Mutual Agreements
Amounts
Lack of Consent
What can the Board order based on a T3 application?
Amounts / How would the rent reduction be determined by the Board?
Do tenants have other recourse?
What if the amenity was never spelled out in the lease?
- the estoppel by conduct principle ("when a man, by his words or conduct, has led another to believe in a particular state of affairs, he will not be allowed to go back on it when it would be unjust or inequitable for him to do so" (Moorgate Mercantile Company Ltd v Twitchings), even though it is important to remember, as stated in 1086891 Ontario Inc. v. Barber, 2007 CanLII 18734 (ON SCDC), at para 19, <https://canlii.ca/t/1rldv#par19>, "Estoppel cannot override statute (see Harzuz Holdings Ltd. v. Peel (Regional Municipality), [2006] O.J. No. 1830)"), and
- the doctrine of laches (Black's Law Dictionary: "equity aids the vigilant and not those who slumber on their rights").
33. The Tenants’ Legal Representative argued that the Tenants are entitled to compensation as the Tenants’ had contracted for specific appliances that were subsequently replaced by the Landlords with diminished ones. While this argument may be correct, it must be made pursuant to section 130 of the Act. This T2 application filed pursuant to section 29 of the Act with remedies available pursuant to section 31 of the Act is not the relevant application.
34. Section 130 of the Act specifically contemplates that a landlord may unilaterally reduce or discontinue a service or facility that was originally provided and formed part of the tenancy agreement. If a landlord removes a service or facility the tenant may file the applicable application with the Board and request a rent reduction. That application is a T3 application.
35. Subsection 2(1) of the Act states:
“services and facilities” includes,
(a) furniture, appliances and furnishings,
36. I agree with and adopt the following reasoning as set out in order CET-68554-17-RV:
a) Section 130 of the Act states:
130 (1) A tenant of a rental unit may apply to the Board for an order for a reduction of the rent charged for the rental unit due to a reduction or discontinuance in services or facilities provided in respect of the rental unit or the residential complex.
Same, former tenant
(2) A former tenant of a rental unit may apply under this section as a tenant of the rental unit if the person was affected by the discontinuance or reduction of the services or facilities while the person was a tenant of the rental unit.
Order re lawful rent
(3) The Board shall make findings in accordance with the prescribed rules and may order,
(a) that the rent charged be reduced by a specified amount;
(b) that there be a rebate to the tenant of any rent found to have been unlawfully collected by the landlord;
(c) that the rent charged be reduced by a specified amount for a specified period if there has been a temporary reduction in a service.
Same
(4) An order under this section reducing rent takes effect on the day that the discontinuance or reduction first occurred.
Same, time limitation
(5) No application may be made under this section more than one year after a reduction or discontinuance in a service or facility.
b) The amount of the rent reduction that a tenant may be entitled to is determined in accordance with the prescribed rules that are set out in section 39 of Ontario Regulation 516/06 (the ‘Regulation’) made under the Act.
c) The Regulation sets out different rules for determining an appropriate rent reduction depending on whether a landlord’s removal or discontinuance of a service was reasonable or unreasonable.
d) Therefore, whether a landlord’s removal of a service was reasonable or unreasonable, a tenant’s remedy is a rent reduction which is determined in accordance with the prescribed rules.
e) The Tenants did not file a T3 application. They filed a T2 application claiming substantial interference. That claim is governed by sections 29 and 31 of the Act which permit different remedies to be requested and ordered.
f) In this case, the Tenants were requesting that the free visitor’s parking be re-instated. That is not an available remedy under section 130 of the Act.
g) I acknowledge that there may be circumstances where a reduction or discontinuance in a service or facility could potentially be characterized as a substantial interference with a tenant’s reasonable enjoyment of the rental unit or residential complex. However, in my view, it is not appropriate to permit that type of claim to be filed under a T2 application so that a tenant may circumvent section 130 of the Act and request a different remedy than what is provided for under the Act or to get around the one year limitation period set out in subsection 130(5) of the Act.
