The minority unit owners of a commercial condominium brought an action against the majority unit owner, who also served as a director and officer, alleging oppressive conduct under s. 135 of the Condominium Act, 1998.
The majority owner used his voting control to direct condominium contracts and payments to a related corporation, ETRE, without declaring his conflict of interest, and charged the condominium for personal litigation and construction costs.
The court found the majority owner's conduct to be oppressive, unfairly prejudicial, and in breach of his fiduciary duties.
Due to the structural fault in the condominium's voting rights and the ongoing deadlock, the court ordered the termination of the condominium corporation under s. 128 and appointed a receiver to sell the assets.
The court also resolved various financial claims, ordering the minority to pay common expense arrears while dismissing most of the majority owner's claims for penalty charges, promissory notes, and time charges.