Middlesex Condominium Corp. No. 232 v. Middlesex Condominium Corp. No. 232 (Owners and Mortgagees of) (Ontario Divisional Court)

In two separate proceedings, the lower court had found that the corporation’s former directors had acted in bad faith.  [See Condo Cases Across Canada, Part 42, May 2013]  In each of those cases, the court had ordered costs to be payable personally by the former directors (even though the former directors had not been named as parties in those proceedings).  On appeal, the Divisional Court held that one of the two cost awards (against the former directors) should be overturned (and should therefore be paid by the condominium corporation) because the lower Court Judge had not properly applied the tests for ordering costs against a non-party, in that case. 

The other cost award (against the former directors) was upheld.