Aviawest Resort Club v. The Owners, Strata Plan LMS 1863 et al

30/08/13 – Jurisdiction British Columbia
Part 14 published on 01/05/06
Appointment of administrator extended

An administrator had previously been appointed (by Court Order) to protect the interests of the minority owners.  The court in this case was satisfied that “significant unfairness” still existed between the minority owners and the majority owners.  In order to manage this continuing unfairness, the Court felt that it was necessary to extend the appointment of the administrator for a further year.  The Court also noted that the administrator might well require the further assistance of the Court under Section 164 of the Strata Property Act, to remedy the significant unfairness.  The Court therefore said that “the Court will consider such applications on behalf of the administrator so that he will obtain such documentation and directions that will be required to remedy the unfair matters cited by him that still exist”.   

[Editorial Note: In a previous decision dealing with the same Strata Corporation (see Condo Cases Across Canada, Part 11, August 2005), the B.C. Court of Appeal ruled that the powers of an appointed administrator could not overcome the voting rights of the Strata owners.  However, in this subsequent decision, the Court appears to be saying that the powers of the administrator can be further extended by Court Order.  In other words, although the general rule may be that an appointed administrator cannot avoid the voting rights of owners, it appears that a Court may grant any authority to the administrator (including authority of the owners) if necessary to remedy significant unfairness.]