Jennings Lodge Inc. v. Canadian Mental Health Association
Jennings Lodge Inc.
Law Firm / Organization
Not Specified
Lawyer(s)

Soumya Roop Sanyal

Canadian Mental Health Association, Simcoe County Branch
Law Firm / Organization
Miller Thomson LLP
Lawyer(s)

Emily C. Durst

Background:

  • Nature of Case: Jennings Lodge sought an interlocutory injunction to stop CMHA from relocating residents of its care home at 38 Church St., Penetanguishene, Ontario, before the termination of their agreement on January 22, 2025.

Key Points:

  • Historical Context:
    • Jennings Lodge, a licensed care home under the Homes for Special Care Act, transitioned to a new model under the Community Homes for Opportunity (CHO) program.
    • CMHA became responsible for administering this program through a standardized Transfer Payment Agreement (TPA), which Jennings Lodge reluctantly signed.
  • Conflict:
    • CMHA issued a notice to terminate the TPA, prompting residents to relocate to maintain access to CHO services.
    • Jennings Lodge challenged the termination as unfair, claiming harm to its business, reputation, and the residents' welfare.

Court's Analysis:

  1. Serious Issue to Be Tried:

    • The termination clause in the TPA raised issues of unconscionability, aligning with principles from Uber v. Heller (2020 SCC 16).
    • The court recognized a serious issue regarding CMHA's treatment of residents as lacking agency in decision-making.
  2. Irreparable Harm:

    • Jennings Lodge demonstrated potential harm to its business and reputation.
    • The court found significant harm to residents, including the disruption of relationships, loss of stability, and limited choices following termination.
  3. Balance of Convenience:

    • Jennings Lodge and the residents faced more substantial harm than CMHA, tipping the balance in favor of the injunction.

Ruling:

  • The court granted the injunction, restraining CMHA from relocating residents until January 22, 2025, or the resolution of the case, whichever occurs first.
  • No monetary damages or costs were awarded in this decision.
Superior Court of Justice - Ontario
CV-24-2819
Civil litigation
Plaintiff