When an Ontario landlord files an AGI application based on capital expenditures, the matter may not proceed directly to a hearing. There is another important stage in the process: the Case Management Hearing.
Above Guideline Rent Increase (AGI), the matter may not proceed directly to a hearing before an adjudicator.
There is another important stage in the process: the Case Management Hearing (CMH).
For AGI applications involving capital expenditures, a CMH forms an important part of the Landlord and Tenant Board (LTB) process.
What Is a Case Management Hearing?
A Case Management Hearing is conducted by a Dispute Resolution Officer (DRO) rather than an LTB adjudicator deciding the merits of the application.
The purpose is different from the eventual hearing.
The CMH provides an opportunity to identify the issues in dispute, address procedural matters and explore whether some—or potentially all—of the application can be resolved without proceeding to a contested hearing.
For landlords, this means the CMH should not be treated as simply an administrative appointment.
Attendance Matters
There can be significant consequences when a party fails to participate in a scheduled CMH.
If the landlord fails to attend, the AGI application may be dismissed as abandoned.
A tenant’s failure to attend can also have consequences for that tenant’s continued participation in the proceeding.
Simply put, a Case Management Hearing matters.
Can an AGI Be Settled?
Yes.
One of the important functions of the CMH is to give the parties an opportunity to discuss resolution with the assistance of the DRO.
Depending on the circumstances, the parties may be able to resolve particular issues or the entire AGI application.
Where an appropriate resolution is reached, the matter may result in a consent order or mediated agreement rather than continuing through a fully contested hearing.
However, AGI settlements operate within a statutory framework. There are restrictions on what can be agreed upon and requirements that may apply to the resulting terms or order.
A settlement should therefore be considered in the context of the landlord’s overall AGI claim—not simply as a way to avoid a hearing.
Why Preparation Before the CMH Matters
By the time a landlord attends a Case Management Hearing, the application has already moved beyond simply determining whether a capital expenditure might qualify.
The landlord should understand the application being advanced, the evidence supporting it, the issues that may be disputed and the implications of any proposed resolution.
This can become particularly important in a large multi-unit property where an agreement reached in the proceeding may affect tenants beyond those actively participating in the CMH.
An AGI Is a Process, Not Just an Application
The progression from application, to disclosure, to Case Management Hearing, and potentially to a contested hearing illustrates why an AGI is more than filing an L5 form.
Each stage can create different procedural and strategic considerations.
For landlords pursuing recovery of substantial capital expenditures, preparation should therefore extend beyond completing the application itself.
Considering an AGI?
Gobin & Leyenson LLP assists Ontario residential landlords with the assessment, preparation, negotiation and representation of Above Guideline Rent Increase applications before the Landlord and Tenant Board.
This article provides general information only and does not constitute legal advice. The procedures and potential outcomes of an AGI proceeding depend on the circumstances of the application and applicable law.
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Written by
AGI Paralegal
AGI Paralegal is the above-guideline rent increase practice of Gobin & Leyenson LLP, assisting Ontario residential landlords with the assessment, preparation and representation of AGI applications before the Landlord and Tenant Board.