Court Declares Lien Against Condo Unit Invalid

In a recent case, Pearson v. CCC No.178, the court considered whether a condominium corporation could recover as common expenses the legal costs it incurred for legal advice related to the defence of Small Claims Court actions commenced by an owner.

The unit owner had commenced three Small Claims Court actions to enforce compliance with the declaration by the condominium corporation relating to landscaping and financial disclosure. All of the actions were dismissed without any costs awarded on the basis that Section 134 ofthe Condominium Act (the "Act") requires that an application for a compliance order must be brought in the Superior Court.

Although the corporation was self-represented in the Small Claims Court actions, it incurred legal expenses in the amount of $6,501.95 for advice related to its defence. When the owner did not pay this amount, the corporation registered a certificate of lien against the owner's unit. The owner took the position that