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ARTICLE · 06 SEPTEMBER 2022

Are Building Developers Liable? Maybe… Condo Corp v JV Somerset Development Inc, 2022 ABCA 193

A condominium building's balconies were discovered to have been deficiently designed and constructed after water infiltration and wood rot occurred to the building.

CanadaReal Estate and Construction

Background: No Involvement in Construction 

A condominium building's balconies were discovered to have been deficiently designed and constructed after water infiltration and wood rot occurred to the building. The condo corporation commenced litigation against various parties involved in the construction including the developer of the building.

The developer was alleged to be liable in negligence and to have breached its fiduciary duty to the subsequent owners of the condominium units for providing units that were unreasonably fit for habitation and for not being constructed in a good and workmanlike manner.

The developer successfully applied for summary dismissal on the basis it was not involved with the design or construction of the building. The chamber's judge agreed and held a developer cannot be liable in tort for construction deficiencies unless it was actually involved in the physical construction. The condo corporation appealed.

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