Small Business Dispute and Lease Protection Act

Summary#

This bill creates an independent Small Business Commissioner in Nova Scotia. The goal is to help small businesses solve disputes quickly and cheaply, and to make government rules fairer and easier for them.

• Sets up an Office of the Small Business Commissioner with a five‑year term and independence.
• Requires most business-to-business disputes and commercial lease issues to try mediation before going to court.
• Lets the Commissioner help small businesses in disputes with public bodies (government departments and agencies).
• Allows the Commissioner to review laws and policies and report on barriers small businesses face.
• Adds protections for small-business tenants when a landlord ends a commercial lease for demolition, redevelopment, or major renovations.

What it means for you#

• Small business owners (incorporated)

  • You can get information on your rights and duties in business deals and leases.
  • You must try mediation before suing over things like unpaid invoices, unfair contract terms, supply chain issues, or commercial lease disputes. Urgent cases can still go straight to court.
  • Mediation is meant to be timely, affordable, and accessible. If you reach a settlement, it is binding.
  • If your commercial landlord ends your lease to demolish, redevelop, or do major renovations, you must get written notice and proof of the plan. You are owed reasonable moving costs, the remaining value of your improvements, and other losses set by regulation.
  • If the landlord does not follow through with the stated work in time, you may get extra compensation.
  • You can ask the Commissioner to help with a dispute that affects your business operations with a public body. The Commissioner can seek information, mediate, and make recommendations, and public bodies must cooperate.

• Who qualifies as a “small business”

  • The Act covers incorporated businesses with up to 100 employees (this cap could be raised by regulation). Sole proprietors and partnerships are not included unless rules change.

• Landlords of commercial property

  • You must give written notice and evidence if ending a small business tenant’s lease for demolition, redevelopment, or major renovation.
  • You must pay the tenant’s reasonable relocation costs and the unamortized value of their leasehold improvements, plus other losses set by regulation.
  • If you do not complete the stated work within the set time, you must pay extra compensation.
  • You and your tenant must attempt mediation before going to court over covered lease disputes.

• Corporations and suppliers dealing with small businesses

  • You must attempt mediation before starting a lawsuit on covered disputes (for example, unpaid invoices or unfair contract practices).
  • Mediated agreements are binding, which can provide quicker, more certain outcomes than court.

• Public bodies (provincial departments and agencies)

  • You must cooperate with the Commissioner during dispute resolution with small businesses, including providing information and taking part in mediation.
  • You may receive non-binding recommendations to resolve issues.

Expenses#

No publicly available information.

Proponents' View#

• Gives small businesses a low-cost, faster way to resolve disputes, helping with cash flow and keeping doors open.
• Levels the playing field with larger companies and landlords by adding an independent helper and fair lease exit rules.
• Reduces court backlogs and legal costs by requiring mediation first.
• Shines a light on “red tape” and broader barriers, helping the government fix rules that hurt small firms.
• Protects business tenants from redevelopment evictions without proof or fair compensation.
• An independent Commissioner builds trust across business, landlords, and government.

Opponents' View#

• Mandatory mediation may add a step, delaying access to court and increasing costs in some cases.
• Lease compensation rules could raise costs for landlords, which may lead to higher rents or fewer renovations.
• Running the Commissioner’s office will cost money; the size and value of the new bureaucracy are unclear.
• The Act mainly covers incorporated firms; many sole proprietors and partnerships may be left out.
• Binding settlements could pressure small businesses into accepting deals they later regret if mediator quality varies.
• Recommendations to public bodies are not binding, so businesses may not see real change in government practices.