The applicant, a condominium unit owner, brought a motion seeking a declaration that a new rule (Rule 19) enacted by the respondent condominium corporation's board of directors was invalid.
Rule 19 prohibited short-term leasing (less than six months) and deemed any person involved in such use a trespasser.
The applicant argued that Rule 19 was inconsistent with Article 4.9(e) of the condominium's declaration, which stated that no provision should limit an owner from leasing their unit for "any period of time whatsoever." The applicant also contended that paragraph 7 of Rule 19, deeming occupants trespassers, was inconsistent with the Condominium Act.
The court found that the board's interpretation of the declaration, which did not expressly permit short-term leasing, was unreasonable given the clear wording of Article 4.9(e).
Consequently, Rule 19 was declared invalid for being inconsistent with the declaration by prohibiting short-term leasing and imposing a minimum lease term.
Paragraph 7 was also found inconsistent with the Condominium Act, as owners cannot be deemed trespassers.