h) Substantial interference with reasonable enjoyment is very broad and general claim and could potentially encompass any number of issues that could arise during a tenancy. However, when an issue raised in an application falls under a more specific and applicable section of the Act, the issue should be determined under that specific and applicable section.
i) This is similar to the situation that arises when a tenant does not pay the rent that is due. There is an applicable process, remedy and application for rent arrears. Although a tenant’s failure to pay the rent could potentially be characterized or claimed as a substantial interference with a landlord’s reasonable enjoyment of the residential complex, the Board does not determine rent arrears issues under that type of claim. It requires a landlord to follow the applicable process and sections in the Act regarding rent arrears.
37. Consequently, to make a finding based on an application under section 29 of the Act instead of a finding based under section 130 disregards the statutory framework as the Act contemplates a change in a service or facility that is provided as part of the tenancy and the Act provides rules and remedies for such a change. "
15. In Feather v. Bradford (Town),[1] the Ontario Court of Appeal succinctly set out the general principles of estoppel by conduct as follows:
[56] The general principle of estoppel by representation is aptly stated in Jill E. Martin, Hanbury and Martin: Modern Equity 16th ed. (London: Sweet & Maxwell, 2001), at p. 891:
[A] person who makes an unambiguous representation, by words, or by conduct, or by silence, of an existing fact, and causes another party to act to his determent in reliance on the representation will not be permitted subsequently to act inconsistently with that representation. [Emphasis added.]
16. Through their conduct the Landlords permitted the Tenant the right to unassigned parking spaces for her car and that of her guests. Having relied upon that representation, the male Landlord is estopped from claiming authority to revoke this right four years later.
17. Consequently, I also find for at least the past year the Landlords have substantially interfered with the reasonable enjoyment of the rental unit for all usual purposes by the Tenant and the Tenant’s son while he was an occupant of the rental unit by demanding adherence to arbitrary rules with respect to parking for the Tenant and her guests, including her family members, contrary to a long established practice whereby the Tenant’ has two parking spots to use for herself and her guests and guests were able to park behind her car.
18. I also find the Tenant and her son suffered upset caused by, and fear of, the male Landlord to the point where they had to engage in soothing communications to mollify his dictatorial behaviour regarding parking."
16. At the October 20th Prehearing the Tenant testified that as a result of the removal of the on-site superintendent, the Tenant has experienced and continues to experience multiple disturbances, including difficulties receiving rent receipts, having his rent cheques cashed on unpredictable days and inconsistent garbage collection.
17. The Board’s Guideline 6 pertaining to tenants’ rights provides guidance with respect to the application of the limitation period in subsection 29(2) of the Act. The guideline states that when a Landlord’s breach of the Act is a single event, the limitation period begins on the day the event happened. However, where the breach is not a single event but is ongoing or recurring as may be the case with some instances of interference with reasonable enjoyment, then the breach occurs over a period of time and the limitation period runs from the date that behaviour causing the interference with reasonable enjoyment ceases.
18. In the present case, the Tenant provided evidence that the interference with his reasonable enjoyment is ongoing and it has not ceased. Therefore, I find that the one-year limitation period in respect of this application has not yet begun to run, let alone expired. Accordingly, I find that the Tenant’s request to amend the T2 Application to add the Potential Parties is not dismissed for being out of time.
19. Accordingly the next step in my analysis is to apply Rule 16 of the Board’s Rules of Practice. Rule 16.4 sets out a non-exhaustive list of factors that the Board must consider when determining whether to grant amendment to an application.
20. The factors that support granting the amendments are:
• The amendment was requested in good faith and it necessary to ensure that those who were affected by the removal of the on-site superintendent have the opportunity to have their claims heard. Based on the Tenant’s honest and candid testimony at the prehearings, I am satisfied that the Tenant’s request to add the Potential Parties was made in the honest, but mistaken belief that the amendment would be automatic as long as the merits hearing had not begun.
