Costs, Costs, Costs… Another Court Decision Considers Recovery of Legal Costs

The blog discusses the recent decision of Metropolitan Toronto Condominium Corporation No. 596 v Best View Dining Ltd that provides direction for condominiums to recover legal expenses by way of lien. The case involved a mixed-use condominium, a commercial unit owner, and the commercial unit’s tenant, who had caused excessive noise and activities disturbing the residential occupants. The Court allowed the condominium to add the incurred legal costs associated with enforcing the compliance order as common expenses recoverable under Section 85(1) of the Condominium Act. The decision highlights the importance of indemnification provisions in the governing documents, which allow a condominium to chargeback enforcement costs incurred to the non-compliant owner.