Last updated: August 16, 2024
Decision in favor of
Tenant
Ordered Amount
-
to Tenants
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Citation: Sapershteyn et al v. 1821317 Ontario Limited et al, 2023 ONSC 5977
File Number: DC-23-016-00
Hearing Date
Oct 2023
Order Date
Oct 31, 2023
The Divisional Court dismissed the landlord's appeal of the Landlord and Tenant Board's decision ordering repayment of illegal rent increases. While the court found the Board erred in characterizing the purpose of section 135.1 of the RTA, it held that the Board did not err in its interpretation of 'finally determined' or in its application of the law to the facts. The court deferred to the Board's expertise in determining that there was a final determination of the rent increase validity before July 21, 2020, which meant section 135.1 did not apply to prevent repayment.
Tenants applied to the Landlord and Tenant Board seeking a determination that the Residential Tenancies Act applied to their units and that the landlord had collected illegal rent increases and HST. The Board ruled in favor of the tenants, ordering the landlord to repay the illegal rent. The landlord appealed the Board's decision to the Divisional Court, arguing that section 135.1 of the RTA should have prevented the Board from ordering repayment.
Landlord argued that section 135.1 of the RTA, which came into force on July 21, 2020, prevented the Board from ordering repayment of illegal rent increases that had been paid for at least 12 consecutive months.
Landlord charged illegal rent increases and HST to tenants, operating the units as if they were commercial and not subject to the RTA.
Landlord operated rental units as if they were commercial, charging HST and not complying with RTA rent increase rules
Tenants argued that the RTA applied to their units and that they were entitled to repayment of illegal rent increases and HST charges collected by the landlord.
Tenants applied to the Board for a determination that the RTA applied to their units and for repayment of illegal rent increases and HST charges.
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Other Amount
$25,000
Maximum amount of illegal rent increases to be repaid per tenant
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