Condominium corporations are uniquely placed to encounter
collective action problems. Each condo unit is individually
owned, but they share much of the same infrastructure and that
infrastructure connects with collectively owned infrastructure.
TSCC 1696 encountered one of these situations when it found out
that it needed to replace its pipes. The decision of Justice
O'Brien is in Hawkins v. TSCC 1696, 2019 ONSC
2560.
The Facts
In 2016, the corporation became aware that the building,
including individual units, had been constructed using Kitec pipes,
which were known to fail. The board determined that it was
necessary to replace the pipes to avoid water damage. It negotiated
a single contract for replacement of the pipes and then sent notice
to owners allowing them to opt out.