease.</span></div>
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<span style="font-size: large;">When I heard about "distress" being applied to get rent arrears (from roommates) using the CTA I wondered if the CTA wasn't being misused. "Distress", as I recall, can't be combined with excluding a tenant from the property in a commercial context. As I recall, it is one or the other--but not both. </span></div>
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<span style="font-size: large;">Why then are people grasping at parts of the CTA--or at least the parts that seem useful? It seems to me that the CTA is attractive because the exemption from the RTA (and the useful processes it supplies) leaves a vacuum of how to resolve the issues between owners/tenants and roommates.</span></div>
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<i><span style="font-size: large;"><b>Newman: limited valu</b>e</span></i></div>
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<span style="font-size: large;">Having reviewed Newman it seems to me that it has limited value. As an undefended application, where the Court did not have the benefit of counsel (for either side) presenting and arguing the law it seems to me that this case solves the problem in this particular case but the precedent value of the case for broad application is low. As far as I can see the case has not been followed (it has no treatment) and therefore it does not seem to be establishing the general proposition that when the relationship is exempted from the RTA that the CTA applies.</span></div>
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<i><b><span style="font-size: large;">CAN THE CTA apply?</span></b></i></div>
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<span style="font-size: large;">In my opinion it is highly unlikely that the CTA will apply in the circumstances where the RTA is exempted due to the section 5(i) exemption or the definitional exemption when the RTA tenant rents out a room to a roommate. While the Honourable Justice does conclude that the CTA applies if the RTA doesn't, there is no explanation in the decision of why this would or should be the case. </span></div>
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<span style="font-size: large;">Against that proposition, I'll submit that the legal relationship described in the Newman case is that of licensor and licensee. For a landlord and tenant relationship to exist, or for one to come into existence, there are fundamental requirements of property law that must be met to create that relationship. Borrowing one specific sentence, from the case cited below, is instructive:<i> </i></span></div>
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<span style="font-size: large;"><i>An agreement which confers exclusive possession of the premises as against all the world, including the owner, <u>is a lease</u>, while if it merely confers a privilege to occupy under the owner, it is a <u>licence</u>.</i> The case further states that <i>"no estate in land passes to a licensee and this, on the authorities, is the principle distinguishing trait between the two relationships".</i> </span></div>
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<span style="font-size: large;">A landlord and tenant relationship is recognized as much more than a contract. It is a characterized by the conveyance of an estate in land.</span></div>
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<span style="font-size: large;">It seems to me that in <i>Newman</i>, where the owner shares the house with the roommate, where they literally live in the house together, such that the roommate's hygiene, alcohol consumption, and use of utilities informs the relationship breakdown, that it is impossible to find a conferring of "exclusive possession of the premises as against all the world". </span></div>
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<span style="font-size: large;">The case from which I borrowed the sentence is <a href="https://www.canlii.org/en/on/onca/doc/1959/1959canlii125/1959canlii125.html?autocompleteStr=oil%20halpert&autocompletePos=1" target="_blank">B.A. Oil Co. v. Halper</a>t, an Ontario Court of Appeal decision (leave to SCC denied). This decision is instructive as it explains the nature of a landlord and tenant relationship as well as a licensor and licensee relationship and the tests to be applied in determining the difference. In <i>Halpert</i> the Court states that the intention of the parties must be ascertained.<i> Newman,</i> makes clear that there was no written lease and that the two parties were friends who shared the house for years. Given this description (see para 1, <i>Newman</i>) I can't imagine that the facts if inquired upon would support the proposition that Mr. Newman intended to<i> confer exclusive possession of the premises as against all the world</i> to Mr. Glanville. In fact, it seems inherent in the sharing nature of the space that there is an explicit intention to "not" grant exclusive possession to the roommate.</span></div>
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<span style="font-size: large;">As you think about it further, you might also realize that if indeed one could conclude an intention to create an "exclusive possession" in the roommate (so as to give rise to a Commercial Lease), then the Commercial Tenancies Act would be displaced by the Residential Tenancies Act as section 5(i) could not apply (because there would be no sharing of kitchen and/or bath).</span></div>
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<b><i><span style="font-size: large;">CONCLUSION</span></i></b></div>
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<span style="font-size: large;">Relying on <i>Halpert</i>, as well as Residential Tenancies in Ontario (3rd Edition), LexisNexis Canada Inc. 2015 by Jack Fleming (see section 4), <a href="https://www.canlii.org/en/on/onca/doc/2019/2019onca423/2019onca423.html?searchUrlHash=AAAAAAAAAAEAFFJTTyAxOTkwLCBjIEwuNywgcyAzAAAAAQAQLzI1Ny1jdXJyZW50LTEjMwE&resultIndex=1" target="_blank">V Hazelton Limited v. Perfect Smile Dental Inc., 2019 ONCA 423 (CanLII)</a> (specifically para 27 Nature of a Commercial Lease), it seems highly unlikely to me that the law supports the proposition that when a particular roommate relationship is RTA exempt as per section 5 that the Commercial Tenancies Act therefore applies. In fact, it seems far more likely to me that in the vast majority of owner/roommate relationships or RTA tenant/roommate relationships that I've described that the legal right of the roommate is best characterized as a licence. Because a licence does not create an estate or interest in the land there is no right to occupy the property nor to compel the owner to allow the roommate to remain in the property. The licence, once revoked for any reason, makes the roommate a trespasser if the roommate refuses to leave the property.</span></div>
