10/11/2021 – Jurisdiction Alberta
Part 76 published on 01/12/2021
Court decides condominium corporation’s claims for interest and costs in connection with collection of common expenses
The condominium corporation appealed from a Master’s order determining amounts owed to the condominium corporation for common expenses (including interest and costs). The Master had declined to award costs on a solicitor-and-client basis. On appeal, the condominium corporation argued that it was entitled to costs on a solicitor-and-client basis by virtue of Section 42 of the Condominium Property Act and the by-laws of the condominium corporation.
The Court confirmed the condominium corporation’s entitlement to receive interest on the arrears at the rate of 18% per annum, pursuant to Sections 40 – 42 of the Act and the corporation’s by-laws.
In terms of costs, the Court held that the Master’s decision to award reduced costs was entirely proper (and within the Master’s authority), because the costs claimed were unreasonable and/or unnecessary. The Court said:
Here, there is ample evidence to question the amount of costs claimed by the Plaintiff. The Defendants have placed the question of whether the Plaintiff’s solicitor-client costs were reasonable or required directly in issue. Therefore, an analysis is necessary to determine whether the actions undertaken by the Plaintiff were reasonable or required such that the Defendants are liable to pay their costs on a solicitor-client basis.