Owner Sues Condo Corporation Over Alleged Board Election Irregularities

A condominium unit owner commenced legal proceedings against the condominium corporation over concerns about board election irregularities and proxy improprieties. After the owner's preferred candidate for the owner-occupant position lost, he obtained a court order to produce and preserve the proxies. The corporation sought to obtain substantial indemnity costs from the owner, but the action was discontinued without the owner having to pay any costs. The Ontario Superior Court of Justice determined that the owner had rendered a service to the corporation and that the corporation had taken a "high-handed approach" and "dismissive attitude" in dealing with the owner. The Court concluded that the corporation was not entitled to costs on a substantial indemnity scale and was not entitled to any costs relating to the request to and preserve the proxies. This decision sends a message to condominium corporations to investigate any concerns raised about election irregularities.