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<span style="font-size: large;">Of course, if the licence is revoked arbitrarily or unreasonably, then the consequence of that revocation can result in a legal claim being brought against the owner or RTA covered roommate. We see these cases already and damages are awarded against owners when they revoke a licence arbitrarily or unreasonably. The analysis is in terms of contract/breach of contract, which is an easy and readily understood manner of determining entitlement to damages.</span></div>
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<b><i><span style="font-size: large;">WHAT WAS NEWMAN TO DO?</span></i></b></div>
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<span style="font-size: large;">After all of this what was Newman to do? I do think he proceeded correctly in applying to the Court for a Writ of Possession. Practically speaking, if a tenant won't leave, the police refuse to do anything, and self-help raises unreasonable risks, then the only thing one can do is apply to the Court for a Writ of Possession. However, in doing so, the legal underpinning of the argument for the Writ of Possession (on the facts in Newman) is not the Commercial Tenancies Act because there isn't, in law, a commercial tenancy in existence.</span></div>
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<span style="font-size: large;">Michael K. E. Thiele</span></div>
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<span style="font-size: large;">www.ottawalawyers.com</span></div>
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Michael K. E. Thielehttp://www.blogger.com/profile/10247495615982921581noreply@blogger.com4tag:blogger.com,1999:blog-6703393754400182307.post-36548237548074318682020-06-19T12:07:00.001-04:002020-06-19T21:43:33.330-04:00University Courses are now Online: Can I terminate my lease?<div dir="ltr" style="text-align: left;" trbidi="on">
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<b><i><span style="font-size: large;">CLASSES ARE ONLINE: Can we cancel our lease?</span></i></b></div>
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<span style="font-size: large;">I've been getting questions from university and college students, and some from landlords, asking if residential leases are still valid (or voidable) if students no longer want the house/apartment because they will stay home (with parents presumably) to take classes online. Does the fact of fall classes (at most colleges and universities in Ontario) being online void residential leases? Or does this fact allow students to cancel a lease?</span></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgG7glc5GYtyD5GbTgdwzHE2jiwM7qFiAc8AU_iFT8IuE2ESL7vVKy7FopwmFsQUOWJaMqnGv9Ep2tbSAsYx8hsHXZck9veGRT7AGxU4pEcPz2dHRYTbFTIZeIAu0K_kjvSP7ZWHWoH7_zc/s1600/Contract+Lease.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><span style="font-size: large;"><img border="0" data-original-height="1068" data-original-width="1600" height="213" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgG7glc5GYtyD5GbTgdwzHE2jiwM7qFiAc8AU_iFT8IuE2ESL7vVKy7FopwmFsQUOWJaMqnGv9Ep2tbSAsYx8hsHXZck9veGRT7AGxU4pEcPz2dHRYTbFTIZeIAu0K_kjvSP7ZWHWoH7_zc/s320/Contract+Lease.jpg" width="320" /></span></a></div>
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<span style="font-size: large;">The typical scenario is of students who rented a house in mid-winter to early in the new year of 2020 for this coming September. Some started their lease already in May/June but only intend to move into the property in late August or early September and others still have an upcoming start date in the next month or two. The renting, moving, and occupying of "student houses" follows a fairly typical timeline, is ritualistic in nature, and has been so for as long as I can remember. When house hunting, students try to rent as close to school as possible so that getting to class will be convenient (and fast) while also living in a student ghetto or area that serves the university/college crowd. A significant part of choosing where to live is all about the social aspect of student life. So it is with great surprise and profound discouragement that COVID (indirectly) has utterly disrupted the traditional return of students. Students around the province (indeed the country) are learning that their fall semester (in most cases) will be entirely online and that they don't need to be anywhere near campus. </span></div>
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<span style="font-size: large;">Online classes can be taken "anywhere with an internet connection" and some students are thinking about saving the rent money by not moving into rented accommodation near the University/College campus. Of course, another factor is concern about catching COVID by going to school or living with roommates from all over the province or world. It might just be a risky thing to do (going to school) versus living in the relative isolation of "home". Of course, not physically moving to school and staying "home" has a dramatic impact on student life and the personal freedom that comes with living away. Most of the students I've spoken with raise this issue as the biggest driver for still moving from home to school. This argument is then augmented by the fact that their institutions are indicating an intention of getting "back to normal" by the end of 2020 which isn't long after school starts. Hence, some of the questions I've gotten is whether students have a legal basis to delay the lease (like deferring enrolment) and still keep the rental unit available for themselves when school goes "back to normal". The short answer to that question is "no". A further consideration seems to be that if a rental unit (especially coveted units in good areas) is given up then there is no guarantee that it will be available for rent when school goes "back to normal". </span></div>
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<span style="font-size: large;">So the above is the set up for the issue that is concerning tenants and landlords and it is the topic of this article. My response to these concerns has been rather consistent and is related below.</span></div>
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<b><i><span style="font-size: large;">SIGNED LEASE</span></i></b></div>
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<span style="font-size: large;">If there is a signed lease then there is an obligation for the tenants to take possession, occupy and pay rent. They don't need to physically move in (if they wish to stay home or wherever they are when not at school) but the obligation to pay rent and "take possession" in the sense of controlling the rental unit is required by the lease. The fact of COVID does not create an exception to performing the lease. The fact that schools have moved most classes "online" does not create an exemption to the lease nor does it relieve a student (or their parent guarantors) from paying rent. Having been asked how to "avoid" a lease I confess that I don't see an argument that would work to void the lease because of COVID or the changed content delivery plans of schools. Thinking about this I can see how someone might want to argue that the leases are "frustrated" and that the "frustrated contracts act" applies to void the lease so that both landlords and tenants go back to their original positions prior to the execution of the lease. The application of these principles would require a return of deposits and voiding of the contract. I've also heard some wanting to argue a <i>force majeure</i> [act of God] to void the residential lease. Those arguments being identified, I wonder if perhaps someone will be successful with them. However, until I read a successful decision of the LTB or Superior Court voiding residential leases for COVID or "classes online" reasons I don't see <u>any</u> chance of tenants getting out of their leases for these reasons.</span></div>
