Part 51 published on 01/08/15
Common elements condominium corporation’s claim for common expense arrears partially dismissed and partially referred to mediation and arbitration
TCECC 2041 is a common elements condominium with 31 parcels of tied land (POTLs). The defendant, TSCC 2051 is located on one of the POTLs. TCECC 2041 sought to recover alleged arrears of common expenses from the owners of all of the units at TSCC 2051. The claim was partially dismissed and partially referred to mediation and arbitration. The Court said:
1. TSCC 2051 did not deny its obligation to pay any common expenses owed to TCECC 2041, but disputed liability for a “host of reasons” which had to be determined through mediation and arbitration under section 132 of the Condominium Act. The Court said:
The primary dispute here is not over legal liability but the fair and reasonable adjustment of accounts. It is not primarily a dispute about the Condominium Act, but rather over the alleged failure of the applicant to discharge its obligations in connection with common expenses, as set out in detail in the declaration, by-laws and rules of TCECC. This is precisely the sort of mundane issue that ought to be sorted out in the less expensive and faster process of mediation/arbitration, rather than through litigation in the Superior Court.
2. The proper party (defendant) to the dispute is TSCC 2051 – not all of its owners.
3. The limitation period (for recovery of common expenses) is two years – unless a lien has been registered within the three-month deadline set out in section 85 of the Condominium Act. Some of the claims were dismissed due to expiry of the limitation period.