01/06/2020 – Jurisdiction British Columbia
Part 71 published on 01/09/2020
Court declines to order winding up of strata corporation; but orders appointment of administrator
This is a three-unit strata corporation. Mr. Stewart owns the ground floor commercial unit. The two residential units on the second floor are essentially owned by one owner (Mr. Marten). Mr. Marten owns one of the residential units personally and the other through a corporation that he controls.
As noted by the Court, the two owners “are at loggerheads and have been for a very long time”. Mr. Stewart petitioned for the winding up of the strata corporation, primarily based on the allegation that he has no effective say in the affairs of the corporation.
Mr. Stewart was also in arrears in payment of his common expenses. A lien had been registered against his unit and the strata corporation had brought an action for enforcement of the lien.
The Court held that an order winding up the strata corporation was “neither a viable nor reasonable solution in this case” and declined to order such. The Court did order the appointment of an administrator. The Court said:
If nothing else, an administrator would act as a buffer between the Owners to allow the Strata to function with some degree of normalcy.
Finally, the Court held that the “strata fees were properly assessed” and accordingly ordered enforcement of the strata corporation’s lien against Mr. Stewart’s unit on various terms.