Condo liable when superintendent assaults visitor

As the deterioration of society supposedly continues and with municipal election season rapidly approaching (with its related canvassing), the temptation to physically remove unwanted visitors at your condo building is probably reaching its peak.

While condominiums are increasingly viewed as a secure sanctuary from the outside world, protected by heavy doors, security and staff, a recent decision of the Ontario Superior Court of Justice sends a warning about manhandling unwelcome guests.

At issue in the case of Jia v. TSCC 1479 is an ugly assault and battery perpetrated by a condominium superintendent against a visitor.  The case offers a number of important lessons for condo boards and managers.

Some of the highlights of the judge’s decision-making process and her findings are set out below. The paragraph numbers are as they appear in the court’s written decision. At the end, we offer some suggestions to help keep your condo out of danger.

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HST is painful for condos: The Proof (Part 1)

One overlooked but painful way in which the HST adversely affects condominium corporations is the fact that the maximum fee to issue a status certificate is fixed by law at $100 taxes included.

This fixed fee is set out in section 18(2) of O. Reg. 48/01 under the Condominium Act, 1998 which provides as follows:

The fee that a corporation may charge for providing a status certificate, including all material that is required to be included in it, shall not exceed $100, inclusive of all applicable taxes.

So how does this shake down in terms of dollars and cents?

A status certificate issued on June 30, 2010 that was subject to 5% GST would net the condo corporation $95.24.

That same certificate issued on or after July 1, 2010 that is now subject to 13% HST would net the condo corporation about $88.50, a difference of $6.74 from before July 1.

There’s no question that the cost of preparing a status certificate has not become less expensive, so it’s equally clear that condo corporations are obliged to suck up the difference. This can be painful for larger corporations that issue many dozen status certificates each year.

This regulation has not been amended to account for the introduction of the HST and its operation is unfair. A change is required immediately unless the Ministry of Finance wants to create another cockameme rebate program, this time to provide every condominium corporation in Ontario with a small rebate to make up a small fraction of the actual loss incurred on each and every status certificate issued.

My suggestion: In section 18(2) of O.Reg. 48/01 (above), replace the word "inclusive" with "exclusive." The change could be made in as little as 30 days if people in power put their minds to it. Seeing as how this amendment would actually increase tax revenue, it's astonishing why this has not already been done.

That aside, we’re almost two months into life after HST. How’s it working out for your condo corporation so far?

Best of the blogosphere for July 2010

Despite the hot weather and summer holidays, there was still some dynamite stuff in the blogosphere. Here are our picks for some of the best. 

Dispute Resolution Procedures for Condos & HOAs -- Lisa Magill of the Florida Condo & HOA Law Blog shares some tips to help turn common homeowner frowns upside down. J

The Potential for Huge Liability and Murphy’s Law -- Batten down the hatches! With natural and man-made disasters abound, the Community Associations Considerations Blog reminds us that not being prepared for the worst is not being prepared at all.

Failing To Obtain Regular Appraisals Can Hurt Associations After A Large Loss -- Florida lawyer Corey Harris observes that too many condominiums fail to regularly update their insurance appraisals.   Ontario condos should take heed – your pre-July 2010 appraisal is now 8% too low thanks to HST.

Down Economy Exacerbates Strife Within Community Associations -- Although lawyers can't reduce the economic difficulty facing homeowner associations and condos, Daniel Zimberoff at the Northwest HOA and Condo Law Blog has tips to help avoid unnecessary conflict within homeowner communities during tough times.

The Law of Insubordination -- Not sure when employee insubordination amounts to just cause for dismissal? Toronto labour and employment lawyer Michael Fitzgibbon summarizes the state of the law in this sometimes vexing legal area.  

How Does Subrogation Work? -- Chicago construction lawyer Joshua Glazov takes a crack at the answer and offers examples in both the insurance context and the construction financing setting.

The Condo Pre-Delivery Inspection (PDI): What to Expect & Tips -- The bloggers at livehigh.com remind us that doing a proper PDI requires more than just checking if the unit has four walls, ceiling and floor. Take your time and be thorough!

Did we miss anything?  Let us know by submitting a comment below.

Happy Friday the 13th.  Tell your building super not to walk under any ladders and remind owners to lock up their black cats for the day.

Microblog posts to 7/30/2010

Despite the great weather we’re having this summer, there’s lots of court decisions and other news to report on.  Here's some of the best to ponder over while enjoying the Civic Holiday long weekend (or "Simcoe Day" for those of you celebrating in the City of Toronto).

ONHRT defers unit owner's human rights case pending completion of corporation’s Condo Act arbitration process: http://bit.ly/cBjTP6

Let the venting begin! Ontario Government launches condo owners' survey online: http://bit.ly/aIgO3N

ON Govt seeks input on proposed "new policy framework" for Tarion’s Major Structural Defect Warranty: http://bit.ly/bX6t5o

Visited Goderich land titles ofc during my G20 "escape." Only 7 condo corps in all Huron County. Not enuff work for me to relocate there :(

On my desk: Condo corp pays cost to remediate unit used as grow-op. If owner doesn't repay that cost, condo will lien, seize and sell unit.

