20/10/2017 – Jurisdiction Alberta
Part 61 published on 01/03/2017
Condominium corporation entitled to recover insurance deductible by lien in priority to mortgage. Formal Board resolution unnecessary
The Toronto Dominion Bank v. PotterThe Bank was taking foreclosure proceedings under the Bank’s mortgage. The question was whether or not the condominium corporation’s claim for recovery of a $50,000 insurance deductible incurred by the corporation (in relation to insured damage to the unit) was recoverable by the corporation under a lien and in priority to the mortgage. The Court held that the corporation was entitled to recover the $50,000 deductible in priority to the mortgage.
In the course of the decision, the Court also dealt with the Bank’s argument that there needed to be a formal Board resolution to proceed with the chargeback of the deductible. The Court said:
In my view, so long as it is clear that the board of directors of the condominium corporation have reached a particular agreement and acted on it, and no meeting to record it is expressly required, it is not a valid complaint that it was not formally recorded by way of resolution.