Sandringham Place Inc. v. Ontario (Human Rights Commission)

[2001] O.J. No. 2733 | Divisional Court (Maloney, B. Wright & Gillese JJ.)

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The Ontario Human Rights Commission referred year-old discrimination complaints against our client to a Board of Inquiry. The OHRC’s reason for declining to dismiss those complaints under s. 34(1)(d) ignored the three statutory factors and relied on an extraneous consideration. The Divisional Court quashed the decision as patently unreasonable.

The Commercial Problem

Our client, Sandringham Place Inc., is the developer of a residential subdivision in Brampton, Ontario. A restrictive covenant registered on title to all the lots in the development required that each house be used “for the use of one household only in each dwelling unit” and not for “business of any description.”

A property in the development changed hands twice and was eventually leased by its owners (the Duchamps) to the Brampton Children’s Residential Services for use as a group home. The lessors then refused to honour the lease, citing the restrictive covenant. The Brampton Children’s Residential Services and two of its directors filed complaints with the Ontario Human Rights Commission in August 1995, alleging discrimination on the basis of handicap and family status. The complaints were filed approximately one year after the complainants had been notified of the restrictive covenant.

The OHRC investigated for nearly five years. In June 2000, it sent a case analysis to the parties. Sandringham’s submissions in response — the first time it requested that the OHRC exercise its discretion under s. 34(1)(d) of the Human Rights Code to decline to deal with complaints filed more than six months after the underlying acts — arrived in July 2000. The OHRC declined to exercise its discretion in a three-sentence decision dated August 31, 2000, and referred the complaints to a Board of Inquiry.

The commercial problem was structural, not substantive. By the time the OHRC referred the matter to a Board of Inquiry, six years had elapsed since the underlying events. A full Board of Inquiry hearing was scheduled for October 2001. The cost of defending an Ontario Human Rights Code Board of Inquiry hearing on a six-year-old fact pattern is high, and the result — even if Sandringham prevailed — would arrive long after the practical opportunity to address the matter had passed. The question was whether the OHRC’s s. 34(1)(d) decision could be challenged on judicial review at the Divisional Court before the Board of Inquiry consumed further resources.

Strategic Decisions

Decision 1: Defeat the OHRC’s threshold “not reviewable” argument before reaching the merits

The OHRC’s gateway argument was that decisions made under s. 34(1)(d) of the Human Rights Code are not amenable to judicial review — that the Commission has plenary discretion whether to even consider exercising the section. If that argument carried, the entire JR application would have collapsed before any analysis of the underlying decision.

We anchored on first principles: a decision not to do something is a decision; statutorily-conferred discretion must be exercised in accordance with the principles that govern the exercise of any such discretion; and judicial review of statutorily-conferred discretion is the foundational case in Canadian administrative law since Roncarelli v. Duplessis, [1959] S.C.R. 121. The Divisional Court adopted that framing directly (para. 12): “A decision not to do something is a decision, just as is a decision to do something.” The threshold argument fell.

Decision 2: Frame the merits as “irrelevant considerations,” not as a substantive disagreement with the OHRC

The temptation in JR is to attack the underlying decision’s substance. We did the opposite. We anchored on what s. 34(1)(d) actually requires the OHRC to consider:

  1. whether the facts complained of occurred more than six months before filing;
  2. whether the delay was incurred in good faith; and
  3. whether substantial prejudice will result.

The OHRC’s entire stated reason for declining to exercise its discretion was that “the request arrived after the Commission had completed the exercise of its investigative powers” — a procedural / administrative consideration about how far along the investigation had gone, not about any of the three statutory factors. We argued this was the textbook Roncarelli error: the OHRC fettered its discretion by relying on an irrelevant consideration and failed to consider the relevant considerations the statute requires. The Divisional Court adopted that framing in full (paras. 14–15). Once framed this way, the OHRC’s three-sentence decision was self-disqualifying.

Decision 3: Build a parallel procedural fairness ground — do not rely on a single arrow

Patent unreasonableness was our lead argument. But JR applications often fail on a single ground; building two independent grounds is materially safer. We invested in discovery to identify what was actually in front of the OHRC when it made its decision. The Divisional Court ultimately confirmed (paras. 18–19) that the OHRC had information relevant to its discretion that it never disclosed to Sandringham — including information bearing on the very “good faith” and “prejudice” questions the statute required it to consider.

That gave us a second independent ground: even if the patent-unreasonableness analysis had not carried, the procedural fairness breach (failure to give Sandringham notice of the case it had to meet) was a winning ground on its own. The court raised this concern of its own motion: “Sandringham must be given sufficient information that it has a meaningful opportunity to make submissions in relation to the exercise of discretion pursuant to s. 34(1).” Two arrows. Either was sufficient.

