Part 39 published on 01/08/12
Mandatory Mediation and Arbitration does not apply to a dispute involving a Tenant
Peel Standard Condominium Corporation No. 767 is a commercial condominium (a 30-store retail plaza). Under the terms the Declaration, the Owner of Unit 20 was granted exclusive rights (among the condominium owners) to sell fresh meat and poultry. In contravention of this exclusive right, the Tenant of Units 11 and 12 was also selling fresh meat and poultry.
The Condominium Corporation applied to Court, under Section 134 of the Condominium Act, 1998, for a “Cease and Desist” Order against the Owner and Tenant of Units 11 and 12. The Court granted the Order (requiring that the Tenant stop selling fresh meat and poultry and requiring that the Owner take reasonable steps to ensure that the Tenant complied). The Court said that the mandatory mediation and arbitration provisions in Section 132(4) of the Condominium Act, 1998, do not apply to a dispute involving a Tenant.
In the course of the Decision, the Court also reviewed the negotiations between the parties and determined that no mediation had taken place and that no settlement agreement had been reached. The Court added that a Condominium Corporation, its directors, owners and occupiers, could not, in any event, reach an agreement contrary to the requirements of the Declaration. The Court said:
“Such an agreement would be outside the Condominium Act, 1998, s. 176. The legislation would continue to apply. The Condominium Act, 1998 s. 119(1) requires the condominium corporation, its directors, owners and the occupiers of the units to comply with the statute, the declaration and the by-laws… In this case, the tenant has refused to do so.”