• Any prejudice the Landlord would suffer by adding the Potential Parties is minimized by the fact that the Tenant is not seeking to change any of the issues in the T2 Application, only to add parties. Therefore, the proposed amendments should not delay, extend or render more complex the Landlord’s preparation for the merits hearing.
• If the proposed amendments are granted they should not delay the start of the proceedings. Preliminary issues were addressed at the prehearings, which should have the effect of streamlining the hearing. I also mentioned to the Tenant at the prehearings that if the proposed amendments were granted, he would also be expected to organize his evidence so that common issues are presented in a way that minimizes repetition of evidence. At the same time, some delay in the length of the hearing would be inevitable if the Potential Parties were added because each applicant would have to establish their entitlement to a remedy.
21. The factors that support denying the amendments are:
• I am not convinced that the amendment was requested as soon as the need for it was known. The Tenant testified that he sought legal advice prior to filing the applications and he was aware of a one-year limitation period at issue. Nevertheless, the Tenant filed the application on the second-last day of that limitation period and only then did he reach out to other tenants in the residential complex and canvas whether they were interested in joining the applications.
• If the amendments are granted the Landlord will also suffer the obvious prejudice of having to face greater potential liability because there will be more claimants.
22. However, I find that the most important and practical factor that must be considered falls under the category of “any other relevant factors”. As already determined, the limitation period for the T2 Application has not yet expired. Therefore, there is nothing in the legislation or the Rules that would stop the Potential Parties from filing their own application(s) if the amendments were denied. Section 183 of the Act requires the Board to adopt the most expeditious manner of determining the questions arising out of a proceeding while ensuring that those who are directly affected by the proceeding have the right to be heard. I find that adding the Potential Parties to the existing T2 Application, which has already gone through a CMH and two prehearings would be in-keeping with the Board’s obligations under section 183.
23. Accordingly, the proposed amendments to the T2 Application are granted and the Potential Parties are added as applicants to the application. Therefore, for the remainder of the order, the Tenant and the Potential Parties will be referred to as the “Tenants” in regards to the T2 Application only.
T3 Application
24. I find that the limitation period in subsection 130(5) should be treated differently from the limitation period in subsection 29(2). First, Guideline 6 only deals with the limitation period in subsection 29(2). However, it does say that when a breach is a single event, the limitation period begins on the day the event happened. In this case, the root of the T3 application is single event – the one-time removal of the on-site superintendent. Second, the wording of the limitation period in subsection 130(5) is clear that an application cannot be filed more than one year after the discontinuance of a service. This section seems to address, and render irrelevant, the notion that the unavailability of the discontinued service is ongoing. Therefore, I find that the limitation period in subsection 130(5) clearly bars the addition of the Potential Parties because the Tenant asked to have them added after April 21, 2016 when the limitation period expired.
25. At the August 10th Prehearing, the Landlord’s legal representative argued that the Tenant’s proposed amendments to both the T2 and the T3 Applications should be denied and he cited subsection 21(1) of the Limitations Act, 2002 in support of his position. That provision provides:
If a limitation period in respect of a claim against a person has expired, the claim shall not be pursued by adding the person as a party to an existing claim.
26. The Landlord’s Legal representative also relied on the decision in Meady v. Greyhound Canada et al (2007, Canlii 16633 ON SC), which interprets the above provision in the Limitations Act, 2002.
27. In preparation for the October 20th Prehearing, I issued interim order TST-73104-16-IN2 on August 16, 2016. In that order, I asked that the parties come to the next prehearing prepared to make submissions about whether the Limitations Act, 2002 applies to proceedings at the Board. Neither party made new arguments with respect to this issue at the October 20th Prehearing and I am not aware of any court or Board decisions that have dealt with this issue before.
