In case there was a doubt in anyone’s mind, registering and enforcing condominium liens is not the only method available to condominiums wishing to collect arrears. Indeed, in a recent case, the Court of Appeal confirmed that condominium corporations can also sue for unpaid common expenses, the same way any creditor could for an unpaid debt.
It would be difficult to summarize the facts of the cases opposing Mr. Burdet to the small condominium corporation housing his many units. This case has been ongoing since at least 2009 and there are no less than 8 reported decisions on this legal saga, two of which by the Court of Appeal. The legal issue at the basis of this battle was whether the 18 storage units in the condominium basement were units with a vote or whether they were storage units without a vote. These units were described as “storage units” (without a vote) in the original declaration, which was later amended to show them as “industrial commercial units” (arguably with a vote). For what it’s worth, there is no water in these 18 basement units and they had been used as storage space for the first 11 years of existence of this condominium corporation. These units were eventually sold to Mr. Burdet (or to various entities controlled by him, directly or indirectly). With a vote per unit, he became the majority owner in this condominium corporation. He eventually made his way onto the board of directors and, for all intents and purposes, controlled the corporation and its board of directors, with dire financial consequences for the minority owners. The minority owners attempted to amend the declaration and brought oppression remedies in the past. An administrator was eventually appointed. When Burdet’s units fell in arrears, liens were placed on them and power of sale proceeding were instigated.