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<b><i><span style="font-size: large;">NORMAL RTA rights</span></i></b></div>
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<span style="font-size: large;">Because I think tenants are bound to their leases (notwithstanding COVID and classes going online) any recourse to ending their leases needs to come from the standard RTA provisions. In this regard, tenants can exercise "sublet" and "assignment" rights (start reading about these at s<a href="https://www.canlii.org/en/on/laws/stat/so-2006-c-17/latest/so-2006-c-17.html?autocompleteStr=resident&autocompletePos=1#sec95subsec1" target="_blank">ection 95 of the Residential Tenancies Act</a>) . Tenants (students) who do not want to start their leases or who want out of them can seek to sublet their units to other persons if they wish to return to the unit at a future date. </span><br />
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<span style="font-size: large;">A "sublet" would make sense for the current term and then return to the unit next term when classes are expected to be in person again. The issues with a sublet, however, will be finding a person to take over for a short while and whether you can trust that person to pay rent and not trash the place during the sublet. Because a tenant remains liable to the landlord, during the course of a sublet, for rent and damage to the rental unit even if it is caused by the sub-letter, it is critically important to choose your sub-letter well. You should never sublet the unit to just anyone. Note also, that a sublet is only legal if the landlord consents to the unit being sublet. If the landlord unreasonably refuses to give consent this can be grounds to terminate the tenancy or to apply for an order compelling the landlord to give consent.</span></div>
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<span style="font-size: large;">The next option for tenants is to seek to assign the rental unit. An assignment is different from a sublet in that the existing tenants never return to the rental unit. The existing tenants cease being responsible for anything related to the rental unit as of the date of the assignment of the lease (they remain responsible for everything prior to the assignment). This is a tricky process and the sections of the RTA (see link above) should be read closely. A tenant can ask for a "general" right to assign or a "specific" assignment. A landlord must respond promptly and properly, failing which the tenants may acquire termination rights. Hence it is very important to understand the process as it is full of technicalities and unexpected outcomes if one doesn't know the rules. For many tenants using this process leads to an unexpected right to serve an N9 to terminate the tenancy in short order.</span></div>
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<span style="font-size: large;">Absent a successful assignment or sublet the tenants remain liable under the lease if it isn't otherwise terminated. Given the work in finding suitable sub-letters (and the risk that goes with them) or assignees, and perhaps the impossibility of finding such persons, is there anything else that can be done to get out of a lease? In short, the RTA says "no". Unless the tenancy is otherwise validly terminated the tenants' obligations continue.</span></div>
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<span style="font-size: large;">For those of you reading this very closely, and looking for loopholes, you might have twigged on "unless the tenancy is otherwise validly terminated ..". That sounds good--how might that happen? </span><br />
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<span style="font-size: large;">In this regard we get into how the <i>Residential Tenancies Ac</i>t works in practice versus how it is intended to work in theory. The RTA was not drafted with the intent to provide loopholes and backdoor escapes to lawful agreements for improper reasons. That being said, these backdoors and loopholes do exist and if a landlord is not tuned into the strategy a tenancy may be terminated inadvertently by a landlord in fulfillment of a tenant's objective. Further, there are technical requirements (especially surrounding the signing and use of the new Ontario Standard Form lease) that create options to terminate and avoid a lease that is not compliant with the standard form lease provisions (see section 12.1 and 47.0.1 RTA). </span><br />
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<span style="font-size: large;">Arguably (and it does work), if a tenant fails to pay the rent and a landlord serves an N4 (Notice of Termination for Non-Payment of Rent) then the tenant (if they follow the wording of the form very closely) can escape a fixed term lease by relying on the N4 form. Basically, this strategy is to "get evicted". While that sounds horrible it turns out that the repercussions of an eviction are basically "zero". "Privacy law" hides the fact of the eviction and if the rent arrears are carefully paid after the tenancy is terminated it is highly improbable that anything even ever shows up on a credit report.</span><br />
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<span style="font-size: large;">Landlords need to think about serving any kind of "termination" notice if they believe the tenant's behaviour or non-payment is intended to get the landlord to serve a termination notice. For inexperienced landlords a phone call to the Landlord and Tenant Board will typically result in advice to serve an N4 if the tenant has not paid the rent. As soon as the landlord does that the tenant is given a way to terminate the lease even if it is a fixed term. The law is fairly clear now that the rent obligation stops with the N4 even if there is a longer term tenancy. The alternative option to serving an N4 is filing an L9 (without serving an N4). An L9 does not terminate the tenancy and is the equivalent of suing for the rent at the LTB. The risk of proceeding with an L9 is that you can never evict for the arrears covered by the Order obtained on the L9 application. However, if the rent was being held back as a tactic/strategy to get the tenancy terminated (because the tenants were hoping for an N4) then serving the L9 normally results in rent being paid immediately (because the strategy failed).</span></div>
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<b><i><span style="font-size: large;">SUMMARY</span></i></b></div>
