01/30/2019 – Jurisdiction British Columbia
Part 65 published on 01/03/2019
Valid Shared Facilities Agreement existed between the parties
The Plaintiff, Interville, had developed a large commercial and residential project, which ultimately included six separate parcels, one of which was the Defendant strata plan. Prior to proceeding with the development, Interville had entered into a written “cost sharing agreement” (in relation to certain matters to be shared by the various parcels) as the then owner of the six parcels. After its creation, the Defendant strata corporation had for a number of years contributed to the shared costs in accordance with the cost sharing agreement. The strata corporation then alleged that this had been done in error, and asserted that it had no such obligation because this is a “positive covenant” that is not binding upon the strata corporation as a subsequent “owner” of one of the six parcels (without the strata corporation having “signed on” to the agreement).
The Court held that the strata corporation was bound by the cost-sharing agreement because the strata corporation had verbally agreed to be bound by the agreement. The Court said:
I conclude that upon the Strata Corporation coming into existence, an agreement was formed between the Strata Corporation and Interville pursuant to which the Strata Corporation agreed to pay 23.72% of the Keefer Steps Costs as invoiced by Interville from time to time. The material terms of the agreement were as expressed in writing in the Disclosure Statement: the Strata Corporation would pay 23.72% of the Keefer Steps Costs, based on the buildable area of the Firenze. In the circumstances, it is not necessary to consider whether, in the absence of an agreement, the Strata Corporation would be unjustly enriched by not paying a proportionate share of the Keefer Steps Costs.
I declare that the Strata Corporation is and was legally obliged to pay 23.72% of the Keefer Steps Costs, as invoiced by Interville from time to time. Interville shall have judgment against the Strata Corporation in an amount reflecting the unpaid obligation to date. If the parties are unable to agree as to the specific quantum of the judgment, they have leave to appear. Interville shall have its costs at Scale B.
Interville Development Limited Partnership v The Owners, Strata Plan BCS2313, 2019 BCSC 112