Declarant ousts board using majority ownership.

The Superior Court of Justice recently heard what appears to be the first reported decision under section 152(6) of the Condominium Act, 1998. Section 152(6) permits a declarant of a phased condominium to request a meeting of owners so it may elect a new board where it owns a majority of the units as a result of the registration of amendments to the declaration and description creating a phase.

In Middlesex Standard Condominium Corporation No. 643 v. Prosperity Homes Limited [2014] ONSC 1193 the declarant brought a motion for an order requiring the condominium to call a meeting of owners so it could elect a new board. The condominium refused the declarant’s request arguing that the declarant was out of time to make the request as he became the majority owner over 2 years prior and was aware of his right to request the meeting since the beginning. The condominium also claimed it was further oppressive conduct as the declarant admitted that it wanted the meeting so it could elect a new board that would discontinue another action (where the condominium claimed damages from the declarant for construction deficiencies in the amount of $750,000.00). The court found that it was not further oppressive conduct or otherwise limited at law and ordered the condominium to call the meeting. Continue reading