Ontario Court of Appeal Rules on Sponsorship Undertakings

Many of us have heard the horror stories. Boy meets Girl. Boy marries Girl. Boy sponsors Girl (or vice versa). What should be a fairy tale story does not always end up as romantically as hoped, however, and in some instances (though they may be rare), Canadians who have sponsored their loved ones are left in a lurch – loved one gone and the government chasing after them for money run up by the disappearing spouse.

According to Canada’s current immigration laws, Canadian citizens and permanent residents who sponsor a family member are financially responsible for that family for a minimum of 3 years after they obtain permanent residence. This has meant that if the sponsored family member later seeks government funding or assistance, the sponsor must then pay the government – regardless of circumstances or whether the relationship is still intact.

Since 2004, the requirement for sponsors to pay for the debts of sponsored family members has been very strictly enforced. The result? Thousands of individuals being required to pay tens of millions of dollars to the government. This practice, however, is soon to change.

On November 12th, 2009, the Ontario Court of Appeal released a judgement ordering governments to stop automatically charging individuals for social assistance debts run up by family members who they had sponsored as immigrants. Regarding the current practice to be “unfair”, the Court mandated that such situations should be considered on a case-by-case basis, affording the sponsor an opportunity to explain why they should not have to pay.

This is a landmark decision on the subject of sponsorship undertakings, and will provide many individuals who have been caught by exceptional circumstances a right to explain their situation.