JUSTICE DELAYED IS JUSTICE DENIED

Tahir Khorasanee, LL.M. Senior Associate, Steinbergs LLP The adage "justice delayed is justice denied" rings true, but beyond notions of fairness lies a realm of profound economic implications. Nowhere is this more apparent than in the Landlord and Tenant Board, where adjournments and delays can wield significant impact, particularly upon small-scale landlords, especially amid periods of heightened interest rates, inflation, and economic downturns. Ever wondered about the true cost of delays in our justice system? Brace yourself, because it's not just a matter of time. Picture this: almost half of all Canadians, over 18, find themselves tangled in at least one legal snafu within a mere three-year span. Despite this, many of us feel like strangers to the legal labyrinth, left out in the cold. But here's the kicker: legal hiccups are inevitable—they'll knock on your door sooner or later. And let me tell you, they come with a hefty price tag. These legal tangles don't just drain our wallets; they put a strain on our entire economy. Take, for instance, the chilling fact that every extra year spent resolving private disputes can send our growth rate spiraling downwards. So, when it comes to the cost of legal delays, it's not just a number—it's the very pulse of our economy that's at stake. Enter the Landlord and Tenant Board of Ontario, tasked with arbitrating disputes between property owners and tenants—an institution marred by excruciatingly prolonged delays. A recent ombudsman report laid bare the staggering backlog of over 38,000 pending cases, with landlords lodging nearly 90% of the grievances. These delays wield dire consequences, particularly for small-scale landlords. Small landlords, often owning just one or two rental properties, can be particularly affected by these delays. When tenants fail to pay rent or violate lease agreements, landlords must turn to the Landlord and Tenant Board for resolution. However, the long waiting times for hearings can lead to significant financial strain for landlords. For instance, one landlord reported that his tenants paid the first and last month’s rent to move in and immediately refused to pay rent, demanding cash for keys. Another reported becoming homeless so she could continue to pay the mortgage as her tenants refused to pay rent. There are numerous other stories of tenants destroying the landlord’s property, making it inhabitable, while the Landlord and Tenant Board continued to grant these tenants more time. Once the Landlord and Tenant Board makes an order for eviction and unpaid rent, which is often done after several attendances and significant delays, that is not the end of the road for the landlord, who must then pay additional legal and administrative fees to request the Sherif’s office to evict the tenant and later, pay additional legal and court fees to enforce the judgement at the Small Claims Court. In essence, the burden of tackling the housing crisis is disproportionately shouldered by small landlords—individuals who invest a lifetime's savings in pursuit of a modest retirement strategy. This predicament is further exacerbated during periods of economic turbulence, where soaring interest rates and inflation inflate borrowing and living costs, exacerbating financial strain. It seems the current landlord and tenant regime downloads the responsibility of addressing the housing crisis on the small landlord, who spends a lifetime scrouging to save just enough to purchase an investment property as part of his retirement strategy. This situation is exacerbated in times of high interest rates and inflation. These economic conditions increase the cost of borrowing and the cost of living, putting additional financial pressure on small landlords. For most landlords, the Landlord and Tenant Tribunal only exasperates the problem. The Tribunal takes far too long to evict tenants who refuse to pay rent, destroy the property in the process, and refuse to leave without being paid a hefty sum. Something must be done about this – perhaps a good start will be if all landlords refuse to pay cash for keys and go the distance, getting an order for eviction and unpaid rent and later enforcing it in court to make sure the tenants pays their dues. This may be the catalyst needed for meaningful reform, which is long overdue. In a time of economic recession, the impact of justice delays at the Landlord and Tenant Board is more pronounced. It is crucial to address these delays to support small landlords who are an integral part of the housing market and the broader economy. As we navigate these challenging economic times, ensuring timely access to justice is not just a matter of fairness – it is an economic imperative.