01/08/2019 – Jurisdiction British Columbia
Part 67 published on 01/09/2019
Strata Corporation entitled to reimbursement of fees paid to President for building manager services. Proper procedures not followed in relation to conflict of interest.
While President of the strata corporation, the Defendant received payments from the strata corporation for building manager services (provided over the course of two months). The strata corporation brought a claim in Small Claims Court for return of such amounts.
The Small Claims Court first found that it had jurisdiction to deal with the matter, and that the Civil Resolution Tribunal did not have jurisdiction to deal with the matter.
The Court then determined that the strata corporation was entitled – under Section 33 of the Strata Property Act – to receive repayment of the said amounts paid to the President. The Court held that the Defendant had failed to comply with the “conflict of interest” procedures set out in Section 32 of the Strata Property Act in relation to the particular transaction. The Court also said:
While the Defendant may be disappointed with my decision, I would like her to know that I am cognizant of the value of the services she provided to the Strata Corporation on a gratuitous basis, for which the Strata Corporation should be thankful to her. However, as I noted earlier, she is not the only strata council member who provided services to the Strata Corporation. All strata council members exercise their council duties, or provide such other services, on a gratuitous basis, unless remuneration for such duties or services are specifically approved in accordance with the applicable provisions of the SPA, the Regulation, and/or the Bylaws.