15/01/2025 – Jurisdiction Ontario
Part 89 published on 01/03/2025
Corporation’s chargebacks were unlawful
The owner had paid chargebacks that had been demanded by the condominium corporation in relation to compliance letters sent to the owner by the condominium corporation’s legal counsel. The payments were made under protest, after the condominium corporation had threatened to register a lien against the owner’s unit for collection of the amounts in question.
The Court held that there was inadequate proof that the owner had violated the condominium corporation’s governing documents. The Court also held that a condominium corporation has no right to register a lien (or to threaten to register a lien) for such enforcement costs – without first obtaining a Court order. The Court said:
I disagree with the Defendants’ assertion that the indemnity provisions in the Declaration allow the solicitor fees to be claimable as a common expense recoverable by way of lien under section 85 of the Act. Legal fees incurred to enforce compliance with the Act or the Constating Documents are not recoverable through a lien absent a court order as required by section 134(5) of the Act: Amlani v York Condominium Corporation No. 473.