08/08/2018 – Jurisdiction Ontario
Part 63 published on 01/09/2018
Court defers to condominium Board in matters of corporate management
The applicant owner claimed that the condominium corporation was failing to properly manage and administer the affairs of the corporation, particularly in relation to financial management. Among other things, the owner alleged that the contributions to the reserve fund were inadequate, that the regular monthly condominium fees were inadequate, and that certain required repairs had been neglected by the Board. The owner applied for orders directing the corporation to attend to those matters.
The Court declined to make the requested orders and dismissed the application. The Court found, on the evidence, that there was no clear or obvious failure of the condominium corporation to fulfill its statutory duties.
The Court said:
I agree with the Respondents’ submissions that it is the Board that is elected to manage the affairs of the corporation and that the business judgment rule applies. The Board is, in my view, in a much better position to make decisions affecting the corporation than this court. Our court should not substitute its own judgment for those of the Board, which has been elected by the unit owners.
Of critical importance is the fact that I cannot find, on the basis of the evidence on the record, that the Respondents have not acted fairly and reasonably, in good faith, exercising the care, diligence, and skill that a reasonably prudent person would exercise in comparable circumstances. Further, I cannot find that court intervention is required as submitted by the Applicant. This Application is therefore dismissed.
Patterson v. York Condominium Corporation No. 70 (Ontario Superior Court) August 8, 2018