Part 42 published on 01/05/13
Special award of costs in a dispute between condominium corporations
GSCC 50 had been successful on its application to restrain GSCC 46 from shutting off air-conditioning services for the GSCC 50 property; and for an order that the dispute be resolved by mediation and arbitration. [See Condo Cases Across Canada Part 41, February 2013.]
Subject to some adjustments because GSCC 50 was not 100% successful on all issues, the Court awarded costs to GSCC 50 on a substantial indemnity scale. The Court referred to other cases that have held that a defaulting condominium owner should pay costs (to the condominium corporation) on a substantial indemnity basis. The Court said:
Although the cases cited involve the dispute between a unit holder and a condominium corporation, I agree that the same principle should be applied in the context of shared facilities where multiple condominium corporations co-exist as neighbours for the purposes of sharing facilities similar to the situation of owners in a single condominium corporation. I find it would be unfair for No. 50 (and its unit owners) as an innocent neighbour to bear the consequence of the costs incurred as a result of the unnecessary and unreasonable actions taken by No. 46. The innocent owners of No. 50 should not have to bear the costs which were solely incurred because of the position taken by No. 46.
In other words, in a dispute between condominium corporations, the successful party should recover its full costs.