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Wednesday, August 5, 2026

A new standard in fines for illegal woodlot clearing?

AS PREVIOUSLY PUBLISHED IN THE RURAL VOICE:

Recent decisions made by the Ontario Court of Justice in a Huron County case serve as a cautionary tale for farmers and landowners about the steep penalties that can follow illegal woodland clearing.  A farm corporation and its sole director were each convicted of two offences under the County’s Forest Conservation By-law: unlawfully destroying a woodland and failing to obey a stop work order. The case involved the clearing of approximately 6 to 7 acres of forest (about 2.75 hectares) on a farm property, estimated to involve the destruction of roughly 10,000 trees. The penalties imposed by the Court for the violations may be unprecedented for tree clearing by a rural landowner in Ontario. 

The farm corporation involved had filed a Notice of Intent under the Forest Conservation By-law for a selective harvest plan to remove dead ash trees. The plan was prepared by a professional forester and approved by the County’s forestry staff in accordance with the By-law.  During a site visit in early 2021, the County’s Forest Conservation Officer explicitly warned that the woodlot qualified as a protected “woodland” and could not be clear-cut for agriculture. Despite this warning, it was later discovered that between March and July 2023, the woodland was largely bulldozed and piled for removal. Upon spotting large piles of pushed-out trees on the site in June 2023, the County issued a Stop Work Order. However, when officials returned with a search warrant in August, they found the piles gone and evidence of recent burning – meaning the order had been ignored and the felled trees had been burned in the interim.

Estimates derived from GPS mapping and sample plots showed about 6.8 acres of woodland destroyed, representing an extrapolated 10,450 trees removed (the average between the high estimate of 15,200 and low estimate of 5,700 trees adopted by the Court). This comfortably met the Forest Conservation By-law’s definition of a protected “woodland” (land 1 ha or more with at least 1,000 trees per hectare). The Court found that the corporation and its director had “caused or permitted” the destruction of a woodland, and further had failed to comply with the stop work order by continuing clearing activities after it was issued. Convictions were registered against both the corporation and its director for both offences.

It is the sentencing decision of the Court that is the most noteworthy aspect of the case.  The Huron County Forest Conservation By-law includes remarkably strong penalty provisions. For a first offence, an individual is liable to a fine of up to $10,000 or $1,000 per tree, whichever is greater, and a corporation can be fined up to $50,000 or $5,000 per tree. With well over ten thousand trees removed in this case, the theoretical maximum fine ran into the millions of dollars. The prosecutor sought a total of $500,000 in fines, split between the two defendants. The defence requested a far lower penalty of around $70,000–$80,000 arguing mitigating factors such as the director’s advanced age, lack of prior record, and the fact that the same individual would ultimately pay both the corporate and personal fines.

After weighing the factors relevant to sentencing, the Court emphasized that deterrence and denunciation had to be the primary considerations for this kind of environmental offence. The Justice of the Peace noted there was little in the way of mitigating factors beyond the fact that these were first-time offenders. On the other hand, aggravating factors were plenty: the Defendants knew in advance the land couldn’t be cleared (from the 2021 forester’s plan and site meeting) yet went ahead anyway; a vast number of trees were destroyed; and the stop work order was flouted, effectively destroying evidence by burning the debris. In the words of the Justice of the Peace, the clearing and burning occurred “in full defiance” – conduct which “cannot be condoned by modest penalties.”

In the end, the Court fined the director $175,000 for the woodland destruction and $25,000 for the stop work order violation. The corporation was separately fined an additional $175,000 for the destruction and $25,000 for the stop work count. The fines combined total $400,000 – an enormous sanction in the context of farm tree-cutting cases. The Court also placed both defendants on probation for 2 years to ensure future compliance, including a condition not to commit the same offence again. The By-law also allows the court to order the offender to rehabilitate the land or replant trees, but in this case no replanting order was made.  The Defendants had sought an adjournment to explore a replanting plan (presumably to mitigate the fine amount), but no plan was put forward.  

The fines levied in this case appear dramatically higher than what has been seen in many past cases under tree protection by-laws, at least in rural areas. The clear message from the Court is that violating woodland protection rules cannot “be seen as a cost of doing business.” In other words, the fines are meant to hurt, not to be simply written off as a business expense. The Justice of the Peace explicitly stated that “other farmers and landowners must understand that if…a woodland is destroyed or…stop work orders are ignored, then there will be serious financial consequences.” 

