Class action launched to halt illegal short-term condo rentals in midst of COVID-19 Pandemic

March 24, 2020

TORONTO, ON – March 24, 2020 – Today, Fairbnb Canada (“Fairbnb”) has brought a class action against a large condominium corporation and its property management company.

Fairbnb was one of the successful parties at recent Local Planning and Appeal Tribunal (“LPAT”) hearings which upheld City of Toronto by-laws prohibiting short-term rentals (“STRs”) other than for principal residences. These laws are now in force. The Defendants operate a condominium corporation that, it appears, with the knowledge and consent of the Defendants, is continuing to permit illegal STRs.

“The Owner and Property Manager have provided information asking STR operators to limit their activities. This appears to be negligent. The law has said since last year to stop these activities. The risk of short-term transients coming and going during a pandemic is obvious. All the claim is asking is for condominium corporations and property managers to follow the law,” said Eric Gillespie, Fairbnb’s legal counsel.

The statement of claim alleges that the Defendants are allowing such STRs to continue during a global COVID-19 pandemic. As a result, it asserts the Defendants are negligent. The claim alleges the Defendants are liable for damages of $2,000,000. The Defendants’ conduct is also sufficiently highhanded and callous so as to justify awards of aggravated as well as punitive and exemplary damages of a further $1,000,000.

This is not the only condominium that appears to tolerate illegal STR activities.

“This problem appears to be widespread,” said Thorben Wieditz of Fairbnb. “While the class action initially only names two properties, we are making the claim available on our website at https://www.fairbnb.ca/. Every condo resident in Toronto that is concerned should forward a copy to their management office and ask them to follow the law.”

– 30 –

For more information, please contact:
Thorben Wieditz at 647-409-8997 or fairbnb@fairbnb.ca
Eric Gillespie at 416-436-7473 or egillespie@gillespielaw.ca

Support our campaign

Are you concerned about ghost hotels, disruptive short-term rentals or the loss of affordable housing stock in your neighbourhood? Join our campaign and become a supporter of the coalition.

I'm in.