Part 52 published on 01/11/15
Court determines cost award in relation to condominium arrears
The condominium corporation was granted judgment for arrears of common expenses. The dispute was protracted because the owner had claimed set-off for alleged damages due to a water seepage issue.
The Court said:
The CPA (Condominium Property Act) is clear that owners may not withhold condominium fees even if they are engaged in litigation with the condominium corporation.
…
In my view, in the face of an owner defaulting on a CPA statutory duty or a bylaw obligation in a condominium corporation context, the condominium corporation should, prima facie, be entitled to a complete indemnity. Of course, that is a rebuttable presumption which will turn on the facts in each case.
Given the particular facts of this case, the Court reduced the cost award (in favour of the condominium corporation) to 80% of the corporation’s actual costs. In doing so, the Court made reference to the principle of “proportionality” (ie. the idea that the costs should be reasonable in light of the amount of the arrears).