Hadani v Toronto Standard Condominium Corporation No. 2095, (ON SCSM)
Decision Date: June 30, 2016
http://canlii.ca/t/gsx74
Ruling on Costs
Decision Date: August 24, 2016
http://canlii.ca/t/gtm75
Mr. Hadani owns a penthouse unit in TSCC No. 2095. Sometime before October 2013 flooding occurred in the unit below his. The Corporation determined that the source of the flooding was a leak from the washing machine in Mr. Hadani’s unit. In October 2013 the Corporation place a lien in the amount of $16,600 on the unit to cover the cost of the damage. The lien was paid by Mr. Hadani’s mortgagee. In this Small Claims Court action Mr. Hadani seeks a return of the lien plus interest, on the grounds that the flooding had nothing to do with his washing machine.
Deputy Justice Marr reviewed the evidence and found that, on the balance of probabilities, the flooding was indeed caused by Mr. Hadani’s washing machine. The Corporation’s actions were not unreasonable and he dismissed Mr. Hadani’s action.
Justice Marr made a subsequent ruling on costs. The Corporation asked for costs of $30,823 on a full indemnity basis, and $2170 in disbursements. Normally an award of costs in Small Claims Court shall not exceed 15% of the amount claimed, unless the court considers it necessary “in the interests of justice” to penalize unreasonable behaviour. The Corporation argued that Section 85 and Article 7.1 of the Condominium Act entitles them to seek full costs, and that Mr. Hadani “unreasonably prolonged” the proceedings. Justice Marr disagreed; just because Mr. Hadani’s arguments were unsuccessful, does not mean that they were unreasonable.
Justice Marr awarded $2490 costs to TSCC No. 2095 (15% of $16,600) and reduced disbursements to $600.
Comment: To quote the judge, “A cost claim that is almost twice as much as the amount sought by the Plaintiff in damages is not proportionate and accordingly is not fair or reasonable.”