12/07/13 – Jurisdiction Alberta
Part 36 published on 01/12/11
Legal costs related to common expense collections cannot be added to lien. They can only be the subject of an unsecured claim against the owner
Part 36 published on 01/12/11
Legal costs related to common expense collections cannot be added to lien. They can only be the subject of an unsecured claim against the owner
This case concerned collection of common expense arrears. Amongst other things, the court held as follows:
- The corporation’s lien did not include the corporation’s legal costs related to the collection. Those amounts could be claimed personally against the owner, but not under the lien.
- The Board of Directors had not passed any resolution to establish any interest rate (on the arrears) pursuant to the Condominium Property Act or the corporation’s by-laws. As such, interest was only recoverable at the rate for pre-judgment interest under the Judgment Interest Act.
- The corporation was not required to provide notice (to the owners) of an increase in common expenses. A Board resolution was sufficient to levy the increase. The Court said: “By-laws setting out the procedure for proper service of other notices are of no moment.”
However, interest was not recoverable “on the increased amount of the regular assessment and on the amounts of the special assessment from October 6, 2008 to December 10, 2010 being a period when documents where requested and undelivered by the condominium corp.”
- Resolutions passed and recorded in the minutes of Board meetings “are adequate memorializations of Board decisions”. No more formal resolution document was required (beyond the minutes).