Facts

• A water leak from Soni’s unit, occupied by his brother Jayant Soni, caused $83,813.76 in damages to multiple floors.
• Soni’s insurer paid $50,000, the deductible under Alberta’s Condominium Property Act (CPA) Regulations.
• Condo Corp levied a Chargeback for the remaining $37,813.76, registered a Caveat, and withheld a clear Estoppel Certificate until payment.
• Soni paid under protest and later sought a court order declaring Condo Corp’s actions improper, plus damages.

Issues & Arguments

• Soni’s Position:
  • The CPA limits Condo Corp’s recovery to the deductible.
  • Condo Corp should have used its insurance but avoided a claim to prevent premium increases.
  • Filing the Caveat without a judgment was an improper prejudgment remedy.
  • No clear evidence of Jayant’s negligence.
• Condo Corp’s Position:
  • The prolonged leak (with mould and musty odors) showed negligence, violating Bylaws on unit maintenance.
  • Condo Corp’s insurance did not cover slow leaks, so no claim was possible.
  • The Chargeback was a valid contribution under the CPA and Bylaws.

Decision

• The Chargeback qualified as a "contribution" under CPA section 39, permitting the Caveat.
• Condo Corp’s Bylaws imposed liability for unit damage due to an owner’s failure to maintain their unit.
• Negligence was established, making Soni responsible.
• Application dismissed; Condo Corp acted lawfully.
• No specific costs were ordered in the judgment