Demetrios Yiokaris And Niki Manwani Win Important Regulatory Decision for the HCRA
January 10, 2024
Koskie Minsky LLP acts as counsel to the Home Construction Regulatory Authority (HCRA), which is the regulator for new home builders and vendors in Ontario. Demetrios Yiokaris and Niki Manwani recently succeeded before the Divisional Court in overturning the interpretation by the License Appeal Tribunal (LAT) of the “integrity and honesty” provisions in the New Home Construction Licensing Act.
The appellate court found that the HCRA is allowed to deny registration to a licensee if it shows “reasonable grounds for belief” that the licensee will not carry on business in accordance with the law and integrity and honour. The Registrar does not have to go as far as to show that the licensee’s past or present conduct makes it more likely than not that he will not carry on business as required. Ultimately, the Divisional Court stated that the onus is on the licensee to prove to the LAT the non-existence of reasonable grounds for belief supporting a denial of license.
In doing so, the appellate court stressed the “meaningful” and “robust” gatekeeper role of the Registrar; and that “being licensed to build and sell new homes in Ontario is a privilege, not a right.”
This is anticipated to be a major decision in years to come for the HCRA and other provincial regulators, and one of the more important regulatory decisions of 2024. It affects numerous regulated industries, and potentially up to 70 statutes.
To read the decision, please click here.
