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McLaughlin v. Brant Standard Condominium Corporation No. 75 - 2022 ONCAT 16 - 2022-03-07

Corporation:

MBSCC 75

Date:

2022-03-07

Under:

CAT Decisions - Decision
Adequacy of Records
Fees, Costs, Penalties

Summary:

This case involves a dispute between the applicant and the respondent over the provision of certain requested records. The applicant requested electronic copies of several records under the Condominium Act, and although some records were provided during the hearing, others were not provided due to a claimed conflict of interest. Consequently, the condominium corporation was found to have refused to provide records without a reasonable excuse. The Condominium Authority Tribunal ordered a penalty of $2,500 and awarded the applicant costs $200 representing fees paid to the Tribunal. This case serves as a reminder that condominium corporations are obligated to provide certain records to unit owners and that any refusals to do so must be based on a valid reason; otherwise, a penalty may be imposed.

Verdict:

In this case, the respondent, Brant Standard Condominium Corporation No. 75, was found to have refused to provide requested records without reasonable excuse resulting in a penalty of $2,500 and costs of $200 being awarded to the applicant by the Condominium Authority Tribunal. The case serves as a reminder that condominium corporations must comply with their obligation to provide requested records within a reasonable time frame and that any refusal to do so should have a valid and reasonable excuse.

Takeaways:

Records Provision: Condominium corporations have an obligation to provide requested records to unit owners in a timely manner. Refusing to provide records without a reasonable excuse can result in penalties imposed by the Condominium Authority Tribunal.

Reasonable Excuse: Condominium corporations should not refuse to provide records based on conflicts of interest or to protect their business relationships. The Act emphasizes that the affairs of a condominium corporation should be transparent and open to scrutiny.

Penalties and Costs: The Tribunal has the authority to impose penalties and award costs if a corporation is found to have unreasonably refused to provide records. In this case, the respondent was ordered to pay a penalty of $2,500 and the applicant's costs amounting to $200.

Recommendations: 

Compliance with Record Requests: Condominium corporations should ensure they comply with all record requests from unit owners within a reasonable time frame. It is important to review and provide the requested records in accordance with the obligations outlined in the Condominium Act.

Transparency and Avoiding Conflicts of Interest: Condominium corporations should prioritize transparency and avoid conflicts of interest when dealing with record requests. Refusing to provide records based on conflicts of interest or to protect business relationships may lead to penalties and legal consequences.

Understanding Penalties and Costs: Condominium corporations should be aware of the potential penalties and costs associated with unreasonably refusing to provide records. It is essential to understand the provisions of the Condominium Act, particularly Section 144, which allows the Tribunal to impose penalties and award costs to the applicant.

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