The Ontario Legislature enacted The Residential Tenancies Act, 1979, establishing the Residential Tenancy Commission to oversee and enforce landlord and tenant rights, including the power to make eviction and compliance orders.
The Executive Council referred questions to the Ontario Court of Appeal regarding the province's authority to grant these powers.
The Court of Appeal found the provisions ultra vires.
On appeal, the Supreme Court of Canada established a three-step test for determining whether a provincial grant of power violates section 96 of the British North America Act.
The Court concluded that the powers to order eviction and compliance were historically exercised by section 96 courts, remained judicial in their institutional setting, and were the central adjudicative function of the Commission rather than being ancillary to an administrative scheme.
The appeal was dismissed, and the provisions were held ultra vires.
