Part 39 published on 01/08/12
Board entitled to reverse earlier decision respecting repair costs.
In 2005, the Board authorized the expenditure of corporation funds in order to repair a plumbing backup problem in the plaintiffs’ unit. The constitution of the Board subsequently changed. The new Board concluded that the proposed repairs were unit repairs, and thus beyond the Board’s mandate. The new Board therefore reversed the decision of the previous Board.
The unit owners then paid for the required work and sued the corporation for the related repair costs.
The Court held that these were unit repairs, falling within the owners’ responsibility. The Court also said that the Board could properly reverse its previous decision. The Court said:
It cannot seriously be argued that a decision made reasonably and in good faith is forever – and under all circumstances – binding. The Plaintiffs knew full well when they undertook the repair that the Board was unwilling to reimburse. The Board was entitled to amend its earlier decision prospectively. But it would have been in muddier waters if it attempted retrospectively to assail payments alreadydisbursed to the Plaintiffs, something it has – wisely – never sought to do.
The owners’ claim was dismissed.