Can Enforcement Costs be Charged Back to Owners?

Condominium corporations are responsible for enforcing governing documents against owners. Charging back legal costs to non-compliant owners has been common practice, but a recent case in the Ontario condo industry raises questions about its permissibility without a court order. The case, Amlani v. York Condominium Corporation No. 473, highlights the need to act reasonably and review indemnification provisions in governing documents. The case involved smoke migration issues and the condo corporation's attempt to chargeback legal costs. The Court found the corporation's conduct unreasonable and oppressive, ruling against the chargeback. However, properly worded indemnification provisions and non-oppressive tactics can still allow compliance and enforcement costs to be charged back as common expenses.