Ontario Bans Commercial Evictions During COVID-19: Seven Things You Need to Know

Nick P. Poon, B.Sc. (Hons.), B.A., J.D.Business Disputes, Commercial, Commercial and Contract Litigation, Commercial Contracts, Commercial Leasing, Commercial List Matters, Commercial Litigation, Contract Disputes, Contract Termination, Coronavirus, COVID-19, Shopping Mall Lease Disputes, Shopping Mall Lease Litigation0 Comments

As predicted in our previous blog, B.C. Bans Evictions if Commercial Landlords Fail to Apply to CECRA: A Similar Ban Coming to Ontario?, the Ontario Government announced yesterday that it had passed legislation to protect commercial tenants from evictions and having their assets seized by their landlord during COVID-19. After British Columbia, Alberta and Saskatchewan took steps in the last two weeks to protect small business tenants from landlords that choose not to apply for the Canada Emergency Commercial Rent Assistance (CECRA) program, Ontario Premier Doug Ford finally followed through on his promise to protect small business tenants during COVID-19. On June 18, 2020, Bill 192,  Protecting Small Business Act, 2020 (the “Act”) received Royal Assent, and officially amended the Commercial Tenancies Act to prohibit landlords, that are or would be eligible to receive assistance under the CECRA program, from evicting tenants or exercising distress remedies in the period from … Read More

B.C. Bans Evictions if Commercial Landlords Fail to Apply to CECRA: A Similar Ban Coming to Ontario?

Nick P. Poon, B.Sc. (Hons.), B.A., J.D.Business Disputes, Civil Litigation, Commercial and Contract Litigation, Commercial Contracts, Commercial Leasing, Commercial Litigation, Contract Disputes, Contract Termination, Coronavirus, COVID-19, Real Estate Litigation, Shopping Mall Lease Disputes, Shopping Mall Lease Litigation0 Comments

Although the Canada Emergency Commercial Rent Assistance Program (CECRA) opened for applications last week, complaints about the program have continued from both small business tenants and commercial landlords. Small business tenants have complained that landlords continue to refuse to apply to CECRA, the eligibility requirement for a revenue loss of at least 70 percent was too high and the number of months of relief should be expanded.  Today, Ontario extended the state of emergency until June 30, 2020 although Premier Doug Ford stressed that the gradual and safe re-opening of the economy would continue.  It is unlikely most eligible tenants will be able to make their full rent payment on July 1, 2020, even if they receive rent relief for the months of April, May and June, 2020 under CECRA.  Landlords have complained that the application process is too confusing, costly, time-consuming and risky.  Under CECRA, landlords are required complete … Read More

Commercial Leases and Relief From Forfeiture: A Second Chance For Tenants During COVID-19?

Nick P. Poon, B.Sc. (Hons.), B.A., J.D.Business Disputes, Commercial, Commercial and Contract Litigation, Commercial Contracts, Commercial Leasing, Commercial Litigation, Contract Disputes, Contract Termination, Real Estate Litigation, Shopping Mall Lease Disputes, Shopping Mall Lease Litigation0 Comments

Today is the first day landlords can apply for the Canada Emergency Commercial Rent Assistance Program (CECRA) as reported in our blog last week entitled COVID-19 | Ontario-Canada Emergency Rent Assistance Program – Part 2. Although commercial rent relief is now finally available for the months of April, May and June 2020, it has been over two months since non-essential businesses in Ontario were required to close.  The gradual re-opening of some non-essential businesses, under strict guidelines, was only announced over the last few weeks.  According to a recent survey by CFIB, 48% of Ontario small businesses suffered a drop in revenue of 70% or more, and 77% of Ontario small businesses suffered a drop in revenue of 30% or more.  It is highly unlikely that these small businesses will survive the COVID-19 pandemic without further assistance. In addition, it has been widely reported that some commercial landlords will not … Read More

COVID-19 | Ontario-Canada Emergency Commercial Rent Assistance Program – Part 2

Nick P. Poon, B.Sc. (Hons.), B.A., J.D.Business Disputes, Commercial, Commercial and Contract Litigation, Commercial Contracts, Commercial Lease Arbitrator, Commercial Leasing, Commercial Litigation, Contract Disputes, Contract Termination, Coronavirus, COVID-19, Shopping Mall Lease Disputes, Shopping Mall Lease Litigation0 Comments

Further to our blog entitled COVID-19 | Ontario-Canada Emergency Commercial Rent Assistance Program, CMHC has finally released further details about the OCECRA program including the opening date of the applications portal on May 25, 2020 at 8:00 a.m. EST. Amidst reports that many landlords were refusing to apply for the OCECRA program, Premier Doug Ford pleaded with landlords to participate in the OCECRA program, stating: “It is not going to be forever.  It is going to be for a few months.  Help people out.  You have an obligation to do that as a landlord”.  Prime Minister Justin Trudeau provided a more business-oriented argument for landlords to participate in the OCECRA program, stating: “With many people discovering that we can work from home … there may be a lot of vacancies in commercial buildings over the coming months and years.  Who knows exactly what the post-pandemic world will look like exactly?”. … Read More

