Part 51 published on 01/08/15
Board improperly determined common expenses
This condominium is a mixed residential-commercial project in Calgary. The applicant was one of the commercial owners. The Applicant alleged that the board had unfairly imposed excessive common expenses on the commercial owners.
In the past, the board had levied common expenses based upon unit factors, even though the corporation’s by-laws called for a different method. For the 2014/2015 budget, the board applied a new method which the board felt was in keeping with the by-laws.
The Court determined that the board’s new budget was not in accordance with the by-laws. According to the Court, the common expenses payable by the commercial owners should have been significantly lower. The Court ordered appropriate adjustments (for the year 2014/2015). The Court also held that the board had acted unfairly and without proper regard for the interests of the commercial owners. As a result, the Court made the following Orders:
- The Chair would be immediately removed from the board and would be barred from standing for election in 2015.
- All other board members, apart from Mr. Verjee, would be prohibited from being candidates in the upcoming election.