Summer Services Limited v. Karwood Commercial Condominium Corporation (Newfoundland and Labrador Supreme Court)

The applicant was the owner of a unit in a commercial condominium.  The condominium Declaration required the Board’s written consent for any alterations or repairs to a unit or for any service upgrades to a unit for air, water or electricity.  

The owner asked for the Board’s consent to install air conditioning.  The Board gave approval, but conditional on the owner bringing itself into compliance with provisions of the Declaration respecting the permitted uses of the unit.  [The Board alleged that the owner was in violation of the Declaration in that the owner’s use was in competition with the core business of another owner.]  The Court held that the particular condition could be imposed provided this was done with honesty and in good faith.  The Court said that the Board had not acted honestly and in good faith.  In particular, the Court concluded that the Board’s true reasons for refusing consent were not as expressed to the owner.  Therefore, the Court ordered that the owner’s application for air conditioning be approved.