Executive Summary: Key Legal and Evidentiary Issues

• Dispute over whether a former member of a housing cooperative retains special lease restrictions after losing membership.

• Determination of the Tribunal administratif du logement’s jurisdiction to fix rent and rule on lease modifications for non-member tenants.

• Interpretation of articles 1945 and 1955 of the Code civil du Québec in the context of cooperative housing.

• Evaluation of the legal relationship between cooperative membership and tenancy rights.

• Assessment of whether the cooperative’s conduct was consistent with its legal position regarding tribunal jurisdiction.

• Consideration of legislative intent and recent case law on the rights of non-member tenants in cooperatives.

Facts and outcome of the case

Background and factual context

A non-profit housing cooperative in Montreal entered into a lease with an individual, who was also a member of the cooperative at the time of signing. The lease included specific clauses that limited the ability of either party to seek rent fixation or modification of lease terms through the Tribunal administratif du logement, as permitted under articles 1945 and 1955 of the Code civil du Québec for cooperative housing. In 2019, the tenant lost his membership status in the cooperative but continued to reside in the unit under the same lease.

Subsequent years saw multiple notices of rent increases and attempts by the cooperative to modify lease conditions. The tenant contested these increases, and the cooperative sought to terminate the lease, arguing that the loss of membership status required the tenant to vacate the premises and that the tribunal lacked jurisdiction to fix the rent. The Tribunal administratif du logement issued various orders regarding the tenant’s occupation and, after further proceedings, fixed the rent for the relevant period.

Legal issues and arguments

The central legal issue was whether the restrictions on seeking rent fixation or lease modification before the tribunal, which apply to cooperative members, also bind tenants who have lost their membership status but remain in occupation. The cooperative argued that the statutory and contractual limitations should persist for the duration of the tenancy, regardless of membership status. The tenant maintained that, upon losing membership, he reverted to the status of an ordinary tenant and regained the protections and recourses available under the general law, including the right to have the tribunal fix the rent.

Court’s analysis

The court examined the relevant provisions of the Code civil du Québec and the Loi sur les coopératives, as well as recent appellate decisions clarifying the relationship between cooperative membership and tenancy. The court emphasized that the primary legal relationship, once membership is lost, is that of landlord and tenant, not member and cooperative. The court found that the statutory restrictions on rent fixation and lease modification by the tribunal apply only while the tenant is a member of the cooperative. Once membership ceases, those restrictions no longer bind the tenant, who regains the rights of an ordinary tenant under Quebec law.

The court also noted that the cooperative itself had previously invoked the tribunal’s jurisdiction in dealings with the tenant after his loss of membership, which undermined its argument that the tribunal lacked jurisdiction.

Outcome

The court dismissed the cooperative’s appeal and confirmed the decision of the Tribunal administratif du logement, which had fixed the rent and recognized the tenant’s right to remain in the premises. The court awarded costs against the cooperative but did not award any damages. The decision clarifies that, in Quebec, former members of housing cooperatives who remain as tenants are entitled to the same protections and recourses as other tenants, and are not subject to the special limitations that apply to cooperative members.