Burlington condo owners ‘held hostage’ in crumbling building  Part 2
The Hamiltion Spectator
By Teviah Moro


Consultant's advice for structural problems

Demolition and construction of a new building:	$10–12 million
Inserting steel beams and columns to support concrete slabs:	$4.5 million
Improving concrete slabs with carbon fibre reinforced polymer:	$3.0 million
Temporary shoring/monitoring to last through litigation period:	$1.5 million

 
Budget woes
A December 2014 reserve fund study called for "substantial increases" to contributions to the reserve.

2013 contribution	$86,053
2014 contribution	$90,000
2015 contribution	$111,600
2016 contribution	$138,384
2017 contribution	$171,596

2016 monthly fees ranged from	$250.50 to $481.42
2011 monthly fees ranged from	$213.66 to $410.62

Source: Condo board notices

Who's suing whom?
2010: Halton Condominium Corporation No. 324 launches lawsuit against several parties.

Among the defendants are the City of Burlington, K.L. Hodges and his firm, Frontier Engineering, Megna Real Estate and Insurance Limited, Bruno Megna (deceased), and a numbered company associated with Megna.

"The Corporation is seeking $20,000,000.00 in damages from the named Defendants as a result of construction deficiencies, plus legal costs and any interest that may have accumulated."

Moreover, "all of the participating Defendants are now suing each other," correspondence from SmithValeriote Law Firm LLP to residents notes in 2011.

2nd lawsuit
2011: An individual condo owner launches another lawsuit against several parties, including his own condo corporation. Twenty-six unit holders are now suing under the guidance of Burlington-based Martin & Hillyer Associates.

Among the defendants are Halton Condo Corporation No. 324, Megna Real Estate and Insurance, estate of Bruno Megna, the numbered company, K.L. Hodges/Frontier Engineering, Wilson Blanchard Inc., City of Burlington, Coulter Building Associates,

Additionally, some defendants, who have denied allegations, have filed cross claims, shifting responsibility for the structural problems to each other.

Additional defendant
In a judgment heard in December 2012, an owner who purchased Unit # 402 in 2009, successfully had her real estate lawyer added to the second lawsuit as she claimed he was negligent in failing to tell her about paragraph 12 in the status certificate and he failed to provide proper and meaningful advice.

She claimed that if she knew about the structural deficiencies, she would not have bought the unit.

New Street grief
"A suggestion was made that we paint our balcony railings a lighter colour to give a better exterior appearance to the building. We know that we cannot have the work done from the balconies since they are unsafe and the railings in some cases have rusted right through, and in many cases, are no longer attached to the floor slab or to the building wall."
—2014 notice from property manager Wilson Blanchard Management Inc.

"(A board member) stated that the Corporation is able only to carry out normal operating items and repairs to the building, and that legal costs have severely eroded the Corporation's resources."
—Minutes from 2014 annual general meeting

"An owner asked why a contractor had attended the building with a boom truck to remove concrete from balcony slab edges. (The property manager) explained that an owner had emailed her a photo of the corner of a balcony slab edge, where a piece was in danger of imminent failure. Accordingly, Tritan Contracting was called on an urgent basis to remove the loose piece of concrete."
—Minutes from 2014 Annual General Meeting

"No Statements of Defence were filed by Walbrook Construction or H.R. Peele. It is understood that these Defendants no longer exist. In turn, every Defendant that filed a Statement also filed a 'Crossclaim,' holding another Defendant liable for the structural deficiencies. Restated, all of the participating Defendants are now suing each other."
—2011 letter to tenants from SmithValeriote Law Firm LLP

"The Corporation maintains Comprehensive All Risk Coverage on the property in the amount of $9,504,872.00. This amount is representative of the approximate cost to rebuild the entire corporation to the original 'as built' state in the event of a peril. This does not cover the building structural issues as currently identified."
—2011 letter to tenants from property manager Wilson Blanchard Management

"It is our opinion that the subject condominium building occupied by (the condo corporation) at 2411 New Street, Burlington was not originally constructed to the requirements of the 1965 National Building Code of Canada.

… It is also our opinion that prior to the building being converted to a condominium residence, the City of Burlington should have confirmed that the building complied with the 1997 Ontario Building Code …"
—2014 CCI Group structural slabs report prepared for
    SmithValeriote Law Firm

Rental on MLS

This 4th floor two-bedroom unit is on the market (2016) for rent at $1,195 a month plus hydro.


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