This appeal asks the Commission to
determine what the legal rent is and whether there should be a return of
rent for any overpayment of rent.
Background
On April 27, 2020, the Appellant,
Janet Sturgess ("Sturgess") purchased
assets from the Lower Montague Trailer Park Co-operative Ltd. (the
"Co-operative"), being the trailer park land (the "Property"). She states
she also purchased accounts
receivable owing to the Co-operative. At the time of purchase, there were 36
mobile home sites on the Property, 34 of which were occupied. One such site
was occupied by the Respondent, Terrance Trainor, Executor of the Estate of
Francis Trainor ("Trainor").
On June 9, 2020, Trainor filed with
the Director of Residential Rental Property (the "Director") a Form 13 �
Application by Lessee for Review of Proposed Rent Increase (the "Form 13
application") indicating:
"Rent was $100 per month when
owned by the Trailer Park Co-op. The park was sold as of May 1, 2020 to the
new owner. The
new owner charged $100 for May 2020 rent and sent an email to say that
effective Jun 1, 202 rent would be increased to $200 per month.
No formal Notice of Increase in Rent was received. On June
1, 2020, $200 was paid to the Lessor on threat of eviction."
On June 12, 2020, Trainor filed with
the Director a Form 2 � Application for Enforcement of Statutory of Other
Conditions of Rental Agreement seeking an Order than an amount found to be
owed be paid (the "Form 2 application").
Both matters were heard in two parts
by the Director on July 24 and July 29, 2020.
In Order LD20-204, dated August 11,
2020 (the "Order") the Director allowed Trainor's Form 2 application and
ordered Sturgess to pay Trainor $100.00 and set rent for the site at $100.00
per month until raised in accordance with the
Act.
In Order LD20-205, dated August 11,
2020 (the "Second Order") the Director dismissed Trainor's application.
The appeal was heard by the
Commission on October 8 2020. Sturgess appeared on her own behalf.
Trainor and Lori Trainor ("Mrs. Trainor") appeared on their own
behalf.
Appeals to the Commission under the
Rental of Residential Property Act
are re-hearings, as stated in
section 26(2). As such, the Commission considered the evidence that was
before the Director, as well as the materials filed and submissions made by
Sturgess and Trainor on appeal.
Disposition
The appeal is denied and Director's
Orders LD20-204 and LD20-205 are confirmed.
The Issues
The Commission will consider the
following questions in determining this appeal:
1.
What is the monthly rent?
2.
Should there be a return of rent?
What is the monthly rent?
Trainor paid $100.00 rent via
e-transfer to Sturgess for the month of May 2020.
The funds were accepted.
Sturgess then sent Trainor an email confirming receipt of the May 2020 rent
payment and advising that the rent was increasing to $200.00 per month
effective June 1, 2020. No
application for a rental increase was made.
No notice as required under the Act was provided to Trainor.
At the hearing before the
Commission, Sturgess made a lengthy argument (see Exhibit E-19).
Page 107 of the record contains an
email which is determinative of this mater:
Re: Trailer lot
rent - 50 Courtney Crescent
Vector Bio-Tech Solutions
[email redacted]
Sun 2020-05-03 8:51
PM
To:
Lori Trainor [email redacted]
Thank you Ms. Trainor. I am
aware you are up to
date - hence why no letter to 50 Courtney Crescent.
Thank you
I am giving notice though that
as of June 1st lot rent will be 200 per lot.
The May 3, 2020 email above is
clear. The rent paid for May,
which happened to be $100.00, was accepted and the account considered
up-to-date. This confirmed the rent as $100.00 per month. Sturgess aka
Vector Bio-Tech Solutions also gave "notice" that the rent would be $200.00
as of June 1, 2020.
There is no evidence that Sturgess
served a FORM 10 NOTICE OF INCREASE IN RENT OF RESIDENTIAL PREMISES on
Trainor. Nor is there any
evidence that Sturgess served and filed a FORM 12 APPLICATION BY LESSOR FOR
APPROVAL OF RENT INCREASE EXCEEDING PERCENTAGE ALLOWED BY REGULATION for
what amounts to a 100% increase in rent.
There is no evidence that a FORM 15 LESSOR'S STATEMENT OF INCOME AND
EXPENSES was served and filed.
There is no evidence that the Director held a hearing and ordered a 100%
rental increase for 50 Courtney Crescent.
Accordingly, Sturgess gave "notice"
to Trainor of a rental increase that was illegal under the
Act.
This "notice" was in no way a lawful notice required under the
Act.
Until such time as the requirements
of the Act have been fulfilled and any increase granted by the Director, the
monthly rent for 50 Courtney Crescent remains at $100.00.
Should there be a return of
rent?
On May 31, 2020, Trainor paid
$200.00 by e-transfer for the month of June 2020 to avoid receiving an
eviction notice (see page 45 of the record).
Trainor paid $200.00 by e-transfer for the month of July 2020 on June
29, 2020. Trainor paid $200.00
by e-transfer for the month of August on July 30, 2020.
Sturgess then sent $200.00 via e-transfer to Trainor.
The Director issued Order LD20204 and LD20-205 on August 11, 2020.
Trainor then proceeded to pay rent for September and October in the
amount of $100.00, both via e-transfer sent prior to the first day of the
month.
The Commission finds that there
should be a return of rent in the amount of $100.00 payable by Sturgess to
Trainor.
NOW THEREFORE,
pursuant to the
Island Regulatory and Appeals Commission
Act and the
Rental of Residential Property Act
IT IS ORDERED THAT
1.
The appeal is denied.
2.
Director's Orders
LD20-204 and LD20-205 are
confirmed.
DATED
at Charlottetown, Prince Edward Island,
this 16th day of October, 2020.
BY THE COMMISSION
:
Erin T. Mitchell, Panel Chair & Commissioner
M. Douglas Clow, Vice-Chair
NOTICE
Sections 26.(2), 26.(3), 26.(4)
and 26.(5) of the
Rental of Residential Property Act
provide as follows:
26.(2) A lessor or
lessee may, within fifteen days of the decision of the Commission,
appeal to the court on a question of law only.
(3) The rules of court governing appeals apply
to an appeal under subsection (2).
(4) Where the Commission has confirmed,
reversed or varied an order of the Director and no appeal has been taken
within the time specified in subsection (2), the lessor or lessee may
file the order in the court.
(5) Where an order is filed pursuant to
subsection (4), it may be enforced as if it were an order of the court.