Strata Corp. LMS3442 v. Storozuk (British Columbia Supreme Court)

12/01/15 – Jurisdiction British Columbia
Part 48 published on 01/11/14
Owner entitled to exemption from “no renting” by-law

The strata corporation’s by-laws included a by-law prohibiting owners from renting their strata lots.  Pursuant to Section 144 of the Strata Property Act, one of the owners sought the Strata Council’s consent to allow him to rent his strata lot (ie. for exemption from the by-law), due to his financial hardship.  The owner went ahead and rented the strata lot before the Strata Council gave consent.  As a result of this breach of the by-laws, the Strata Council decided to impose fines on the owner.  However, the Strata Council also held a hearing to consider the owner’s application for exemption from the by-law; and declined to grant the requested exemption.

 

The owner refused to pay the fines and the strata corporation started this Court proceeding for recovery of the fines. 

 

The Court held that the owner was entitled to the requested exemption from the by-law, because the strata corporation had failed to meet the technical requirement, in Section 144 of the Strata Property Act, that its decision be provided to the owner, in writing, within one week after the “exemption hearing”.  The Court said:

 

While the strict interpretation of the statute seems unjust given that Mr. Storozuk knew the result from the oral decision, received the written decision only one day late, rented his condo without following the proper procedure himself, and likely acted in bad faith by attempting to mislead the (strata corporation) by stating that the tenants were “renting to own”, I find that I am bound to apply the statute.  The statute specifically states that an exemption is allowed if the strata corporation does not give its decision in writing within one week after a hearing is held.

 

The strata corporation’s claim for recovery of the fines was dismissed.