Owners Challenge Condo Corporation’s Authority to Enter into Agreement for Bulk Television and Internet Services

The recent case of Zordel v. MTCC No. 949 involved a dispute between a condominium corporation and a couple of unit owners over the corporation's authority to enter into an agreement with a new service provider for bulk television and internet services. The applicants claimed that the corporation did not have the jurisdiction to enter into the agreement and require unit owners to pay for such services as common expenses without allowing owners to opt-out. However, the court rejected these arguments and upheld the corporation's authority to enter into the agreement and include the costs in common expenses. The court also dismissed the applicants' claim that the corporation was required to obtain prior approval of the unit owners before entering into the new agreement. In condominiums where the declaration or by-laws authorize the corporation to enter into bulk telecommunications agreements and to include the costs in common expenses, individual unit owners may lose their freedom of personal choice as to services supplied to the units. However, the corporation may be able to negotiate more favorable contract terms than individual owners would be able to obtain.