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<span style="font-size: large;">My legal opinion is that COVID and the fact of Universities and Colleges putting classes online for the fall semester is not a legal basis to void or escape a validly signed and legal residential lease. I don't see any real chance of the lease being frustrated and its doubtful that tenants will escape from the responsibilities that normally flow from the landlord and tenant relationship created by the lease. Of course, the usual rights under the RTA continue (sublet & assignment) and the RTA can be used to terminate the lease in the usual course.</span></div>
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<span style="font-size: large;"><b><i>ONE LAST OPTION</i></b></span><br />
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<span style="font-size: large;">If none of the above is helpful or interesting to tenants is there anything else at all? Well, you (tenants) could just abandon the rental unit and very clearly and purposely put the landlord back in possession of the rental unit. Return the key and have written confirmation to and from the landlord that you have abandoned the unit and/or are not taking possession of it. Don't pay the rent. Create arrears and allow them to accumulate. The RTA requires (as does the law generally) that the landlord mitigate its losses. When you return possession to the landlord and hand the keys back (and you have proof of doing that) you trigger the duty to mitigate (which for a landlord means he must re-rent the unit to new tenants). The landlord must mitigate and must seek to re-rent the unit as soon as possible. Rent should not be paid during this time as the landlord has nothing to mitigate if rent is being paid. The landlord needs to actively market the unit and seek new tenants. Keep track of the landlord's efforts to find new tenants because at some point the landlord will be required to prove that they diligently sought new tenants and that they did in fact actively market the unit.</span></div>
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<span style="font-size: large;">If the landlord successfully mitigates, in a reasonable amount of time, then the original tenants are typically liable for the rent for the time it took the landlord to re-rent the unit. Normally, a "reasonable" period of time for a landlord to mitigate and re-rent a unit is 60 days. After 60 days a court will begin to question how hard a landlord is trying to mitigate and whether active steps are actually being taken to find new tenants. If a Court determines that a landlord did not take reasonable mitigation steps then the landlord can be denied the rent arrears after a certain period (normally after 60 days). Therefore, if you are a landlord and the tenant does return possession it is critical to maintain a record of all mitigation activity. You need to actively maintain a record of all advertising, take pictures of the "For rent" signs, use an agent, and do what you normally do to re-rent the unit. Simply sitting back and expecting the tenant to pay rent because there is a lease won't work. Delays in marketing, upgrades, raising the rent, or keeping the unit off of the market to do repairs will result in reduced rent arrears or an outright denial to damages altogether.</span><br />
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<span style="font-size: large;">Michael K. E. Thiele</span></div>
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<span style="font-size: large;">www.ottawalawyers.com </span></div>
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Michael K. E. Thielehttp://www.blogger.com/profile/10247495615982921581noreply@blogger.com0tag:blogger.com,1999:blog-6703393754400182307.post-54905617318720951212020-05-05T11:01:00.001-04:002020-05-05T11:26:23.263-04:00CAN A LANDLORD CHARGE LATE FEES in ONTARIO?<div dir="ltr" style="text-align: left;" trbidi="on">
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<b><span style="font-size: large;">When the Rent is late what penalties can a landlord require a tenant to pay?</span></b></div>
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<span style="font-size: large;">Covid 19 and the pandemic has left a lot of residential tenants a bit short or unable to pay the monthly rent when it became due. For many this is a very unusual situation to be in because they "always" pay the rent and being behind on such a basic obligation is very worrying. What can happen?</span></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhKA0tABKjxif1VqbmRKE46KfOZO6KmGqCg0imMvuZD5gS-ajqNcHxT5LMAfYoyFGueV2-ljhRhYfkJDyQ_wMJ0lI0pESttjlDPFHvqEROthV3Iz76yeDcxBfTa96Jtz369ozpFeuZc-w7O/s1600/unnamed.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em; text-align: justify;"><img border="0" data-original-height="512" data-original-width="509" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhKA0tABKjxif1VqbmRKE46KfOZO6KmGqCg0imMvuZD5gS-ajqNcHxT5LMAfYoyFGueV2-ljhRhYfkJDyQ_wMJ0lI0pESttjlDPFHvqEROthV3Iz76yeDcxBfTa96Jtz369ozpFeuZc-w7O/s200/unnamed.png" width="198" /></a><span style="font-size: large;"></span><br />
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<span style="font-size: large;">In other articles in this blog I've written about the rather lengthy process to terminate a tenancy for non-payment of rent. The law does not make it easy to evict a tenant and there is a philosophical underpinning in the law that seeks to ensure a security of tenure for tenants. Therefore, for most tenants, being temporarily unable to pay rent is not going to lead to eviction because the law has built into it numerous opportunities, delays, and discretion that gives tenants a chance to pay rent arrears and maintain their home. Uniquely, for this Covid and pandemic period, the Ontario government through the Superior Court of Justice and the Ontario Landlord and Tenant Board has made it <u>impossible</u> to get an eviction Order for non-payment of rent and further has made it <u>impossible</u> for landlords to direct the Sheriff to enforce an eviction Order for non-payment rent without getting specific and special permission from the Court.</span></div>
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<span style="font-size: large;">While tenancies are being protected and landlords are being forced to bear the cost of non-paying tenants (without any legal recourse against tenants during the state of emergency) tenants will eventually have to pay their rent and they will have to make up and pay the rent arrears that they have accumulated. Whether the arrears will be so large as to be impossible to pay is still left to be seen as we don't know what the end of this pandemic looks like. </span><br />
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<span style="font-size: large;">The question that this article answers is whether a landlord may legally charge a penalty, interest, late fee, or some other charge to compensate them for not receiving the rent on time? The question is posed in the context of virtually every other commercial transaction where the failure to pay in accordance with a contract attracts some kind of penalty, interest, or other consequence.</span></div>
