Harry Herskowitz

The parties agreed to the costs of the appeal.

The Court of Appeal awarded costs to the respondent in the agreed amount of $15,000 inclusive of disbursements and taxes.

The appellant condominium corporation appealed the dismissal of its application seeking a declaration that a by-law and warranty agreement entered into by the declarant-appointed board were invalid.

The agreement limited the declarant's liability for common element deficiencies to the statutory warranties under the Ontario New Home Warranties Plan Act.

The Court of Appeal dismissed the appeal, finding that the by-law was within the board's broad authority under section 56 of the Condominium Act, was not contrary to the Act or the declaration, and was not unreasonable.

The court held that the initial directors acted lawfully in organizing the condominium's affairs as anticipated by the declaration and disclosed to purchasers.