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Landlords' Own Use - Corporation (Landlord 1406393 Ontario Inc.)

ACTO appeared before the Court of Appeal in October in the matter of a shareholder of a corporate landlord trying to evict a tenant pursuant to the landlord’s own use eviction provision of the Residential Tenancies Act. ACTO’s position was that the section is intended to be used only by natural persons and not corporate ones. It is a no-fault ground for eviction and as such, it is a significant exception to the security of tenure provisions of the RTA that should be interpreted restrictively and narrowly. As well, the plain meaning of the section and the remedial purpose of the legislation are consistent with this interpretation.

The Court of Appeal decided that the expansive definition of “landlord” in the RTA and a section requiring consideration of the “real substance” of transactions allowed a sole shareholder of a corporation to be a “landlord” for the purposes of a landlord’s own use eviction. While this decision means that our client’s tenancy is ended, it could assist other tenants to bring claims against the real people who are hiding behind landlord corporations and trusts.