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<span style="font-size: large;">The short and simple answer is that under the <i>Residential Tenancies Act</i> (RTA), a landlord is prohibited from charging a late fee, interest, or any other kind of charge or penalty for the late payment or late partial payment of rent. Additional charges for failing to pay the rent "on time" are very clearly illegal.</span><br />
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<span style="font-size: large;">It does not matter what clauses are contained in the lease and what terms a landlord has inserted or negotiated to include in a lease. All such penalty clauses are illegal and void. It also doesn't matter if a tenant agrees to specific penalty clauses, has signed such clauses, acknowledged such clauses or even has paid such penalties in the past. The <i>Residential Tenancies Act</i> does not allow a tenant and landlord to agree to late payment penalties and any such agreements (even if freely made) are illegal and void (see section 4 RTA for the "voiding" provision).</span></div>
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<span style="font-size: large;">So where exactly does it say that a landlord can not charge a tenant a late fee, penalty, bonus, interest, or other such charge for paying the rent late? This question is actually answered in a couple of different ways under the <i>Residential Tenancies Act</i>. The first spot where the RTA prohibits these kinds of charges is in <a href="https://www.canlii.org/en/on/laws/stat/so-2006-c-17/latest/so-2006-c-17.html?autocompleteStr=resi&autocompletePos=1&searchUrlHash=AAAAAQAIaW50ZXJlc3QAAAAAAQ&offset=91983#sec134subsec1" target="_blank"><span style="color: red;">section 134 RTA</span></a>. This section is titled "<i><b>Additional Charges Prohibited</b></i>" and it describes charges like a "fee, premium, commission, bonus, penalty, key deposit or other like amount of money whether or not the money is refundable". Section 134 (1)(b) continues (with further clarification of the prohibition by stating that a landlord can not require or attempt to require a tenant to pay "any consideration" for goods and services as a condition for granting the tenancy or <u>continuing to permit occupancy</u> of a rental unit if that consideration is in addition to the rent the tenant is lawfully required to pay to the landlord. </span></div>
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<span style="font-size: large;">The point of section 134 RTA (as it is broadly worded) is that is designed to capture and prevent any kind of sneaky or indirect way of charging a tenant more than the lawful rent. This section throws up a massive roadblock to a landlord who is seeking to levy charges or create a basis for charges that would exceed the lawful rent.</span></div>
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<span style="font-size: large;">Another way that the RTA clearly prohibits interest, late fees, penalties, (and like charges) for the late payment of rent or the late partial payment of rent is in <a href="https://www.canlii.org/en/on/laws/stat/so-2006-c-17/latest/so-2006-c-17.html?autocompleteStr=resi&autocompletePos=1&searchUrlHash=AAAAAQAIaW50ZXJlc3QAAAAAAQ&offset=91983#sec111subsec1" target="_blank"><span style="color: red;">section 111 RTA</span></a>. This section states that the landlord shall not charge a rent that is greater than the lawful rent that the landlord is permitted to charge. The "lawful rent" is the amount first charged to the tenant (section 113) and includes lawful annual rent increases. The "lawful rent" does not permit there to be late fees, penalties, interest, or other such charges.</span><br />
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<span style="font-size: large;">In simple terms, the RTA in section 111 is stating that a landlord may not charge a tenant more than the lawful rent--even if that rent is late or partially late.</span></div>
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<span style="font-size: large;">A tenant does not have to have a "good excuse" for late payment or some other explanation that the landlord finds acceptable as an explanation for a late payment. A tenant does not have to get the landlord's "okay" or forgiveness for the late or partial payment of rent. A landlord may exercise its rights to serve a Notice of Termination for Non-Payment of Rent (with its numerous protections for tenants built in), but a landlord may not coerce, manipulate, threaten, charge, or otherwise take retributive action against a tenant for late or non-payment of rent. A landlord can not punish a tenant or take away "rights" under the lease just because a tenant has failed to pay rent on time.</span></div>
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<span style="font-size: large;">Are there any exceptions to charges for late payment of rent? There are a very few. If the rent is late because the rent cheque went NSF a landlord is permitted to charge a tenant the actual fee charged to the landlord by its Bank for the NSF cheque plus a maximum amount of $20 as the landlord's fee for dealing with the NSF cheque. Aside from NSF charges, a tenant could also be required to pay the "costs" of an application to the Ontario Landlord and Tenant Board if the landlord serves a Notice of Termination for Non-Payment of Rent and then, when permitted, applies to the LTB for an eviction Order. That fee can be $175 to $190 dollars and is typically awarded to the landlord if the landlord wins the application. Note however that the LTB fees are a reimbursement of money actually spent by the landlord and not a "fee" that the landlord simply gets to charge a tenant for starting a termination process with an N4 form.</span></div>
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<div style="text-align: justify;">
<span style="font-size: large;">Michael K. E. Thiele</span></div>
<div style="text-align: justify;">
<span style="font-size: large;">www.ottawalawyers.com</span></div>
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<span style="font-size: large;">Ottawa, Ontario</span></div>
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Michael K. E. Thielehttp://www.blogger.com/profile/10247495615982921581noreply@blogger.com3tag:blogger.com,1999:blog-6703393754400182307.post-20450182528478827042020-05-04T14:33:00.001-04:002020-05-07T12:47:12.060-04:00Breathing asbestos and dangerous substances in an apartment<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-size: large;"><b><i>WHAT ARE A TENANT'S RIGHTS?</i></b></span></div>
