Municipal Property Assessment Corporation ("MPAC") Region 19 v. 58 King East Properties Inc., 2018 CanLII 104597

Assessment Review Board

Commission de révision de l’évaluation foncière

ISSUE DATE: October 30, 2018

FILE NO.: DM 155393

Moving Party(ies): Municipal Property Assessment Corporation (“MPAC”) Region 19

Respondent(s): 58 King East Properties Inc.

Respondent(s): City of Hamilton

Property Location(s): 58-60 King Street East

Municipality(ies): City of Hamilton

Roll Number(s): 2518-020-151-50280-0000

Appeal Number(s): 3310173 and 3235087

Taxation Year(s): 2017 and 2018

Hearing Event No.: 703065

Legislative Authority: Rule 24(e) of the Assessment Review Board Rules of Practice and Procedure

Heard: By written submission

APPEARANCES:

Parties	Representative
MPAC	Michael Radan
58 King East Properties Inc.	No one appeared
City of Hamilton	No one appeared

DISPOSITION OF THE BOARD DELIVERED BY SCOTT McANSH

1MPAC seeks to have these appeals dismissed because 58 King East Properties Inc. (the “Company”) did not serve a statement of issues on or before the date specified by the Assessment Review Board (the “Board). Neither the Company, nor the City of Hamilton (the “City”), made any submissions on this motion, despite being served with notice.

2For the reasons that follow, the appeals are dismissed for non-compliance with the Board’s Rules of Practice and Procedure (the “Rules”).

Background

3The Company is the former owner of the property located at 58-60 King Street East in the City of Hamilton. It sold the property in December 2017, but filed an appeal of the property’s assessment for the 2017 taxation year before it did so. It was deemed to have appealed the 2018 assessment as well, pursuant to subsection 40(26) of the Assessment Act, R.S.O. 1990, c. A.31 (the “Act”).

4The Board assigned a commencement date of November 15, 2017 to these appeals, pursuant to Rule 33. MPAC sent its initial disclosure to the other parties on December 4, 2017, in compliance with the Rules. The next step in the litigation was for the Company to serve a statement of issues on or before April 12, 2018. It did not do so.

5MPAC requested the Company’s statement of issues on May 8, 2018 and reminded the Company of its obligations under the Rules. That same day, the Company responded to MPAC informing it of the December 2017 sale. MPAC first sought dismissal of these appeals by way of an Expedited Board Directions Form, on June 7, 2018. The Board set this motion, and provided filing dates for all parties, on July 19, 2018.

Dismissal

6MPAC puts forward two main theories on the legal basis for dismissing these appeals. First, they argue that the requirement to serve a statement of issues is a request by the Board for information, so the Company’s failure to comply is grounds for a dismissal. Their second argument is that Company has not complied with the Rules, and that the appeals should be dismissed on that basis. I do not accept that a statement of issues is a request for information. I do, however, find that the Company is in breach of the Rules in a clear, egregious, and unilateral way. I therefore dismiss the appeals.

Providing Information

7Rule 24(d) permits a Member of the Board to “dismiss an appeal without holding a hearing event… if… the appellant has not responded to a request by the Board for further information within the time specified by the Board.” MPAC argues that in setting the date on which the Company was to serve its statement of issues the Board was requesting information from the Company. I do not accept that assertion.

8The requirement in Schedule A of the Rules is that the Company provide “its disclosure and Statement of Issues to all other parties.” Those documents do not need to be provided to the Board until far later in the appeal process. It is difficult to see a requirement to send documents to other people as a request for information by the Board.

9This Board recently explained the policy rationale for Rule 24(d) in Municipal Property Assessment Corporation, Region No 7 v Cherry, 2018 CanLII 60392 (ON ARB) (“Cherry”). The Board held, at paragraph 8, that the Rule “is aimed at direct requests for information by the Board, such as contemplated in Rule 21.” That is, the Rule permits dismissal when the Board makes specific requests from specific parties. The schedule of events due dates are set by the Rules, and are properly addressed through Rule 24(e).

Failure to Comply

10Rule 24(e) permits dismissal without a hearing if “the appellant has not complied with statutory requirements or these Rules.” This Board held, in Municipal Property Assessment Corporation, Region No. 9 v 234900 Ontario Ltd., 2018 CanLII 248 (ON ARB), 2017 CanLII 74719 (ON ARB) at paragraph 8, that dismissal “is an extreme remedy and should only be granted in the clearest of cases.” The Board stated, in Cherry at paragraph 10, that the “clearest of cases are those where there are willful breaches of the Board’s orders or Rules that are entirely attributable to the taxpayer.”

11A party’s failure to provide a statement of issues when required can be valid basis for dismissal, see 505896 Ontario Limited v Municipal Property Assessment Corporation, 2016 CanLII 2574 (ON ARB). The failure of the Company to provide a statement of issues by April 11, 2018 was a breach that is entirely attributable to the Company. The Company has not cured that breach. However, that is not enough to ground a dismissal. This Board held in Municipal Property Assessment Corporation, Region 14 v Upper Keele Inc., 2018 CanLII 126632 (ON ARB), 2018 CanLII 248 (ON ARB) at paragraph 10, that the “prejudice to each party will always be the primary consideration on a dismissal motion.”

12MPAC argues that it is prejudiced by the Company’s breach of the Rules both in the expense it has incurred in pursuing this motion and in how much more difficult it is to meet its other obligations when appellants fail to comply with the Rules. MPAC provided evidence that it spent many hours on this motion, and its materials show that it spent some time in preparation. I also accept MPAC’s assertion that a failure of an appellant to provide a timely statement of issues makes its overall case management more difficult. It cannot provide a response when there is no statement of issues, and must take some steps to see if a statement of issues is likely. I accept that there is prejudice to MPAC flowing from the Company’s failure to provide a statement of issues.

13MPAC also argues that the City is prejudiced by the Company’s failure to provide a statement of issues. The City was provided notice of this motion and did not file any material. I am not willing to infer prejudice without any direct evidence. I do not, therefore, find any prejudice to the City.

CONCLUSION

14MPAC’s motion to dismiss the Company’s appeals is granted. The Company is in breach of the Rules and that breach is entirely attributable to the Company. MPAC is prejudiced by the Company’s breach. I therefore dismiss the 2017 and 2018 appeals filed by the Company.