Owners: Condominium Plan No. 942 2336 v. Jeremy Chai Professional Corp.

24/07/13 – Jurisdiction Alberta
Part 13 published on 01/02/06
Alleged “brothel” found not to breach corporation by-law

This case involved a commercial condominium – a strip mall.  The condominium corporation was concerned about the business operated out of one of the units.  In particular, the condominium corporation alleged that the business was operating as an illegal brothel.  There was evidence that the business was advertised as a massage parlour but that customers were expressly or impliedly solicited for sex once they arrived in one of the private massage rooms.  This business was alleged to be “injurious to the reputation of the project”, and accordingly in violation of a by-law of the condominium corporation. 

The Court disagreed.  The Court said that the activities in the unit were not proven to be illegal, nor were they determined to be injurious to the reputation of the project.