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<span style="font-size: large;">The topic of this blog article comes up due to several recent cases I've worked on and a recent newspaper article about an Ottawa tenant who fears having been exposed to asbestos fibres in her apartment while the landlord was carrying out a repair. My cases involved asbestos, silica, and electromagnetic fields.</span></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj9aWILxAfQWLwbtX79GtdccFYoJOhu2z0bllKggTJzfsHdC805SZKGCb96QrDUjSWZGf8lXEaZD7sBaQojll0vTYg-ZsETNyYhz82v_l9GyMgvRWbY8ES0mXFyY45J-OEQt2x5f0poaOIv/s1600/Asbestos+Work+2.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="181" data-original-width="278" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj9aWILxAfQWLwbtX79GtdccFYoJOhu2z0bllKggTJzfsHdC805SZKGCb96QrDUjSWZGf8lXEaZD7sBaQojll0vTYg-ZsETNyYhz82v_l9GyMgvRWbY8ES0mXFyY45J-OEQt2x5f0poaOIv/s1600/Asbestos+Work+2.png" /></a><span style="font-size: large;">Exposure to dangerous substances in a rental unit causes a fair bit of anxiety. It is not uncommon for the tenant to have a more serious view of the risk posed by the dangerous substance than the view of the landlord or the view of the contractors hired by the landlord. It seems that many tenants fear that the landlord is indifferent to the health and safety of the tenant and that shortcuts are being taken in dealing with dangerous substances. The shortcuts are intended to save money by avoiding the safety protocols to do the job correctly. Further, it seems, that certain contractors appear to be indifferent to the "dangerous" substances and that they don't perceive the risks that the "dangerous" substances pose.</span></div>
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<span style="font-size: large;">This last statement about the "perception of risks" is a dominant feature in cases about dangerous substances. Invariably, the landlord side of the case will often argue that the tenant is over-reacting due to a false appreciation of the actual dangers posed by the substances. The argument is that a tenant hears a word (like "asbestos") and over-reacts out of a needless panic. The suggestion that the tenant is neurotic and hence unbalanced is the underlying thrust of the argument. The tenant's overreaction may be fueled by a "google" search that gives up horror stories in the countless number of search results that seem to prioritize the bad news stories and this in turn feeds the narrative that the tenant's appreciation of the circumstances is inaccurate.</span></div>
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<span style="font-size: large;">So what is the right approach to "dangerous substances" in a rental unit? Oddly enough, there isn't a clear cut and dried approach. Tenants, and people generally, are surprised to learn that there is very little legal guidance in how to deal with exposure to substances like asbestos, silica, EMF, in residential apartments. As you go looking for law and regulations what does pop up are Occupational Health and Safety requirements and guidelines. How substances like these need to be dealt with in the workplace is in fact addressed in quite some detail. The significant legal protection is apparent when you see a workplace dealing with asbestos and negative pressure rooms, full personal protective equipment, air filtration, and bagging of asbestos containing materials with disposal to special sites for dangerous substances. However, aside from finding law dealing with these substances in a work setting there is very little (to nothing) in the context of a residential apartment/rental unit.</span></div>
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<span style="font-size: large;">EXAMPLE OF A TYPICAL PROBLEM</span></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj1Q9hyphenhyphenGPTNfGlJvwKKyReq8J6h78tVBZUy2EyoKSH4MOLuXQbeRaEBsSgaux9hrotPBId9X7dN7FRl2zC2jppANmAiHNKlHP_ivo0uHruV0ZCu7zwsWEeYmArjLyCI78CDqisUrsxh_py4/s1600/Asbestos+Work.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="183" data-original-width="275" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj1Q9hyphenhyphenGPTNfGlJvwKKyReq8J6h78tVBZUy2EyoKSH4MOLuXQbeRaEBsSgaux9hrotPBId9X7dN7FRl2zC2jppANmAiHNKlHP_ivo0uHruV0ZCu7zwsWEeYmArjLyCI78CDqisUrsxh_py4/s1600/Asbestos+Work.jpg" /></a></div>
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<span style="font-size: large;">How about some examples of the context of what I'm taking about. Imagine an apartment where there is a water leak in the bathroom. The leak appears to be behind a wall or perhaps in the ceiling as the wall is getting soft and pliable. The landlord attends the unit and figures that the only way to determine what is going on is to "open up" the floor/wall/ceiling in the area where there is water/wetness/dampness. Doing so requires cutting into the materials to expose the interior of the wall or floor or ceiling. That cut might be through plaster, drywall, ceramic tiles, pliable tiles, paints (think lead), and other substances. The extent of the cutting really depends on how much is needed to find the source of the problem.</span></div>
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<span style="font-size: large;">So, imagine a wet ceiling in an apartment in the bathroom with the wall getting soft behind ceramic tiles that seem to falling from the wall. The landlord sends a contractor who cuts the wall and ceiling around a shower handle/faucet and the shower head. The source of a leak isn't immediately apparent, there is a stack in the wall that is opened and now the landlord goes to the unit above and opens the wall and piece of the floor. All of this to hunt for the source of the leak which surprise surprise has nothing to do with the plumbing but instead is coming from the flat roof and pooled water that has found a hole to the inside of the building. Now that the source of the water is identified we look around and see--cut ceramic tile, cut floor tile, cut plaster, cut drywall, cut grout, and layers of other materials that had been covered in years past during renovations. The cutting process leaves a fine dust like powder settling all over the apartment. Is any of this stuff dangerous?</span></div>
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<span style="font-size: large;">It turns out that many people will research whether this dust is dangerous. Inevitably, they find references to mold, asbestos, silica, lead, and other toxic substances. Now worried about their health, they approach the landlord and/or the contractor to ask for information and confirmation that their health is not in jeopardy. A fairly typical and flippant response is "there is nothing to worry about". For many, this answer does not inspire confidence.</span></div>
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<span style="font-size: large;">Sometimes however, the landlord or contractor will say, "you're right". Before we start work on repairing or renovating this space we will need to take the necessary safety precautions. Therefore we will have a "Designated Substances Survey" conducted. This will involve the gathering of samples from all around the apartment from all of the things we intend to move/disturb/replace/repair. The samples are collected and sent to a lab that will test the samples (scientifically) and prepare a report indicating which samples contained any of the dangerous substances.</span></div>
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<span style="font-size: large;">This kind of a response is reassuring, however, the tenant is left wondering "what about the fine dust all over my apartment that you caused while looking for the leak"? Shouldn't the tests have been done before you ripped open the walls/floor etc.? </span></div>
