The applicant condominium corporation sought leave to appeal an arbitral award that ordered it to pay liquidated damages to its former management company after terminating their contract.
The condominium had terminated the contract pursuant to s. 111 of the Condominium Act, 1998.
The arbitrator found that the liquidated damages clause survived the statutory termination.
The Superior Court of Justice granted leave to appeal and set aside the award, holding that the statutory right to terminate under s. 111 is unconditional and terminates all aspects of the contract, including the liquidated damages clause, in accordance with the consumer protection purpose of the Act.
