The CAT Rules on Parking Dispute

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The Condominium Authority Tribunal (CAT) has released a few decisions related to parking issues in condominiums in the last six months. We summarized one of the previous decisions in post last month. The CAT has released another one this month that is interesting in what is says about rule enforcement, delays in enforcing by condominiums, and the available remedies to condominiums.

In a recent case the tenant was parking a motorcycle beside the parking space where he parked his car. The space where he parked the motorcycle was not a parking space. The condominium informed him that he was prohibited from parking in the area as it was contrary to the rules, but the tenant refused to move the motorcycle. The condominium started a case with the CAT. The tenant did not participate, but the landlord did participate.

Rule Enforcement

The CAT first reviewed the rules to determine if there was a violation, and if so, if there were any reasons it should not be enforced in the case.

The condominium had a rule that prohibited owners from placing, locating, keeping, installing, or maintaining any item on the common elemens. The rule authorized the condominium to remove any item left on the common elements by an owner and store the items at the owner’s expense. The CAT determined that the tenant violated the rules by parking the motorcycle on the common elements. The landlord did not dispute the tenant was violating the rules by parking his motorcycle in the area next to his car.

The tenant argued that parking his motorcycle in the spot did not violate a fire safety rule, contravene the by-laws, or impede access to the property, so he should be able to continue parking the motorcycle in the space. The landlord supported the tenant’s position. The condominium conceded that it was not a fire safety issue and did not impede access. The condominium argued the tenant parking his motorcycle in the space was a violation of the rules.

The tenant and landlord also argued that the tenant should be able to park in the space as he had been doing so for many years. They argued that the rule was unreasonable and should not be enforced. They also argued that the condominium’s failure to enforce the rule for many years prevented it from doing so now. The CAT disagreed. The rule was not, on its face, unreasonable:

The fact that [the tenant’s] use of the space is not interfering with any critical infrastructure is not persuasive evidence that a prohibition of his use of that space is unreasonable. The Rule is not aimed at that corner of the parking garage or at him personally. The Rule appears to fall within a range of what is reasonable. I conclude that the Rule is not unreasonable.

The CAT found that there was some unexplained delay in enforcing the rule by the previous manager, but there was no evidence the condominium acquiesced in the tenant’s parking arrangements or led him to believe that he was parking in a permitted space. The CAT said “The lapse in enforcing the Rules might require some additional notice of the change in policy but this was provided by the numerous notices during the fall of 2020.”

Remedies

The condominium had several parking spaces for rent for motorcycles, but all spaces were being used at the time of the hearing so the only option was for the tenant to remove the motorcycle from the parking garage. The CAT gave the tenant 21 days to remove the motorcycle from its location. If the tenant fails to do so, the condominium is entitled to take any lawful action available to it to enforce its rules against the landlord and tenant and it will be entitled to charge those expenses to the owner or tenant, or both.

Who can apply for a minor variance for the common elements? Condo or owner?

stencil.default (34)Recently there was an interesting decision released involving a parking dispute between a condominium and a unit owner. This isn’t surprising given that parking is a common problem in condominiums. The interesting part is that the decision was made by the Ontario Municipal Board (OMB) and answered the question: can an owner make an application for a minor variance from a zoning by-law for common element parking spaces? (Spoiler alert – the answer is likely no).  Continue reading

Summer Case Law Reading

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Who doesn’t enjoy a little case law reading by the pool or beach? Oh, that’s just me? Oh well. I hope you enjoy reading these brief summaries anyway.

MTCC No. 1067 v. 1388020 Ontario Corp. 

This is an action by a condo to enforce a lien. The condo brought a motion for summary judgment. There were three issues: interest on the arrears of monthly fees; additional expenses claimed by the condo; and legal costs.

The condo claimed interest at a whopping 30% above the prime rate charged by TD to its best risk commercial accounts per annum, compounded monthly. The defendant argued that the condo was not entitled to such a high rate of interest because it could not provide precise, consistent statements to show it was entitled to the full amount. The judge disagreed. The by-law was a contractual arrangement between the owner and the condo and there was no reason not to enforce it.  Continue reading

Owner not oppressed by by-law restricting use of parking spaces

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I recently read an interesting case about parking rights in a commercial condominium. The applicant was the owner of three units, which were leased for use as a restaurant. The owner commenced an application against her condominium after it passed a by-law restricting parking in common element spaces.

Historically parking was allocated on a first-come, first-served basis. This led to problems with insufficient parking for customers and employees of many of the units. In 2009 the Board passed a by-law to change the allocation of parking spaces. The by-law allocated two parking spots to each unit. In 2014 the Board discovered that the by-law was never registered so it was not valid. The Board passed another by-law in 2015 to fix the problem. The 2015 by-law increased the number of parking spaces per unit to four. The result was that the restaurant had significantly less available parking for its customers.

Continue reading

Parking Dispute Draws Criticism from Judge

Yet another case has been released where the judge hearing the case has been very critical of the parties, especially their failure to consider mediation or act reasonably. In Couture v. Toronto Standard Condominium Corporation No 2187 (2015) a dispute arose about a parking space.

Here are the brief facts: the condominium has 44 units, but only 32 parking spaces. The declaration indicated that parking would be assigned at the “sole discretion of the Corporation.” It also required vehicles to be licensed, insured, and in good repair. The owner was fortunate enough to have been assigned a parking space when she initially purchased her unit. In 2012, the condominium revoked her rights to use the parking space as it claimed that she was not complying with the declaration because the vehicle was not in good repair or licensed. She removed the vehicle and claimed that as long as she paid the rental fee of $50.00 per month she was entitled to keep the space whether there was a vehicle using it or not. Continue reading

What’s the Deal with Parking Spaces and Units?

I have noticed that many people use the terms “parking space” and “parking unit” interchangeably. Unfortunately, this can cause confusion as there are significant differences between parking units and parking spaces.

A parking unit is like other units in a condominium: it is identified in Schedules “C” and “D” of the declaration and in the description as a unit, and is not part of the common elements. The unit has its own legal title, which can be searched at the Land Registry Office or electronically. The unit may be leased or transferred by the owner, unless the condominium’s documents prohibit such.

On the other hand, parking spaces are not units. There is no separate legal title to the parking space and the owner that uses the space cannot transfer it. The parking spaces may be exclusive-use common elements or part of the ordinary common elements. Exclusive-use parking spaces are identified in Schedule “F” of the declaration and on the description. Some parking spaces are simply part of the common elements and the board assigns them to the owners and occupants, sometimes in a by-law.

While it may seem trivial, the distinction between parking units and parking spaces is important because of the different legal rights and obligations associated with each situation.