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<span style="font-size: large;">If a contractor/landlord goes through the process of doing a "designated substances survey" my experience is that they will follow the processes necessary to handle any identified substances properly. In essence if they go through the trouble of testing they are prepared to act in accordance with what the tests reveal.</span></div>
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<span style="font-size: large;">The issue lies more with the work being done where the landlord or contractor feels that it is unnecessary to test for dangerous substances and where they avoid doing the "designated substances survey". What rights does a tenant have then? Does the <i>Residential Tenancies Act</i> provide any protection for tenants?</span></div>
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<span style="font-size: large;"><b><i>THE RESIDENTIAL TENANCIES AC</i></b>T</span></div>
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<span style="font-size: large;">There is nothing in the Residential Tenancies Act that specifically deals with designated substances in a rental unit. By this I mean, if you search the entire <i>Residential Tenancies</i> Act and the Regulations th</span><span style="font-size: large;">ereto you will not find the word "asbestos" anywhere. You will have a similar result when you search for other dangerous substances. The RTA does not specify specific rules for specific substances. Does this mean that the tenant is simply out of luck and subject to the whim of the landlord and its contractors?</span></div>
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<span style="font-size: large;">It turns out that there is, in fact, protection for tenants from dangerous substances like asbestos, in the <i>Residential Tenancies Act</i>. Unfortunately, the protection is somewhat indirect and there is no explicit direction or clear set of rules that deal with the specific things that a tenant sees in their apartment--for example, the white dust settling all over the unit, debris from construction materials, mold spores entering the air, or any of the other things a tenant sees as a result of construction work. The protections available to a tenant arise from general obligations and duties imposed on a landlord under the <i>Residential Tenancies Act</i>.</span></div>
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<i><span style="font-size: large;">How it works</span></i></div>
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<span style="font-size: large;">The Residential Tenancies Act, at section 20, sets out the "<a href="https://www.canlii.org/en/on/laws/stat/so-2006-c-17/latest/so-2006-c-17.html#sec20subsec1" target="_blank">Landlord's Responsibility to Repai</a>r". This section requires the landlord to maintain a rental unit in a good state of repair and fit for habitation and for complying with health, safety, housing and maintenance standards. These phrases, as you can see, are rather open ended and broad. What exactly does the phrase "good state of repair" mean--I'd suggest it means an awful lot and can include a great many things that are beneficial for a tenant. Likewise for the phrase "fit for habitation" and complying with "health, safety, housing and maintenance standards". These phrases are, in my opinion, very broad and open ended and therefore impose a rather significant burden on a landlord. The wording is broad and general so that a landlord can't easily avoid the obligations through technicalities.</span></div>
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<span style="font-size: large;">Using for a minute, our asbestos example and the cutting of the wall/floor/ceiling. If the act of cutting open the walls/floor/ceiling resulted in friable asbestos fibre being dislodged and put into the air capable of being breathed would you not conclude that the apartment was NOT "fit for habitation"? If the asbestos fibre can be inhaled is the landlord complying with health and safety? If open walls are exposing black mold into the rental unit and tenants are breathing the mold spores is the unit "fit for habitation"? I think that the answer very clearly is that it is not. The broad wording of section 20 RTA is easily engaged (and breached) if you can demonstrate a dangerous activity happening in the rental unit (i.e. breathing in asbestos fibres, mold spores, etc.).</span></div>
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<span style="font-size: large;">Accordingly, we need to look at section 20 of the <i>Residential Tenancies Act</i> as establishing a very high burden on the landlord to fulfill its maintenance responsibilities in accordance with the duty described in this section. The duty, for sure, is broadly worded and in that breadth it will capture all sorts of actions and situations that should not occur. This is the case even though the word "asbestos" does not appear (nor any other dangerous substance) anywhere in the RTA.</span></div>
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<span style="font-size: large;">So what is a tenant to do if the fine white dust covering everything is suspected of being a dangerous substance and the landlord or its contractor is indifferent and unwilling to do anything about it? What if the landlord says that the dust is harmless and there is nothing to do but get out the Swiffer? </span><br />
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<span style="font-size: large;">The first steps will be to see if an official inspector can be found to make Orders against the landlord. This is the preferred course of action (if possible) because it results in immediate action without much effort or work for the tenant. Therefore, if the premises are an active work site then the Ontario Ministry of Labour may exercise its administrative and/or regulatory enforcement powers under the <i>Occupational Health and Safety Act (OHSA)</i>. There can be "stop work" orders and prosecutions as necessary. A tenant could benefit from such inspections and orders even if the Ministry's mandate is the workers and OHSA and not specifically tenants in the housing sense.</span></div>
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<span style="font-size: large;">If appealing to officialdom (Ministry of Labour) is not possible or impractical, what should a tenant do then? The first step, I think is to collect samples and send them to a lab for testing. The question to be answered is whether there actually is a risk and a dangerous substance in the rental unit. Without scientific proof (test results), that the substances being identified by a tenant are dangerous the presumption will be that they are not. If a tenant wishes to compel the landlord to treat a unit as containing designated and harmful substances the tenant will have to prove that those substances exist in the rental unit. If the landlord denies that the powder, dust, mold, fibres, paint chips, etc., are dangerous and that special handling is not required it is up to the tenant to prove that indeed the powder, dust, mold, fibres, etc., are indeed dangerous and designated substances because in the absence of doing so the tenant will not meet the burden of proof that is applicable in any application. This is the first critical step that needs to be done.</span></div>
