07/03/2024– Jurisdiction Alberta
Part 89 published on 01/03/2025
Condominium corporation entitled to recover portion of insured loss beyond corporation’s deductible
The Applicant disputed a chargeback imposed by the condominium corporation for water damage exceeding the corporation’s deductible. The condominium corporation had decided not to make a claim on the corporation’s insurance for recovery of the portion of the loss beyond the corporation’s deductible. The owner paid the corporation’s deductible, but refused to pay the balance (in excess of the deductible). The corporation registered a caveat against the owner’s unit for the balance. The owner ultimately paid the balance, and then asserted a claim for recovery of that amount.
The Court held that the corporation was entitled to register the caveat for recovery of the cost to repair the damage beyond the deductible because the damage resulted from a breach of the by-laws (by the owner). The Court said:
Finally, I wish to state that I do not think that this result upsets or disturbs the fine balance between what should be the responsibility of an individual unit owner and the responsibility of all the unit owners (as represented by the condominium corporation). The cost of repair to common property caused by a breach of bylaws by an individual owner should not be the responsibility of all the unit owners, but should be the responsibility of the unit owner responsible for the damage; and an in rem charge protecting the collective is warranted if the bylaws so provide.
Soni v Condominium Corporation No 072 7129 (Spirit Ridge), 2025 ABKB 140