COVID-19 | Ontario Announces More Businesses to Reopen During First Stage

Nick P. Poon, B.Sc. (Hons.), B.A., J.D.Business Disputes, Business Interruption, Civil Litigation, Commercial Contracts, Commercial Leasing, Contract Disputes, Contract Termination, Coronavirus, COVID-19, Debt and Enforcing Judgments, Event Cancellation, Event Termination, Real Estate Litigation, Retail Litigation, Shopping Mall Lease Disputes, Shopping Mall Lease Litigation0 Comments

Following on our previous blog last week entitled COVID-19 | Ontario Allows More Businesses To Reopen Soon, the Ontario government announced today plans for stage 1 to reopen the province, including allowing more businesses to reopen and/or relaxing restrictions on the delivery of goods and services. While the reopening of more businesses is welcome news after eight weeks in quarantine, Premier Doug Ford warned that individuals must still continue to practice social and physical distancing, and businesses should only reopen if they are ready to comply with the strict public health guidelines.  We cannot risk moving one step forward, but moving two steps back. The following is a list of some businesses that may reopen or expand their services on the following dates: May 16, 2020  Golf courses may open to the public but clubhouses only for washroom access and restaurants only for take-out (previously, golf courses could only prepare … Read More

COVID-19 | Ontario Allows More Businesses To Reopen Soon

Nick P. Poon, B.Sc. (Hons.), B.A., J.D.Business Disputes, Business Interruption, Commercial and Contract Litigation, Commercial Leasing, Construction | Builders, Contract Termination, Coronavirus, COVID-19, Creditors Rights, Debt and Enforcing Judgments, Event Cancellation, Event Termination, Force Majeure, Franchise Law, Real Estate Litigation, Retail Litigation, Shopping Mall Lease Disputes, Shopping Mall Lease Litigation0 Comments

Following on the Ontario government’s announcement last week allowing a select few businesses to re-open earlier this week, there was another announcement yesterday allowing more businesses to re-open under the same strict public and health safety guidelines. The following is a list of businesses that may re-open, and their scheduled re-opening dates over the next week: May 8, 2020:  Garden centres and nurseries can re-open for in-store payment and purchases (previously, these businesses could only offer curbside pick-up and delivery); May 9, 2020:  Hardware stores and safety supply stores can re-open for in-store payment and purchases (previously, these businesses could only offer curbside pick-up and delivery);  May 11, 2020:  Retail stores with street entrances can re-open but they can only offer curbside pick-up and delivery (previously, non-essential businesses were required to be closed). Small businesses that are planning to re-open are reminded to follow public and health safety guidelines including The … Read More

COVID-19 | Ontario to Permit Some Businesses to Reopen on May 4

Nick P. Poon, B.Sc. (Hons.), B.A., J.D.Business Disputes, Business Interruption, Business Litigation, Civil Litigation, Commercial and Contract Litigation, Commercial Leasing, Contract Disputes, Contract Termination, Coronavirus, COVID-19, Event Cancellation, Event Termination, Force Majeure, Government Action, Loan and Guarantee, Mortgage Enforcement, Mortgage Litigation, Real Estate Litigation, Retail Litigation, Shopping Mall Lease Disputes, Shopping Mall Lease Litigation0 Comments

On May 1, 2020, the Ontario government announced that a select few businesses will be allowed to re-open on Monday, May 4, 2020 but with strict public health and safety measures in place.  Most of these businesses are seasonal businesses and some essential construction projects. This announcement follows from the release earlier this week of the three-staged Framework for Reopening our Province which included stage 1 to reopen certain Ontario businesses gradually under strict guidelines in order to allow the economy to return to some sense of normalcy while continuing to safeguard the public and limit health risks. The following is the list of businesses that may be re-opened on May 4, 2020: Garden centres and nurseries – but they are restricted to alternative methods of sale such as curbside pickup and delivery; Lawn care services and landscaping services; Essential construction projects including shipping and logistics; broadband, telecommunications and digital … Read More

A Guide to Urgent Residential Eviction Orders and Enforcement During COVID-19

Nick P. Poon, B.Sc. (Hons.), B.A., J.D.Building | Property Management, Civil Litigation, Commercial Leasing, Contract Disputes, Contract Termination, Coronavirus, COVID-19, Debt and Enforcing Judgments, Real Estate Litigation0 Comments

