The Kuhns sought declarations that charges on their condominium ledger, including special assessments and legal costs, were null and void.
They contested a special assessment (Special Levy) for purchasing shares in a private Alberta corporation, claiming it was ultra vires under the Condominium Property Act (CPA).
Issues:
Whether the Kuhns were "interested parties" under s. 67 of the CPA.
Whether the Special Levy and share purchase were prohibited investments under the CPA.
The authority of the Corporation to claim legal chargebacks from the Kuhns.
Court Findings:
Standing as Interested Parties:
Kuhns were deemed "interested parties" since they were unit owners at the time of the disputed conduct and still owned another unit in the resort.
Special Levy and Share Purchase:
The levy and share purchase were not considered investments but measures to maintain control over essential resort assets. Hence, they were not prohibited under the CPA.
Legal Chargebacks:
Legal costs incurred by the Corporation were not due to the Kuhns' actions but the Corporation’s own unreasonable conduct. Therefore, the chargebacks were deemed improper.
Conclusion:
The Kuhns' application partially succeeded. They were awarded $6,509.42 in reimbursement for improper legal chargebacks, but there was no determination on the validity of the Chargeback Provision.
Each party was ordered to bear its own costs due to mixed success in the application. No amount was specified.
