Part 53 published on 01/02/16
Condominium corporation did not properly allocate common expenses; however, there was no oppression. Corporation also failed to enforce Declaration
PCC 492 is a commercial mall. The mall consists of a shopping centre on the first floor, and offices, schools and clinics on the second and third floors. Within the mall, there is a food court area consisting of eight separate units and a seating area for the food court patrons to use. The applicant owned 5 of the 8 food court units, and alleged that the condominium corporation had improperly allocated and charged certain expenses to the owners of the food court.
The Court agreed that the condominium corporation had overcharged the food court owners for common expenses over a number of years. The Court ordered the condominium corporation to re-pay those amounts to the applicants. However, the Court found that the condominium corporation’s actions were not oppressive. The Court said:
I do not find PCC 492 to have unjustly ignored or treated the applicants’ interests as being of no importance. PCC 492 is charged with taking the interests of all unit owners into consideration. As the applicants had remitted payment towards expenses charged under prior separate Food Court area budgets for years, there was no “change of (course of) conduct in management” which dramatically altered the relationship between the applicants and PCC 492.
Accordingly, I am not satisfied that PCC492 conducted itself in a manner that would be considered oppressive or unfairly prejudicial to the interests of the applicants.
The Court also held that the corporation had failed to properly enforce the owner’s exclusive rights to sell dim sum; and ordered the corporation to advise all owners of those rights. In the event of further violations, a further application could be brought to Court (against the violator).