. Sapershteyn et al v. 1821317 Ontario Limited et al
In Sapershteyn et al v. 1821317 Ontario Limited et al (Div Court, 2023) the Divisional Court considered an appeal from a LTB order that reimbursed illegal rent charges [under RTA 135]. A landlord appeal was dismissed despite arguments that an RTA provision that 'deems' illegal rents - if paid for continuously more than a year - as legal [RTA 135.1 - 'Rent increase deemed not void'] - which came into force 21 July 2020.
The specific issue here was the interpretation of RTA s.135.1(5), a transition provision which renders the new 'deemed not void' law to be retroactively applicable to rent charged before that in-force date "provided the validity of the rent increase was not finally determined by the Board before that day". The court addressed this phrase under statutory interpretation doctrine and found that the rent increase had been finally determined before 21 July 2020, consequently RTA 135.1 did not apply retroactively and that thus the full rent rebate was due.
. Sapershteyn et al v. 1821317 Ontario Limited et al
[16] Accordingly, the legislature changed the legislative scheme allowing for illegal increases in rent if the tenant pays the illegal increase in rent in respect of each rental period for at least 12 months and if any illegal increase in rent before July 21, 2020, is not “finally determined by the Board” before July 21, 2020. It is not disputed that this change in this legislation was a response to the Ontario Court of Appeal decision in Price v. Turnbull’s Grove Inc.[12]
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