Part 56 published on 01/11/16
Appeal dismissed. The developer had failed to call the first AGM within prescribed time limits; but there should be no penalty unless an owner has called the AGM
The developer had failed to call and hold the strata corporation’s first AGM within time periods required by section 16 of the Strata Property Act. However, the lower court determined that no penalty was payable by the developer (under Section 17 of the Act) because the AGM had not been called by an owner. [See Condo Cases Across Canada Part 53, February 2016.]
The developer appealed and the appeal was dismissed. The Court of Appeal said:
I am not persuaded that the chambers judge’s interpretation harms the remedial nature of s. 17 or diminishes an owner’s ability to bring an end to the developer’s failure to call the first AGM. Moreover, to impose a penalty in this case would be contra bonos mores: it would grant a reward when none is due.