Outcome

The Divisional Court allowed the application 2–1 (Gillese J. with Maloney J.; B. Wright J. dissenting in part):

  • The OHRC’s s. 34(1)(d) decision was quashed as patently unreasonable;
  • The matter was remitted to a different member of the OHRC for fresh determination;
  • The Board of Inquiry hearing — scheduled to begin in October 2001 — was stayed pending the new s. 34(1)(d) determination;
  • Costs of the JR application were inclined to be fixed at $4,000 in favour of Sandringham, subject to written submissions.

The dissent (Wright J.) would have gone further and quashed the Board of Inquiry referral itself, on the basis that a six-year delay was “unconscionable and patently unreasonable.” While the dissent did not carry, its existence is meaningful: the larger remedy we requested was sufficiently engaged with by the bench that one judge would have granted it.

The practical effect for Sandringham: the Board of Inquiry hearing scheduled for October 2001 did not proceed on its original timeline. The OHRC was required to start over on the threshold s. 34(1)(d) question, this time with proper consideration of the statutory factors and proper disclosure of the underlying record. If we had not brought the JR application, Sandringham would have funded a full Board of Inquiry hearing (multiple days, substantial witness preparation) on a six-year-old fact pattern. By collapsing the OHRC’s threshold decision, we forced the discretionary question to be resolved before the substantive hearing — reversing the order in which the litigation would otherwise have unfolded.

Three Takeaways for Judicial Review of Administrative Decisions

1. The most efficient JR challenge anchors on the statute’s own factors, not on the underlying merits. Where a discretionary statutory power lists factors the decision-maker must consider, a brief and conclusory decision that ignores those factors is vulnerable on the Roncarelli v. Duplessis “irrelevant considerations / fetter on discretion” framework. The challenge does not require attacking the merits of the underlying decision — it requires showing that the statute’s own structure was bypassed.

2. Build a parallel procedural-fairness ground whenever the record permits. JR applications often turn on a single ground that may or may not carry on the day. Discovery aimed at what the decision-maker actually had in front of it — and what it did or did not disclose to the affected party — can produce a second independent winning ground (the duty of procedural fairness). This is particularly important where the substantive standard of review is uncertain.

3. Asking for the larger remedy can advance the smaller one. We asked the Divisional Court to quash both the OHRC’s threshold decision and the Board of Inquiry referral. The court granted only the smaller remedy — but the dissent would have granted both. Asking for the maximum remedy disciplined the court’s reasoning on the smaller one and made the relief actually granted more durable. There is no penalty for asking for too much, provided the request is principled.

Are you facing a decision of an Ontario tribunal, board, or commission?

Judicial review is the procedural tool for challenging decisions of administrative tribunals, regulatory commissions, and statutory boards in Ontario. The decisive question is rarely whether the underlying decision is “wrong” — it is whether the decision-maker exercised its discretion within the framework the statute provides.

We recommend a 60-90 minute legal posture assessment before commencing a JR application. We will review the underlying decision, the statutory framework, the realistic standard of review, and whether procedural-fairness grounds are available alongside any substantive challenge. This is a litigation-focused diagnostic, not a sales meeting.

Legal Foundation

This case engaged the following framework and authorities:

  • Human Rights Code, R.S.O. 1990, c. H.19, ss. 34(1)(d) and 36 — OHRC discretion to decline to deal with stale complaints; referral to Board of Inquiry
  • Roncarelli v. Duplessis, [1959] S.C.R. 121 — foundational Supreme Court of Canada authority on the limits of statutorily-conferred discretion (irrelevant considerations / fetter on discretion)
  • Hancock v. Shreve, [1992] O.J. No. 2379 (Ont. Div. Ct.) — earlier expression of the Divisional Court’s concern about OHRC delay (cited in dissent)
  • Duty of procedural fairness in administrative decision-making — the affected party must know the case it has to meet and have a meaningful opportunity to respond

Note on standard of review: the “patently unreasonable” standard relied on in this 2001 decision was abandoned by the Supreme Court of Canada in Dunsmuir v. New Brunswick, 2008 SCC 9, and the modern framework is now Canada (Minister of Citizenship and Immigration) v. Vavilov, 2019 SCC 65. The substantive analysis in this case (statutory factors + irrelevant considerations) survives the framework change; the formal review standard now applied to discretionary decisions of this kind is “reasonableness” under Vavilov. Practitioners reviewing this case should treat the substantive reasoning as still authoritative and the formal label as historical.

This case is publicly reported (202 D.L.R. (4th) 301; 148 O.A.C. 280; 36 Admin. L.R. (3d) 296). Both parties are named in the public judgment. This page summarizes our work for informational purposes only and does not constitute legal advice. Each judicial review application turns on the specific statutory framework, the underlying decision, and the procedural record. To discuss a specific matter, please contact us.

Sandringham Place v. OHRC: Divisional Court Quashes Patently Unreasonable Decision | Starkman & Zhang | Starkman & Zhang Lawyers