A recent Ontario Superior Court decision raises serious questions about the rights of Ontario condominium corporations to sue on behalf of their unit owners. The decision is under appeal – so we will be receiving a higher ruling on the point. This issue is as follows.
Section 23 of Ontario’s Condominium Act outlines the circumstances under which Ontario condominium corporations can sue on behalf of their owners. That section was essentially designed to give condominium corporations “class actions rights” on behalf of their owners, for various types of claims. But how far do those rights extend? The recent Court decision seems to say that these rights are seriously limited. My hope, for condominium corporations and their unit owners, is that Ontario’s Court of Appeal will recognize the long-held consumer protection purposes of the Condominium Act and therefore will overturn the lower court decision, on appeal. Here’s a summary of the lower Court decision: