Part 48 published on 01/11/14
Corporation’s costs incurred due to grow-up were added to the unit owner’s common expenses, in priority to the mortgage
The condominium corporation incurred costs, including legal costs, due to a grow-up operation in the owner’s unit. There were two issues for the Court:
a) Was the owner of the unit obligated to pay full indemnity, solicitor-client costs?
b) Were these amounts part of the assessment against the unit, in priority to the mortgage?
The Court answered both questions in the affirmative. The Court said:
… I conclude that since the Applicant Condominium Corporation’s claims are for expenses incurred with respect to the Respondent’s particular Unit – following his infraction of the Bylaws – and the relevant Corporation Bylaws, in its section 3.3(m), allow these expenses to be included as part of the assessment (contribution) against the Respondent’s particular Unit, the individually assessed expenses, and overdue interest on them, are covered by the statutory charges under section 39 and 41 of the Condominium Property Act.
In the result, subject to assessment of the solicitor-client costs by the assessment officer, the Applicant’s expenses in the circumstances of this matter form part of the Respondent Unit’s assessment for contribution under the CPA, s 39, and constitute caveatable interests in priority to RBC’s registered mortgage.