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Ravells v. Metropolitan Toronto Condominium Corporation No. 564 - 2020 ONCAT 36 - 2020-10-08
Corporation:
RMTCC 564
Date:
2020-10-08
Summary:
In the case of "Ravells v. Metropolitan Toronto Condominium Corporation No. 564" (2020 ONCAT 36) the Applicant, filed a motion asserting that the Respondent's board of directors lacked quorum due to some members failing to complete mandatory training, and, therefore, lacked authority to direct a representative in an ongoing Stage 3 hearing. The Respondent argued that the Tribunal lacked jurisdiction over issues related to the board's constitution and governance. After analyzing the case, the Member found that the board did indeed lack quorum due to two members failing to complete training within the prescribed time. The Member ordered the Respondent to provide documentation confirming the board's valid constitution or quorum when authorizing representation. If this documentation was not provided by the specified date, the Stage 3 hearing would proceed without the Respondent's participation.
Under:
CAT Decisions - Motion Order
Verdict:
In this case, the Applicant challenged the authority of the Respondent's board of directors, claiming that certain members were disqualified for not completing mandatory training, which left the board without quorum. The decision highlights that failure to meet training requirements can result in immediate disqualification of directors, causing a lack of quorum, and disputes related to board constitution and governance might fall outside the jurisdiction of the Condominium Authority Tribunal. It emphasizes the importance of complying with training mandates and the need for a properly constituted board for effective decision-making within a condominium corporation.
Takeaways:
The Applicant claimed that certain board members were disqualified for failing to complete required training, thus leaving the board without quorum.
The Respondent argued that the Tribunal could not address issues related to the board's constitution and governance.
The Member found that two board members had indeed been disqualified for failing to complete mandatory training, resulting in a lack of quorum.
The Respondent was ordered to provide documentation confirming the validity of its board's constitution and quorum or proof that it had quorum when authorizing representation.
If the Respondent failed to provide the required documentation by the specified date, the Stage 3 hearing would proceed without its participation.
Recommendations:
Maintain Compliance with Legal Requirements: Condominium boards and their members should be vigilant in ensuring they comply with all legal requirements, including mandatory training as stipulated in the Condominium Act, 1998. Failure to adhere to these requirements can have serious consequences, including disqualification from the board. Board members should proactively track training deadlines and ensure they are met to maintain their eligibility.
Clear Documentation and Record-Keeping: Condominium corporations should maintain accurate and up-to-date records of their board members, including their training status, appointment or election dates, and any changes in board composition. Accurate documentation is essential for resolving disputes and ensuring the legitimacy of the board's quorum. This documentation should be readily available for reference when needed.
Understand Jurisdiction and Seek Legal Advice: Parties involved in condominium disputes, such as directors and condominium corporations, should have a clear understanding of the jurisdiction of relevant legal bodies like the Condominium Authority Tribunal (CAT). If disputes involve issues beyond the tribunal's jurisdiction, it is advisable to seek legal advice and pursue remedies through appropriate legal channels, such as the Superior Court. Understanding the scope and authority of the relevant legal body is crucial for efficient and effective dispute resolution.