Improper Use of the Indemnification Clause

Many declarations contain a clause that requires the owners to indemnify the corporation for a loss, cost, damage or injury to the common elements or units if it was caused by the owner, his family, tenants, guests etc. Many condominiums attempt to apply these clauses to other types of expenses incurred by the condominium, such as legal costs.

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In for a penny, in for a pound? A cautionary tale on costs.

In the past few years there has been a trend toward full or substantial indemnity costs for condominiums enforcing against unit owners. However, in York Condominium Corporation No. 345 v. Qi, [2013] O.J. No. 3214 the courts have again awarded only partial indemnity to a successful condominium. Although the court acknowledged the previous case law supporting full indemnity costs for condominiums that are successful in enforcing against unit owners, it also reiterated that judges have retained their general discretion to award costs. In making its decision, the court had the following concerns in awarding costs in favour of the condominium: Continue reading