28. Based on language found in the Limitations Act, 2002 I am not satisfied that this legislation applies to proceedings at the Board. Subsection 2(1) of the Limitations Act, 2002, is the “application” section and it states: “This Act applies to claims pursued in court proceedings other than..” and is followed by a list of proceedings commenced under different pieces of legislation. However, the term “court proceedings” appears to exclude from that statute’s application proceedings before tribunals like the Board. In addition, the Act does not refer to the Limitations Act, 2002. Although I have found that the Limitations Act, 2002 does not apply to Board proceedings I essentially agree with the wording of subsection 21(1) as it applies to the Tenant’s attempt to add new parties after the limitation period in subsection 130(5) had expired.
29. As the decision in Meady v. Greyhound Canada interprets the application of subsection 2(1) of the Limitations Act, 2002 to a court proceeding, I do not find it applicable to the Board’s proceeding or the T3 Application before me. There are too many differences between Meady and the case before me, including significant differences in the length of the applicable limitation periods, the wording of the rules of procedure at the Superior Court of Justice versus the Board’s Rules and the role of costs at both forums (for compensating newly-added parties who have been added improperly). As the parallels between Meady and the case before me are too remote or hard to identify, I find that Meady is not useful for my analysis.
30. I see no reason to override the limitation period in subsection 130(5) of the Act. According to that provision, the limitation period in relation to the Tenant’s claim in the T3 Application expired on April 21, 2016. As the Tenant requested that additional tenants be added as applicants to the application after this date, those requests for amendments/additions of parties are out of time. Therefore, the amendments to the T3 Application are denied.
31. Pursuant to my discretion under section 198(2) of the Act. The applications are severed. The applications will still be heard together."
2. The Tenants allege a number of errors in the order or proceedings and disagree with the Member’s dismissal of the T2 application.
3. On the basis of the submissions made in the request, I am not satisfied that there is a serious error in the order or that a serious error occurred in the proceedings.
4. There was no dispute that there used to be free visitor’s parking at the building. The Landlord converted that free visitor’s parking to paid visitor’s parking on August 9, 2016. This was a unilateral change on the Landlord’s part. The Tenants did not agree to this change. As a result of the change, there was a reduction or discontinuance in a service or facility at the building.
5. The Member determined that the Landlord’s obligation to ensure that there is no substantial interference with the reasonable enjoyment of the rental unit or residential complex does not extend to the Tenants’ guests.
6. It would primarily be the Tenants’ guests that would be inconvenienced or out of pocket for the cost of the visitor’s parking at the building.
7. Subsection 29(1) of the Residential Tenancies Act, 2006 (the 'Act') states that a tenant may apply to the Board if the landlord or their agent has substantially interfered with the reasonable enjoyment of the rental unit or residential complex for all usual purposes by the tenant or a member of his or her household. (emphasis added)
8. Given the wording in subsection 29(1) of the Act, the Member’s determination that the Landlord’s obligation does not extend to visitors was not unreasonable.
9. Furthermore, the T2 application that the Tenants filed was not the relevant application to address the issue in the application.
10. Section 130 of the Act specifically contemplates that a landlord may unilaterally reduce or discontinue a service or facility that was originally provided and formed part of the tenancy agreement. If a landlord removes a service or facility the tenant may file the applicable application with the Board and request a rent reduction. That application is a T3 application.
“services and facilities” includes,
(b) parking and related facilities,
12. Section 130 of the Act states:
130 (1) A tenant of a rental unit may apply to the Board for an order for a reduction of the rent charged for the rental unit due to a reduction or discontinuance in services or facilities provided in respect of the rental unit or the residential complex.
Same, former tenant
(2) A former tenant of a rental unit may apply under this section as a tenant of the rental unit if the person was affected by the discontinuance or reduction of the services or facilities while the person was a tenant of the rental unit.
