Case Overview:

• Parties Involved:

  • Plaintiff: 2512322 Ontario Ltd., owner of Unit 1 in a commercial condominium managed by Toronto Standard Condominium Corporation No. 2255 (TSCC 2255).
  • Defendants: TSCC 2255, its board members, and Duka Property Management Inc.

• Nature of the Dispute:

  • The plaintiff withheld common expense payments since 2019, citing grievances against TSCC 2255, including:
    • Lack of financial information and meeting notices.
    • Failure to maintain and repair common elements.
    • Misallocation of water charges to the plaintiff’s unit.
  • TSCC 2255 sought partial summary judgment to dismiss certain claims in the plaintiff’s statement of claim.

Key Legal Issue:

• Whether the plaintiff could withhold payment of common expenses due to disputes with TSCC 2255.

Court’s Decision:

• Justice Koehnen ruled in favor of TSCC 2255, granting partial summary judgment and dismissing the claims that sought to avoid common expense payments.
• The court held that:
  • Section 84(3)(b) of the Condominium Act, 1998 unequivocally prohibits withholding common expense payments, even when an owner has claims against the condominium corporation.
  • Public policy supports this interpretation to ensure consistent funding for the corporation’s operations.

Additional Findings:

• The plaintiff failed to provide evidence of actual financial losses due to the alleged overcharge of water fees.
• The court rejected the argument that the plaintiff’s disputes justified withholding payments.
• Summary judgment was appropriate since the central issue was a matter of law, not fact.

Costs:

• TSCC 2255 was awarded $23,772 in costs, payable by the plaintiff within 30 days.