Legislative Newsflash Ontario - Condominiums: Be Cautious When Liening for Chargebacks - July 2020

A recent court decision, Amlani v. York Condominium Corp. No. 473, highlights the need for caution when condominium corporations are liening for chargebacks. The case involved a unit owner who smoked in his unit, causing complaints from neighboring occupants. The corporation sought compliance and added legal costs to the owner's common expenses based on an indemnification clause in the corporation's declaration. However, the court ruled that the costs could not be added without a specific order under subsection 134(5) of the Condominium Act. The indemnification clause was deemed inconsistent with the Act and had no effect. The court discharged the lien and awarded costs to the unit owner. The corporation appealed, but the Divisional Court dismissed the appeal. This case serves as a cautionary reminder for condominium corporations to seek legal advice and carefully consider the application of indemnification clauses.