Posts Tagged ‘ condo law

Court Not Keen on Second-Guessing Condo Board Decision

In the recent Alberta case of  Dykun v. Cravenbrook Condominium Corporation No. 032 1893, the court of Queens Bench  demonstrated its willingness in deferring to the ultimate decision making power of a Condominium Corporation’s board of directors.

In this case, the Condominium Corporation in question had been irresponsibly managed in the past. The reserve fund, which is required by law to maintain funds necessary to pay for repair and replacement costs was greatly diminished when $31,000 dollars was siphoned off to pay for operating expenses unrelated to repairs or replacement. This was also in direct contravention to the Condo Corporation’s by-laws.

When a new management team was put in place, they realized the dire financial situation that the Condo Corporation was in. Only $238.00 remained available to pay for operating expenses and $32, 000 dollars worth of expenses was owed. Moreover, the reserve fund was $31,000 short as a result of the previous management team’s misappropriations. Read more

 
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