On March 19, 2020, the Ontario Superior Court of Justice suspended the eviction of residents from their homes, pursuant to eviction orders issued by the Landlord and Tenant Board or writs of possession, during the COVID-19 pandemic, unless ordered otherwise in an urgent motion. On the same day, the Landlord and Tenant Board suspended all hearings related to eviction applications and suspended the issuance of eviction orders, unless the matter related to an urgent issue such as an illegal act or a serious safety threat. Urgent Eviction Order or Urgent Enforcement? 1.  If the landlord requires an urgent eviction order, then the landlord should proceed to file an urgent application with the Landlord and Tenant Board. 2.  If the landlord already has an eviction order (or writ of possession) and requires urgent enforcement, then an urgent motion should be made to the Superior Court of Justice under Rule 60.17 of … Read More

COVID-19 | Ontario-Canada Emergency Commercial Rent Assistance Program

Nick P. Poon, B.Sc. (Hons.), B.A., J.D.Business Disputes, Commercial and Contract Litigation, Commercial Lease Arbitrator, Commercial Leasing, Commercial Litigation, Contract Disputes, Contract Termination, Coronavirus, COVID-19, Shopping Mall Lease Disputes, Shopping Mall Lease Litigation0 Comments

On April 16, 2020, the Federal government announced the Canada Emergency Commercial Rent Assistance Program (CECRA) but could not provide further details because discussions with the provinces and territories were required for the administration and implementation of the program. Today, the Ontario government announced the Ontario-Canada Emergency Commercial Rent Assistance Program (OCECRA) and provided further details on the eligibility requirements and the terms of the forgiveable loan.  The OCECRA is expected to be operational in mid-May 2020, and will provide commercial rent relief for the months of April and May (retroactively) and June 2020. We summarize the OCECRA as follows: Ontario-Canada Emergency Commercial Rent Assistance Program – Updated May 7, 2020 What is the purpose of OCECRA?  To provide relief to landlords and small business tenants affected by COVID-19 by providing forgivable loans to landlords to cover 50% of the gross monthly rent for April, May and June 2020. Who … Read More

COVID-19 / Coronavirus: Rent Relief for Small Businesses Is Coming

Nick P. Poon, B.Sc. (Hons.), B.A., J.D.Business Interruption, Business Litigation, Civil Litigation, Commercial and Contract Litigation, Commercial Arbitrator, Commercial Contracts, Commercial Law, Commercial Lease Arbitrator, Commercial Leasing, Commercial List Matters, Commercial Litigation, Contract Disputes, Contract Termination, Coronavirus, COVID-19, Real Estate Litigation0 Comments

On April 16, 2020, the Federal government announced the Canada Emergency Commercial Rent Assistance (CECRA) program to assist small businesses with their rent payments during the COVID-19 crisis. The CECRA program will provide loans and/or forgiveable loans to commercial property owners who will be expected to pass on the benefit to small businesses by lowering or forgoing rent for April (retroactively), May and June 2020.  Further details of the program are expected to be released soon and the program will be administered by the provincial and territorial governments. Although the Ontario Superior Court of Justice had issued an Order on March 19, 2020 suspending the eviction of residents from their homes (unless ordered otherwise under an urgent motion), there was no similar protection against evictions for commercial tenants which included many small business owners. Commercial rent payments are typically the second largest operating expense for most small businesses after payroll … Read More

Small Business Relief Resources During COVID-19 / Coronavirus

Nick P. Poon, B.Sc. (Hons.), B.A., J.D.Business Disputes, Business Interruption, Civil Litigation, Commercial, Commercial and Contract Litigation, Commercial Contracts, Commercial Leasing, Commercial Lending, Commercial Litigation, Contract Disputes, Contract Termination, Coronavirus, COVID-19, Creditors Rights, Debt and Enforcing Judgments, Distribution Agreements, Event Cancellation, Event Termination, Force Majeure, Franchise | Licensing, Government Action, Loan and Guarantee, Mortgage Enforcement, Mortgage Litigation, Real Estate Litigation, Retail Disputes, Retail Litigation, Shopping Mall Lease Disputes, Shopping Mall Lease Litigation0 Comments

On April 14, 2020, the Ontario legislature passed a bill during an emergency sitting to extend the state of emergency to May 12, 2020. The state of emergency in Ontario was initially declared on March 17, 2020, and subsequently extended to April 14, 2020.  Under the Emergency Management and Civil Protection Act, any further extensions must be passed by the legislature, and can only be extended for additional periods of no more than 28 days.  On May 12, 2020, the state of emergency was extended to June 2, 2020 (Updated: May 12, 2020). Although the extension of the state of emergency does not automatically apply to individual orders such as the closure of non-essential businesses, it is expected the mandatory closure of non-essential businesses will be extended as well to combat the COVID-19 pandemic.  In addition, many small businesses (deemed essential) have voluntarily closed due to safety concerns for their … Read More