Background: The Owners, Strata Plan NW 2364 and The Owners, Strata Plan NW 2301 shared recreational amenities for over 30 years based on a 1985 covenant. In March 2019, Strata Plan NW 2364 notified Strata Plan NW 2301 it would no longer contribute to the shared costs. This led Strata Plan NW 2301 to petition the Supreme Court for enforcement of the covenant or recognition of a post-incorporation contract.

Legal Arguments/Issues: Strata Plan NW 2364 argued that determining the issue of a post-incorporation contract by petition was improper. They claimed the judge granted relief on an unpleaded basis and used an incorrect legal test. They believed the issue should have been initiated by a notice of civil claim and that the pleadings inadequately suggested a post-incorporation contract existed.

Held: The Court of Appeal dismissed the appeal and upheld the Supreme Court’s decision. It found the petition appropriate and the pleadings sufficient. The court ruled a post-incorporation contract existed, based on the parties' consistent conduct over 30 years, reflecting the 1985 covenant terms. The judge’s findings were deemed correct.

Costs/Damages Awarded: The appeal was dismissed with costs awarded to The Owners, Strata Plan NW 2301. The specific amount of costs or damages was not detailed in the document.