Courts-section.134.costs

Section 134.(5) needs court orders —costs

On 03 May 2015, the board of directors of PCC # 231 had an information meeting with the owners.

The owners were told that the judge refused to give the corporation orders so there may be a special assessment of about $1,000 a unit. (The equivalent of just over two months maintenance fees.)

You would be correct to assume that the owners were not happy to hear this.

Court hearing on costs
Ontario Superior Court of Justice
393 University Avenue Road
Room 802
Justice Myers
Tuesday 19 May 2015

PCC 231 arguments
The applicants claimed $30,000 in costs and would waive any rights to Section 134.(5). The directors had no alternative but to submit an application. Seventeen residents complained about the respondents and one owner threatened to sue the corporation if no action was taken.

The board made many, many attempts to resolve the issue. The respondents were not interested in resolving this issue. An early settlement proposal was given to the respondents included restraining orders and $27,000 in costs.

Many unit owners were afraid of reprisal. The board wanted to get an injunction but it was refused. Mediation and arbitration not possible.

It was the respondents rigorous defence which caused this case to get so expensive. Astonishing that the respondents rolled the dice. Why? They must have an alternative motive. Easy to draw a conclusion. Pot of gold with the Human Rights case.

If there is blame, the scale must fall more on the side of the respondents. There should be costs allowance in this.

There was a formal offer to settle:
• sell the unit
• restraining orders
• $100,000 in costs
• the condo would waive Section 134.(5)

A very reasonable and consolatory offer.

The unit owners are personally responsible for the condominium's debts, $1,000 a unit. The respondents should pay a disproportionate amount of those costs.

Respondents arguments
Justice Myers has ruled that YCC # 231 is not entitled to costs. The respondents were also not successful. The unit has sold and will close at the end of June.

YCC #231 talks about good faith issues. The applicant's first law firm talked about the owners being responsible for damage and we asked for evidence but none was received. On October 29 they wanted $27,000 in costs but the respondents had no time to read the offer and respond. It was pay or else.

The respondents tried everything to settle. Offers were made. The condo corporation asked for $119,000, the respondents offered $20,000. Then they were going back and forth.

This case was getting out of hand. "What are we doing here?" $119,000. You can see how hard it was to settle. We had to challenge the condo's evidence. If we didn't fight, they would have got full costs.

The corporation could have tried mediation. The condo was aggressive in seeking a court application.

If there is costs in this case, the respondents should get it because of the aggressive manner of the corporation. "The whole case was about costs."

PCC #231 response:
The costs were getting out of hand because the respondents wanted to fight. A 134.(5) is not a typical corporation fight where a judge hears both sides. Unit owners will rarely fight because you are rolling the dice.

We want the corporation's costs from both law firms tied together.

Justice Myers: "Will not do that."