Update, Thursday Oct 15: Judge reserves decision on an administrator
At a glance
- No order yet. Justice Steele said a written decision will be released today or tomorrow.
- Today’s hearing dealt only with the corporations where no opposition has been reported.
- Next court dates: Tuesday, October 20 and Thursday, October 22.
- Draft order changes: owner meetings within 30 days (previously 90); the administrator back in court within 45 days.
Today’s hearing
The hearing on the Owner Group’s motion to appoint Brian Antman as administrator continued today before Justice Steele. Today’s hearing dealt only with the corporations where no opposition has been reported. Justice Steele did not make an order at the hearing and said a written decision will be released today or tomorrow.
What the judge said
Justice Steele said the court has not yet decided whether to grant the order for the unopposed corporations or to have everyone return next week on full notice. The court will sit again on Tuesday, October 20 and Thursday, October 22.
The judge’s questions focused on two concerns raised by Mr. Ruhl, counsel for a group of opposing unit owners:
- Notice. Do owners in these buildings actually know about the motion?
- Building-by-building evidence. Can the court make one order covering a group of condos without looking at each condo’s own facts? The judge asked whether anyone knew of a case where this had been done for a group of condominiums. Mr. Ruhl said he did not.
Justice Steele also said counsel for Firm Capital made “an excellent point”: courts make orders without notice to everyone all the time, which is why orders include a way to come back to court.
“Thank you very much, Miss Miller. And that’s an excellent point.”
What changed since yesterday
- Removed: Leeds Standard Condominium Corporation No. 48 (LSCC 48). The public Condominium Authority of Ontario (CAO) registry shows LSCC 48 was registered on October 9, and its last listed director’s term started the same day. It appears no turnover meeting has been held, so it was taken off the list in the revised draft order.
- Added: Essex Standard Condominium Corporation No. 168 and Lambton Condominium Corporation No. 11. Mr. Bhatti, who acts for unit owners in several of the condos, advised that his clients in these two buildings no longer oppose an administrator. Owner Group counsel checked the CAO registry during the hearing, and the judge accepted that both have held turnover meetings.
Changes to the draft order
Owner Group counsel described two changes in the revised draft order circulated this morning. Other stakeholders asked for them, and the Owner Group agreed in order to keep the administration short:
- Paragraph 8: owner meetings to elect new boards must be called and held within 30 days (previously 90).
- Paragraph 9: the administrator must return to court as soon as possible after the new boards are elected, and in any event within 45 days, to seek a discharge or further directions.
Counsel said the return date should be set once Mr. Antman has scheduled the meetings. He also pointed to paragraph 19, the “comeback” clause, which lets unit owners and other stakeholders with standing under section 131 of the Condominium Act bring a motion to change or set aside the order.
Positions at the hearing
Owner Group (Mr. Duggan)
Mr. Duggan asked for the order in its revised form so Mr. Antman can start right away on the unopposed corporations. He said the evidence is uncontradicted that each of these corporations has no board and no manager, and remains ungoverned. That is the basis for a section 131 motion.
He also clarified that:
- owners were not told the directors had resigned until the aide-memoire circulated last week;
- the CAO registry still lists those directors, because they resigned by letter to the Condominium Management Regulatory Authority of Ontario (CMRAO) rather than through the CAO’s process; and
- the CMRAO told the Proposal Trustee it cannot release owners’ email addresses without a court order. An administrator could obtain them and contact owners directly.
Opposing unit owners (Mr. Ruhl)
Mr. Ruhl acts for unit owners in corporations scheduled for next week. He argued that:
- Owners can still elect their own boards. Meeting notices have gone out, or are going out, in some of his clients’ condos, with a minimum notice period of about 15 days.
- The court must be satisfied condo by condo, and does not have each condo’s facts in front of it.
- The administration would really run about 75 days (30 days to elect boards plus 45 days), not 45.
- Not all insurance expires in October. His understanding is that his clients’ policies renew in March 2027.
Proposal Trustee (Mr. Wasserman)
Mr. Wasserman supported appointing an administrator. He called this a “very perilous situation” and said he had not heard any other way to deal with urgent needs in the common elements.
“I think you know under these circumstances, you know, you’ve got a very perilous situation.”
He described one condominium where insurance has already expired: the Trustee was asked to pay the premium but cannot, and neither can SIREG, because paying it would amount to managing the condo after its licence was revoked.
“We’ve been asked to pay for the insurance. We can’t do it. Neither can the company because that would be managing the condo, and the license has been revoked.”
He suggested the court could find that notice has been given, given how public these proceedings are, and that section 183 of the Bankruptcy and Insolvency Act supports this. He also suggested the order could require the administrator to step aside once boards are properly in place, avoiding another hearing and further cost.
On Mr. Ruhl’s idea of shortening meeting notice, Mr. Wasserman said the Trustee had been considering something similar and could file evidence by next week, while the administrator goes in now for the unopposed corporations. Mr. Duggan noted the Condominium Act has no provision for shortening meeting notice. Mr. Wasserman said the Trustee could not say today whether the court has that power.
Firm Capital (Ms. Miller)
Ms. Miller supported the order. She said the facts are extraordinary and go well beyond boards resigning. Pointing to the Forrest Todd affidavit, she said insurance on Firm Capital’s properties had expired or was coming due in October, and that it is a fair inference this is not a coincidence. Firm Capital is first mortgagee on two London condos on today’s list, and their condo insurance expires October 22. She asked what Mr. Ruhl’s solution would be before then.
SIREG (company counsel)
SIREG’s counsel said the company is sending all unit owners their governing documents and a list of the owners in their condo with mailing addresses, so owners can organize and call meetings. It cannot share email addresses without a court direction, because the condo regulations do not give owners a right to other owners’ emails.
What happens next
- Decision on the unopposed corporations: Justice Steele’s endorsement is expected today or tomorrow.
- Tuesday, October 20 and Thursday, October 22: the opposed corporations are expected to be heard.
We’ll share more as it becomes available.
This is general information only, not legal advice. Questions? Email owners@condoownersnetwork.com.