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<span style="font-size: large;">With a report in hand identifying the presence of "asbestos" or "dangerous mold" or "lead paint", a tenant can then link the handling of these dangerous substances, inside the apartment or rental unit, with the duty imposed on a landlord under section 20. The tenant's concerns, once the presence of a dangerous or designated substance is identified, are given credibility as it can't be said that you should be indifferent to the presence of "asbestos" that you prove as present based on the lab report testing the materials from inside the apartment.</span></div>
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<span style="font-size: large;">The next step is for a tenant to establish what the presence of the designated substance in their rental unit means to their health, safety, and personal circumstances. There may be "asbestos" but what does this mean for habitability of the apartment and the tenant's health? That there is asbestos in a rental unit is not at all a surprise and that a test result of materials in a unit would reveal a designated (and dangerous substance) is not in itself shocking. Asbestos is in many materials and it is "safe" because it is bound to other materials and not airborne capable of being inhaled. So what is it about the presence of the designated substance, (proven to be in the rental unit by the lab report), that makes it dangerous to the tenant?</span></div>
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<span style="font-size: large;">Answering this last question can be done in many different ways. If we are talking about disturbed asbestos fibre (from cutting, drilling, scrapping or chipping), in a dust that has settled through the apartment onto carpet, furniture, fixtures, I would be inclined to seek a medical report/opinion about the risks of exposure to asbestos in this form. The manner of the asbestos containing dust getting onto everything is indeed relevant. Asbestos that was combined in a floor tile that now is airborne as a result of cutting, drilling etc., has a very different safety profile that needs to be addressed by the right professional.</span><br />
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<span style="font-size: large;">The right professional may be the tenant's family doctor, who might themselves have consulted with a specialist, to answer the question: "Is my patient exposed to any risk if they inhale white dust that has been shown to contain asbestos fibres"? Perhaps the doctor is given a copy of the lab report showing the concentrations of the substances identified. The doctor can then identify the health risk to the tenant and provide advice. That advice might include a direction not to disturb the dust, not to inhale it, to have the dust professionally cleaned, and for the tenant to not to remain in the unit pending the dust being cleaned up. The opinions expressed by the doctor should be grounded in their knowledge and expertise as physicians.</span></div>
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<span style="font-size: large;">Other experts can also be consulted and a series of opinions can be obtained that explain the nature of the substance, how it is a danger, how it should be handled, and what a person who has been exposed can do to mitigate the risks of exposure.</span></div>
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<span style="font-size: large;">Once this evidence has been obtained a tenant should continue to try and work with the landlord to have the issue addressed. On the assumption that the landlord and its contractor remain indifferent to the situation the next step is to file a T6 Application with the <i>Ontario Landlord and Tenant Board</i>. The T6 Application is a tenant's application about maintenance. In that application a tenant is setting out the maintenance problems (from our example--the wet wall) and what the landlord did (cut the wall) and how that action caused a dangerous substance to be distributed around the apartment (proven to be a dangerous substance by the lab report).</span><br />
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<span style="font-size: large;">The application (T6) will continue to explain that the presence of the dangerous substance is a breach of the section 20 RTA obligation because it exposes the tenant to serious health risks and that while the serious health risks are present the unit is not "fit for habitation". The serious health risks are explained in the doctors report. Additional reports (engineers, specialists, health inspectors, etc.), can be referenced to prove these points.</span></div>
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<span style="font-size: large;">The second part of the T6 application will then be to claim the appropriate remedies. If the tenant has proven the existence of the duty (easy--because that's section 20), the breach of the duty (being exposed to the dangerous substance as explained in the lab report) and that the breach amounting to a serious health danger (proven by doctor's report), the question will be what should the LTB order/award the tenant.</span></div>
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<span style="font-size: large;">The LTB's powers in a T6 application are fairly broad and the LTB can Order the landlord to do certain work, clean up, repair, and do things in a way that makes the rental unit safe. The tenant can be awarded a rent abatement, replacement costs for damaged personal property, and there is a broad power to make other appropriate awards. What is appropriate really depends on the facts of the case.</span></div>
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<span style="font-size: large;">A word of caution when bringing T6 applications (and/or the associated T2 Tenant's Rights application). The <i>Landlord and Tenant Board</i> has a maximum jurisdiction of $35,000, and it is not well set up as a venue for personal injury claims. If the exposure to the designated substance has potentially caused significant personal injury it may be wise to pursue the claim in the Superior Court where there is no monetary maximum to the award. While splitting claims is generally frowned upon and there is a risk of losing the right to sue (section 207 (3) RTA), it may be worth exploring having the LTB make orders in relation to clean up only and nothing with respect to the health impacts of the incident with the intent of preserving the personal injury aspect of the claim to the Superior Court.</span></div>
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<span style="font-size: large;"> Michael K. E. Thiele</span></div>
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<span style="font-size: large;">www.ottawalawyers.com</span></div>
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Michael K. E. Thielehttp://www.blogger.com/profile/10247495615982921581noreply@blogger.com2