Part 28 published on 01/11/09
Strata corporation entitled to sell strata lots of owner in default
The owner, Daniels, failed to pay a special levy. She alleged that the levy was invalid because the strata corporation failed to follow proper procedures to authorize the levy.
The Court agreed that the procedures were imperfect, but nevertheless exercised its “inherent discretion to consider the prejudice to each party as part of the test of whether the procedure was fair, reasonable and appropriate in all the circumstances.” The Court said:
… I find the Impugned Motion overall was fair in that the petitioner has and will suffer greater prejudice than the respondent if the levy is found invalid. The money collected under the 2007 special levy has been collected and spent. If the levy is found invalid, the Strata would have to determine how to raise the money to refund the moneys collected under the levy, determine who should receive the refund, and then eventually have another vote for a new special levy. In the end, Ms. Daniels would be required to pay the 2007 special levy, but designated as a different special levy. The Strata would suffer significant prejudice if the 2007 special levy were invalidated.
The Court ordered that the owners’ lots be sold. The Court declined the owner’s request to postpone the sale for six months to allow her an opportunity to sell.