Injury Law Group Blog

A unit owner successfully sued the condominium corporation after a lien was placed on his property for unpaid repair costs related to a plumbing issue. An appeal was filed on behalf of the corporation, which resulted in the Divisional Court ordering a new trial.

The condo corporation claimed that the plumbing issue the unit owner was experiencing was caused by grease that was originating from the owner’s unit.

During the initial trial, the judge ruled in support of the unit owner on the basis that the condo corporation did not prove that the source of the problem was coming from the unit itself.  

The Divisional Court found the ruling by the trial judge to be problematic, as it was the unit owner’s obligation to “establish that he was not the source of the plumbing blockage.”

Furthermore, the trial judge had not considered evidence that was given by the condo corporation’s board of directors. This evidence contained the reasons for concluding that the plumbing issues were caused by the unit owner and not the condo corporation.  

A recent decision by the Ontario Court of Appeal acknowledged that the Business Judgement Rule applies to condominiums. The Business Judgment Rule allows the courts to give deference to Board decisions if:

• the Board acted honestly;
• in good faith;
• and exercised the care, diligence and skill, a reasonable person would use in a similar situation.

To read the full article, click here.