Samuel F. Zakhour

Following a trial where the plaintiff Condominium Corporation was substantially successful in collecting common expense arrears, the court determined the quantum and scale of costs.

The plaintiff sought $58,448.97, while the defendants proposed $32,000.

Applying section 85(1) of the Condominium Act, 1998 and considering the plaintiff's unaccepted Rule 49 offer to settle, the court awarded the plaintiff costs on a substantial indemnity basis, fixed at $50,000 inclusive of HST and disbursements, to be added to the liens registered on the defendants' unit.

The plaintiff condominium corporation brought a summary trial to determine the amounts owing under two liens registered against the defendants' unit for unpaid common expenses, charge-backs, and legal costs.

The defendants, who had a long history of conflict with the condominium board, disputed the charges and the validity of the liens.

The court found the liens were validly registered and upheld the common expense arrears and charge-backs.

However, the court disallowed the plaintiff's claim for compliance legal costs because the plaintiff had failed to attempt mediation as required by the Condominium Act.

The court fixed the total amount secured by the liens at $117,287, which included a 25% reduction in the legal fees claimed for the lien enforcement proceeding.