Divisional Court Upholds Significant Rent Increase: Padathe v. Lee, 2023 ONSC 4560
Court upholds 105% rent increase for new building, dismissing tenants' stay of eviction request
Summarized by RentZenLast updated: August 16, 2024
Case Summary
Decision in favor of
landlord
Balance Owed
-
Dispute Categories
Agree with the ruling?
Timeline
Order Date
Aug 8, 2023
Dispute Summary
Tenants sought a stay of eviction and review of a previous court decision that refused to extend time for them to appeal a Landlord and Tenant Board order. The LTB had allowed the landlord to increase rent from $1,950 to $3,998 per month, which the tenants could not afford. The tenants failed to appeal the LTB decision in time and were unsuccessful in getting an extension to appeal.
Determinations
- Tenants failed to establish a serious issue to be tried on the review motion
- Balance of convenience does not favor granting a stay
- LTB correctly applied law regarding rent increases for new buildings
- No reviewable errors in previous court decision refusing to extend time for appeal
Case Study
The court found that while the tenants would suffer irreparable harm if evicted, they did not establish a serious issue to be tried on the review motion or that the balance of convenience favored granting a stay. The court determined that the LTB and previous court decision correctly applied the law regarding rent increases for new buildings and that there were no reviewable errors in the decisions.
Arguments and Actions
Landlord
Arguments
Landlord argued that the rental unit is exempted from rent increase guidelines pursuant to section 6.1(2) of the Residential Tenancies Act.
Actions
Landlord increased rent from $1,950 to $3,998 per month, citing exemption from rent increase guidelines for new buildings.
Tenant
Arguments
Tenants referenced the duty to accommodate in the Human Rights Code, sections 7 and 15 of the Canadian Charter of Rights and Freedoms, and exceptions to the exemption in s.6.1 of the Residential Tenancies Act.
Actions
Tenants argued that such a substantial rent increase is manifestly unfair and that one of the tenants is elderly and disabled, which would severely prejudice them if evicted.
Procedural Errors
Tenants failed to appeal the Landlord and Tenant Board decision within the required timeframe.
Decision Summary
The court dismissed the tenants' motion for a stay of eviction pending their review of a previous court decision. The court found that while the tenants would suffer irreparable harm, they did not establish a serious issue to be tried or that the balance of convenience favored granting a stay. The court upheld the previous decisions allowing a significant rent increase from $1,950 to $3,998 per month, finding it was lawful under the exemption for new buildings from rent control guidelines.
Adjudicator Details
Divisional Court
Total Orders
19
Landlord Favorable
79.0%
Tenant Favorable
15.8%
Mutual Agreement
5.3%
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Financial Details
Lawful Rent
$3,998
Source
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