Part published on 01/01/70
Shared facilities committee has authority to make most decisions respecting shared facilities
This was an appeal from a decision of an arbitrator relating to the rights of the parties under the terms of a Shared Facilities Agreement governing certain shared recreational facilities, including a recreation center, a swimming pool, tennis courts and a marina. The key point of the dispute related to the authority of the shared facilities committee which was established under the terms of the Shared Facilities Agreement between the condominium corporations. One of the condominium corporations asserted that all of the committee’s decisions required ratification by each condominium’s board of directors. The arbitrator did not agree. The arbitrator held that the committee had the independent authority to manage the shared facilities.
On appeal, the Court upheld the decision of the arbitrator, subject to the following proviso. The Court noted that certain decisions specifically required approval of each condominium corporation under the terms of the Shared Facilities Agreement. The Court therefore confirmed that the authority of the committee was subject to these specific restrictions contained in the Shared Facilities Agreement.
[Editorial Note: It seems to me that the committee’s decision-making authority would also have to be subject to any provisions of the Condominium Act requiring the involvement of the owners of the units in the condominiums. In my view, the Shared Facilities Agreement would have to be subject to the rights of owners under the terms of the Condominium Act.]
The Court also varied the arbitrator’s decision on costs. The Court said that the arbitration agreement between the parties stated that the total cost of the arbitration was to be divided equally among each of the seven participating parties.