Municipal Newsletter – September 2024

Municipal Newsletter – September 2024

Posted October 3, 2024 Category: News & Updates
Provincial Planning Statement to Come into Force in October 2024

On August 20, 2024, the Ontario Government announced the Provincial Planning Statement (PPS), 2024. The 2024 PPS will replace the Provincial Policy Statement, 2020 and the Growth Plan for the Greater Golden Horseshoe. The 2024 PPS is expected to come into force on October 20, 2024, although the Province is currently considering whether it should implement a transition period wherein the 2020 PPS would continue to apply to some planning decisions.

As a result of these changes, land use planning decisions made on October 20, 2024 or following must be consistent with the 2024 PPS. Planning authorities should be sure to familiarize themselves with the new document and be aware of the changes therein.

Changes include a simplified and more flexible process for expanding settlement boundaries, clarifications around “affordable” housing, and requirements to establish minimum targets for intensification and development within built-up areas.

Municipality Held Liable for Structure Built on Wrong Property

Armstrong, et al. v Penny, et al., 2023 ONSC 2843

The Ontario Superior Court of Justice recently held a municipality liable for failing to prevent a homeowner from building on their neighbour’s property.

The homeowner mistakenly built a garage on their neighbour’s property. The neighbour sued the homeowner for trespass, and the homeowner in turn brought a claim in negligence against the City of Kawartha Lakes for failing to prevent her from building outside her property lines. The court agreed the City was negligent for failing to notice that the garage was built in the wrong location.
An important part of the court’s reasons was that the City’s Building By-Law required the homeowner to submit a survey along with her application. The City failed to enforce this requirement and, during multiple building inspections, failed to notice that the building was being constructed in the wrong location.

In rejecting the argument that it was the homeowner’s sole responsibility to ensure the garage was correctly sited, the court wrote: “a reasonable municipality should act in a timely and diligent fashion so as not to allow a house to be built on the wrong property… ensuring that a structure is built on the correct property is one of the most basic required functions of the municipality. Surely, this is not asking too much.”

Following this decision, municipalities should ensure that their review of planning applications and building permit applications includes reasonable steps to confirm the location of the proposed development. During inspections, building inspectors should make reasonable efforts to confirm construction is in accordance with the approved plans. And where a municipal by-law or policy says that a survey will be required, the municipality should ensure it enforces this requirement.

It Pays to Enforce Municipal By – Laws

Metro Taxi Ltd. et al. v. City of Ottawa, 2024 ONSC 2725 (CanLII)

A recent Ontario Superior Court of Justice decision demonstrates the value in enforcing municipal bylaws. Metro Taxi Ltd., an Ottawa based taxi company, was the representative Plaintiff in a class action against the City of Ottawa for compensation for losses suffered by taxi businesses following the entry of Uber in 2014.

The Plaintiffs alleged that the City of Ottawa was negligent in enforcing its 2012 By-law which addressed the licensing, regulating and governing of taxis by allowing Uber drivers to operate without licenses from 2014 to 2016. In 2016, a By-law was passed governing vehicles-for-hire.
The Court determined that the City was negligent in enforcing the 2012 By-law. Specifically, the Court found that:

 

  • Between October 3, 2014, and September 30, 2016, no charges were laid against Uber for dispatching a taxicab within the regulated area without a valid taxicab broker license.
  • The City did not issue an order against Uber under s. 444 of the Municipal Act, 2001
  • Between October 3, 2014, and September 30, 2016, the City of Ottawa did not seek an injunction against Uber drivers or Uber pursuant to s. 440 of the Municipal Act.

According to the Court, the City of Ottawa failed to plan for Uber’s inevitable entrance to the market and inadequately enforced its 2012 bylaw against Uber. The determination of damages is still to come.
The main takeaway for municipalities is that it pays to enforce By-laws. As well as having a deterrent effect, municipal enforcement may protect against future liability in negligence.

 

Significant Fines Imposed For Fire Code Breaches

Cunningham Swan recently assisted a municipality in obtaining penalties of more than $40,000 against a corporate landlord for breaches of the Fire Code and Fire Protection and Prevention Act. 

The corporation owned a large complex which it leased to commercial and residential tenants. A fire broke out in a commercial laboratory, believed to be caused by the spontaneous combustion of fuels. During the emergency response, firefighters encountered multiple Fire Code breaches including non-functioning fire alarms, fire hydrants disconnected from their water supply, and a lack of second exits from a residential floor. The corporation was also charged with failing to prevent the commercial tenant from engaging in a hazardous activity, and for later failing to comply with Fire Code orders.

At sentencing, the court took into account that the corporation had accepted responsibility by pleading guilty and had spent significant funds bringing the building into compliance, but concluded that a significant penalty was necessary to deter other landlords from shirking their duties under the Fire Code. The court accordingly imposed the penalties recommended by the prosecution, which totaled $33,000, plus victim fine surcharges of approximately $8,000.

Please note that Cunningham Swan updates are for educational purposes only, not to provide specific legal advice. Should you have any questions or require legal advice, please do not hesitate to contact us by phone at 613-544-0211 or by email at [email protected].

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Posted October 3, 2024 Category: News & Updates

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