Maria Dimakas

The Monitor in CCAA proceedings brought an unopposed motion to extend the stay of proceedings, approve a settlement agreement with a condominium corporation and another party, and approve its activities and fees.

The court found the settlement agreement reasonable and necessary, providing immediate benefits to stakeholders and a path to reducing a bond.

The court extended the stay to March 3, 2023, and approved the Monitor's activities and fees.

The court addressed costs following a summary judgment motion where the plaintiff, Toronto Standard Condominium Corporation No. 2051, largely succeeded in having three debt instruments (a promissory note and two mortgages) declared oppressive and significantly reduced in value against the third party, Georgian Clairlea Corporation ("Georgian").

The plaintiff sought costs as the successful party, while Georgian claimed contractual costs under the mortgages.

The court found the plaintiff to be the successful party and rejected Georgian's claim for contractual costs, citing Georgian's oppressive conduct as a "special circumstance" justifying deprivation of such costs.

The court awarded the plaintiff partial indemnity costs up to its November 2017 offer to settle and substantial indemnity costs thereafter, totaling $150,453.20, after a minor reduction for excessive pre-trial costs and unused expert reports.

The moving party, assignee of the developer, sought summary judgment to enforce three debt instruments against the respondent condominium corporation.

The condominium corporation argued the instruments were oppressive due to inadequate disclosure to purchasers.

The court found the disclosure regarding the service unit mortgage and parking unit mortgage was confusing and insufficient, breaching the reasonable expectations of the purchasers.

The court reduced the principal amounts of both mortgages to reflect fair value and reasonable expectations.

The court also found a promissory note for land transfer tax was void for lack of a borrowing by-law and oppressive as it circumvented the developer's statutory obligation for first-year budget deficits.

The court awarded the condominium corporation amounts for common expense arrears, a first-year budget deficit, and reserve fund payments, and declined to appoint a receiver.

Georgian Properties Corporation (GPC) brought a motion to strike the factum of Toronto Standard Condominium Corporation No. 2051 (TSCC) in its entirety or in part, arguing that it raised issues outside the scope of the pleadings, contrary to a prior settlement agreement and court decisions.

The court found that the majority of TSCC's factum was proper, as many arguments related to the adequacy of disclosure or the exorbitant nature of mortgages, which were within the existing pleadings.

However, specific paragraphs alleging new claims, such as breach of agreements of purchase and sale or broader breaches of fiduciary duty, were struck.

The court denied GPC's request for the summary judgment motion to proceed before a different judge, citing efficiency and the judge's ability to remain impartial.

GPC's motion was deemed largely unnecessary, and GPC was ordered to pay TSCC's partial indemnity costs of $9,134.92.

This appeal concerns a statutory interpretation dispute regarding the priority of a condominium corporation's lien under the Condominium Act, 1998.

The appellant condominium corporation obtained a compliance order and costs award against a unit owner in February 2011.

The owner defaulted on payment of the costs in March 2011.

The corporation added the costs to common expenses in August 2011 and registered a lien certificate in December 2011.

The respondent mortgagee held a first mortgage on the unit.

The central issue was whether the corporation's lien lost priority over the mortgage because it failed to register the lien certificate within three months of the default, as required by section 85(2) of the Act.

The court held that the default triggering the three-month perfection period occurred when the owner failed to pay the costs order in March 2011, not when the owner failed to pay the claimed common expenses in September 2011.

Accordingly, the corporation's failure to register within three months caused the lien to lose priority.