If fines of the magnitude imposed in the Huron County case reflect a shift in thinking about penalties, then the days of “ask forgiveness, not permission” are gone when it comes to clearing woodlands. Violating a tree conservation by-law is not worth the risk. The Huron County prosecution, although it did involve a very large number of trees (estimated) is a stark example of how Ontario courts are prepared to hand down record-setting fines to protect the environment and drive the point home. Landowners are best advised to work within the law – consult with forestry officials, consider sustainable harvesting, or seek proper exemptions if available – rather than face the possible hefty consequences of illegal clearing.

Read the decision at: 2025 ONCJ 514 (CanLII).

Don’t mistake a warranty for a condition

AS PREVIOUSLY PUBLISHED IN THE RURAL VOICE:

Contracts for the sale of land often include both conditions and warranties, which serve distinct legal purposes and aren’t always easy to distinguish.  Conditions are essential terms that must be fulfilled for the contract to proceed. If a condition is not met – such as a buyer being satisfied with a home inspection – the non-breaching party may terminate the agreement and walk away.  Conditions are often referred to as “dealbreakers” because they directly affect the enforceability of the contract. In contrast, warranties are non-essential promises or factual assurances made by one party, typically the seller, such as confirming the property has not been used for illegal activities. Breach of a warranty does not void the contract but may entitle the injured party to compensatory damages. Warranties are often made “to the best of the seller’s knowledge and belief” as at the time of closing but are intended to continue to be effective after closing.

Correctly identifying what is a condition and what is a warranty in a contract is a vital step for any buyer looking to back out of a deal.  Where some deficiency is discovered by the buyer before closing that engages a contractual term, the question will be whether there has been a breach of a condition or a breach of a warranty.  For example, a contract for the purchase of a house may contain a clause in which the seller has represented that there are and have been no problems with water penetration into the basement.  With the right wording, that clause may constitute a condition that the house has no water penetration problems.  If the basement floods prior to the closing date, the buyer might be entitled to walk away from the deal (with the purchase deposit to be refunded).  However, if the clause is only a warranty, and the basement flood did not cause “substantial damage”, the buyer probably has to go through with the purchase and can only claim damages for breach of warranty from the seller.

Sometimes buyers make the wrong choice.  Confronted with a property deficiency just before the closing date, buyers may take the position that a condition has been breached and that they are no longer bound by the contract.  The seller may try to keep the deal alive and fix whatever problem has arisen (e.g. fix the leaking basement) or offer an abatement of the purchase price.  The buyer must understand that once he or she walks away from the deal, the seller’s offer to fix the problem or reduce the purchase price is likely off the table.  If it turns out that a warranty and not a condition was breached, the seller will likely re-sell the property to a new buyer, keep the original buyer’s deposit, and then sue the original buyer for any shortfall in the new sale price along with any additional costs and damages sustained.  By then it is too late for the original buyer to accept the seller’s offer of repairs or an abatement.

The distinction between a condition and a warranty was one of the issues addressed in a recent Superior Court decision arising out of a failed farm purchase transaction.  The intended buyer agreed to pay $1.8 million for a 120-acre property that contained two natural gas wells.  The buyer paid a $250,000 deposit.  The sale did not close and the buyer said that he refused to complete the transaction because the seller had breached an environmental warranty in the contract.  The buyer alleged that the warranty covered the status of the gas wells, which the buyer said were not licenced and could not be legally operated.  Of course, if the clause on which the buyer relied was only a warranty, it didn’t entitle him to walk away from the deal.  The seller sued for the deposit and additional damages.  The judge hearing the case found that the clause was a warranty and was not actually breached by the seller.  The buyer forfeited his $250,000 deposit and was also ordered to pay the seller’s damages arising from the breach, which consisted of additional costs incurred to carry and re-sell the property.

The case decision explains that after the buyer failed to complete the purchase transaction as required by the contract, the seller still offered to repair any deficiencies identified with the two gas wells to keep the deal alive.  However, the buyer refused the seller’s offer.  The buyer did not seem to appreciate that the breach of a warranty would only entitle the buyer to damages, not to rescind the contract.  This ended up costing the buyer his $250,000 deposit and more on top of that.

The buyer also tried to pin responsibility for the seller’s claim on the buyer’s own real estate agent.  The buyer alleged that the realtor had breached his duties to the buyer by failing to follow the buyer’s instructions in drafting the wording of the purchase agreement and in failing to disclose that the realtor was also acting as agent for the seller.  The buyer alleged that the realtor preferred the interests of the seller over the interests of the buyer.  The judge dismissed this counterclaim by the buyer without much explanation, stating that, “the evidence does not substantiate the claims”.

Read the decision at: 2025 ONSC 5258 (CanLII).