Order re lawful rent
(3) The Board shall make findings in accordance with the prescribed rules and may order,
(a) that the rent charged be reduced by a specified amount;
(b) that there be a rebate to the tenant of any rent found to have been unlawfully collected by the landlord;
(c) that the rent charged be reduced by a specified amount for a specified period if there has been a temporary reduction in a service.
Same
(4) An order under this section reducing rent takes effect on the day that the discontinuance or reduction first occurred.
Same, time limitation
(5) No application may be made under this section more than one year after a reduction or discontinuance in a service or facility.
13. The amount of the rent reduction that a tenant may be entitled to is determined in accordance with the prescribed rules that are set out in section 39 of Ontario Regulation 516/06 (the ‘Regulation’) made under the Act.
14. The Regulation sets out different rules for determining an appropriate rent reduction depending on whether a landlord’s removal or discontinuance of a service was reasonable or unreasonable.
15. Therefore, whether a landlord’s removal of a service was reasonable or unreasonable, a tenant’s remedy is a rent reduction which is determined in accordance with the prescribed rules.
16. The Tenants did not file a T3 application. They filed a T2 application claiming substantial interference. That claim is governed by sections 29 and 31 of the Act which permit different remedies to be requested and ordered.
17. In this case, the Tenants were requesting that the free visitor’s parking be re-instated. That is not an available remedy under section 130 of the Act.
18. I acknowledge that there may be circumstances where a reduction or discontinuance in a service or facility could potentially be characterized as a substantial interference with a tenant’s reasonable enjoyment of the rental unit or residential complex. However, in my view, it is not appropriate to permit that type of claim to be filed under a T2 application so that a tenant may circumvent section 130 of the Act and request a different remedy than what is provided for under the Act or to get around the one year limitation period set out in subsection 130(5) of the Act.
19. Substantial interference with reasonable enjoyment is very broad and general claim and could potentially encompass any number of issues that could arise during a tenancy. However, when an issue raised in an application falls under a more specific and applicable section of the Act, the issue should be determined under that specific and applicable section.
20. This is similar to the situation that arises when a tenant does not pay the rent that is due. There is an applicable process, remedy and application for rent arrears. Although a tenant’s failure to pay the rent could potentially be characterized or claimed as a substantial interference with a landlord’s reasonable enjoyment of the residential complex, the Board does not determine rent arrears issues under that type of claim. It requires a landlord to follow the applicable process and sections in the Act regarding rent arrears.
21. The Tenants state that they orally requested reasons at the hearing and the order fails to provide those reasons. This does not amount to a serious error that would change the outcome in the order.
22. The Tenants also state that the hearing was only partially, but not fully recorded. Again, this does not amount to a serious error that would change the outcome in the order.
23. Although the order is quite sparse with respect to reasons and analysis, the outcome in the order (dismissal of the application) is reasonable given my determinations above and will not be interfered with on review.
24. The review request is denied in accordance with Rule 29.11(c) of the Board’s Rules of Practice because the grounds for considering a review are not satisfied."
16. The Tenant testified that the Landlord provided him with a stove when the tenancy commenced which was removed as of mid-October 2017. He said the Landlord gave him two hot places as of November 2017 but both did not work. He claims he had to eat out from mid-October 2017 to January 12, 2018 when he purchased a used stove.
17. The Landlord testified that she never provided the Tenant with a stove. She said she gave him a microwave and also gave him two hot places and a convection oven.
18. It is more probable that the Landlord provided the Tenant with a stove when the tenancy commenced. The Landlord’s evidence that she purchased a convection oven on October 30, 2017 and two induction hot plates on October 20, 2017 support a finding that there was a stove in the unit prior to this purchase as it is unlikely the Landlord would purchase these appliances if there was already a stove in the unit.