Let the good times roll. NY Observer: We Officially Live in the Age of the Condo - http://bit.ly/dqIL44

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10 reasons why condos should get legal advice about warranty claims

As the second part of our series of posts on new home warranty claims by condo corporations, we discuss why condos are better off seeking proper legal advice before making warranty claims for construction deficiencies.

Dealing with construction deficiencies is one of the largest and most critical tasks that the board of any new condominium must face in the first few years. It is therefore surprising to find that when it comes to dealing with construction deficiencies in the common elements of new condominiums, most condo boards simply start and follow the claims process under the Ontario New Home Warranty Plan (“Tarion”), a program that is notoriously ineffective, unresponsive and unsatisfactory when it comes to so many common issues faced by new condominiums.

Even more surprising is that condo boards often embark on the Tarion claims process without first asking the corporation’s lawyer to outline the pros and cons of proceeding with a claim to Tarion rather than commencing a lawsuit in court to recover damages for construction deficiencies. In fact, many corporations pursue much of the Tarion warranty claims process without the help of a lawyer at all, simply because it is not mandatory to use a lawyer for such cases.

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Changes to Tarion warranty: What condo directors and managers need to know

123In addition to heat waves and holidays, this July brings important changes to coverage for new condominium projects under the Ontario New Home Warranty Plan, better known as Tarion. There is also news that additional changes to the warranty plan are being considered.

In this entry, we will cover new regulations now in force that affect the Tarion warranty. In a separate entry, we will discuss why condo corporations need to make better use of their lawyers when it comes to dealing with construction deficiency issues.

For the hat trick, our third entry on new home warranty coverage will feature Tarion’s call for submissions to their public consultation about the major structural defect warranty. Anyone wishing to get started on this topic now can get the details here. An August 12 deadline for submissions is looming.

Let’s start with the new regulations that are effective immediately.

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Best of the blogosphere for June 2010

Here, for your early summer reading pleasure, are some of the most thought-provoking pieces from the condo law blogosphere last month. 

Community Needs Cosmetic Surgery -- Mike Inman of the Virginia Condo & HOA Blog suggests a good thought process for boards to follow in deciding whether and how to conduct renovations at their complex.

How to Effectively Run a Board Meeting -- Are you looking for a way to shorten those agonizing board meetings that go nowhere and don’t end?   Try some of the tips offered by Ashley Yorra of Vial Fortheringham and bring order to chaos.

Can Owners View Draft HOA Meeting Minutes? -- The answer is not cut and dry, according to this article on LeClairRyan’s Virginia Community Association Law Blog.

When the Board Should Really Call the Association Attorney – Part I --In a two part series, Donna Berger provides helpful examples about when to call the lawyers. Part II is here.   Don’t be penny wise and pound foolish!

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Microblog posts to 6/20/2010

Welcome to this special "G20 - Get the hell out of Toronto" collection of microblog posts.

Seeing as how downtown Toronto will be "no man's land" for much of the week and all weekend, now seems as good a time as any to skip town and take some holidays.  I'll see you next week.

For those of you "working from home" this week, here's some fun reading.  Recent big topics include Bill 168 (Workplace violence and harassment), human rights, smoking and, of course, the big summit itself.

Spoke with Jennifer Yang at @TorontoStar about the impact of#G20 on condos in #Toronto. Follow @Star_G8G20 for news and visit their blog.

Just spoke with @JeffreybGray, law reporter at @Globeandmail, about our firm's preparations for the #g20 summit and a bit about condo law.

Closing a real estate deal in Toronto on June 25? You might want to change the closing date because of #G20: http://bit.ly/aYOw9g

Toronto Councillor warns downtown condos to check that their insurance covers damage from civil unrest before #G20 -http://bit.ly/aPoz4l

RT @LizMo: Bah, security gates going up around my condo for the G20, the condo board "strongly suggest getting away for the week."

Barbarians at the gates! Toronto waterfront condos considering their own #G20 summit fences: http://bit.ly/d92q6Z (via @metrotoronto)

Toronto condo in the "dmz" braces for chaos: RT @Star_G8G20: A first-person account of life on the #G20 barricades: http://tiny.cc/zai5v

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Court clarifies full costs recovery provision

A recent Ontario Superior Court decision clarifies how to quantify the “additional actual costs” incurred by condo corporations in obtaining compliance orders under section 134 of the Condominium Act, 1998.  

In MTCC 985 v. VanDuzer, the corporation was successful in obtaining a compliance order requiring the unit owner to remove a gazebo erected by an owner on exclusive use common elements.

Having decided the case in favour of the condominium corporation, the Court said the following about costs:

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