Condo Law Digest – March 2016

United Hotels Company of America Stock.jpegMetropolitan Toronto Condominium Corporation No. 673 v St. George Property Mgm’t Inc.
Decision Date: February 16, 2016

In 2013, the corporation was sued by an owner (673830 Ontario Ltd.) who demanded a share of the funds from an expropriation payment. The corporation had earmarked these funds for roof repairs. The corporation was successful, but 673830 Ontario Ltd was granted an appeal, arguing that the status certificate provided before purchase was misleading. (I wrote a summary of the original case in the Condo Law Digest of September 2013; the decision of the appeal was not reported.) The corporation’s fees and expenses came to just over $97 000.

In this action, the corporation moves for a summary judgment of $97 000 against St. George Property Mgm’t for breach of contract. They argue that the status certificate St. George provided to 673830 Ontario Ltd. was inaccurate, and that because of this, the corporation incurred costs. The status certificate did not mention the funds anticipated from the expropriation, the plan to replace the roof, nor anticipated costs of the necessary repairs. Justice Perell found that the status certificate was non-compliant and granted summary judgment.

Comment: Property management companies have a responsibility to ensure that status certificates are accurate and up-to-date.

Williams Estate v Carleton Condominium Corporation No.66, 2016 ONSC 786
Decision Date: Feb 2, 2016

Last fall the Williams Estate applied to amend their claim against CC No. 66 for water damage to the estate’s condominium unit. The application was successful and no costs were awarded to either party. (I wrote a summary of the original case in the Condo Law Digest of October 2015.) The corporation appealed unsuccessfully. In this decision, Justice Beaudoin awarded the Williams Estate costs of $70000. The estate had sought costs on a substantial indemnity basis and disbursements of about $9400 total.

Comment: One can only hope that the parties settle this matter before their legal costs balloon out of control.

About the image:

Not a status certificate, but a stock certificate. By Unknown, Public Domain,