19. However the issue claimed by the Tenant does not amount to a breach of section 20.
20. I agree with and adopt the following reasoning as set out in Order CET-68554-17-RV:
a) Furthermore, the T2 application that the Tenants filed was not the relevant application to address the issue in the application.
b) Section 130 of the Act specifically contemplates that a landlord may unilaterally reduce or discontinue a service or facility that was originally provided and formed part of the tenancy agreement. If a landlord removes a service or facility the tenant may file the applicable application with the Board and request a rent reduction. That application is a T3 application.
c) Section 2 of the Act states in part:
a. “services and facilities” includes,
i. (b) parking and related facilities,
d) Section 130 of the Act states:
130 (1) A tenant of a rental unit may apply to the Board for an order for a reduction of the rent charged for the rental unit due to a reduction or discontinuance in services or facilities provided in respect of the rental unit or the residential complex.
Same, former tenant
(2) A former tenant of a rental unit may apply under this section as a tenant of the rental unit if the person was affected by the discontinuance or reduction of the services or facilities while the person was a tenant of the rental unit.
Order re lawful rent
(3) The Board shall make findings in accordance with the prescribed rules and may order,
a) that the rent charged be reduced by a specified amount;
b) that there be a rebate to the tenant of any rent found to have been unlawfully collected by the landlord;
c) that the rent charged be reduced by a specified amount for a specified period if there has been a temporary reduction in a service.
Same
(4) An order under this section reducing rent takes effect on the day that the discontinuance or reduction first occurred.
Same, time limitation
(5) No application may be made under this section more than one year after a reduction or discontinuance in a service or facility.
e) The amount of the rent reduction that a tenant may be entitled to is determined in accordance with the prescribed rules that are set out in section 39 of Ontario Regulation 516/06 (the ‘Regulation’) made under the Act.
f) The Regulation sets out different rules for determining an appropriate rent reduction depending on whether a landlord’s removal or discontinuance of a service was reasonable or unreasonable.
g) Therefore, whether a landlord’s removal of a service was reasonable or unreasonable, a tenant’s remedy is a rent reduction which is determined in accordance with the prescribed rules.
h) The Tenants did not file a T3 application. They filed a T2 application claiming substantial interference. That claim is governed by sections 29 and 31 of the Act which permit different remedies to be requested and ordered.
i) Substantial interference with reasonable enjoyment is very broad and general claim and could potentially encompass any number of issues that could arise during a tenancy. However, when an issue raised in an application falls under a more specific and applicable section of the Act, the issue should be determined under that specific and applicable section.
j) This is similar to the situation that arises when a tenant does not pay the rent that is due. There is an applicable process, remedy and application for rent arrears. Although a tenant’s failure to pay the rent could potentially be characterized or claimed as a substantial interference with a landlord’s reasonable enjoyment of the residential complex, the Board does not determine rent arrears issues under that type of claim. It requires a landlord to follow the applicable process and sections in the Act regarding rent arrears.
21. To make findings based on an application under sections 29 and 31 of the Act instead of findings based under section 130 disregards the statutory framework of the Act because the Act contemplates a change in a service or facility that is provided as part of the tenancy and the Act provides rules and remedies for such a change.
22. In this case subsection 2(1)(a) includes appliances in the definition of service or facility. Therefore in seeking an abatement for the removal of a stove, the Tenant ought to have filed a T3 application such that the relevant rules and remedies for such a change could be applied.
23. However, I have also considered whether the removal of the stove amounts to substantial interference. The evidence does not establish that the removal of the stove amounts to substantial interference. The Landlord provide the Tenant with multiple appliances (two hot plates, a microwave and a convection oven) to replace the stove. It is unlikely that the Tenant would be unable to prepare most meals with these appliances. The Tenant has an obligation pursuant to section 16 to minimize losses in the event of a breach. I am not satisfied that the removal of the kitchen exhaust which probably occurred when the stove was removed impacted the Tenant with the use of the replacement appliances provided to him. His photo of the kitchen shows a window above the sink which provides the Tenant with a means to air out any cooking odours or smoke.
24. The Tenant’s complaint that the Landlord removed the kitchen island is dismissed. There is insufficient evidence to establish that the Landlord removed this island."
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