FYI: Update from our lawyers (LDDC): one application or one per building, costs, and options

We asked David Di Lella at LDDC some of the questions owners have been raising. He has agreed that we can share his answers. Here they are, summarized.

Why can't one application cover all the buildings?

Each condo corporation is a separate legal entity, and LDDC has serious concerns about a single combined application. The buildings have different owners and stakeholders. Some are in different municipalities and would need hearings in different courts. Each needs its own affidavit evidence, has its own circumstances and will have its own costs to recover.

There is also a practical problem after the order is made. The administrator has to report to the court and attend hearings on an ongoing basis. In a combined application, every report or attendance for one building would require notice to every owner in every building. It would also mean sensitive financial information about one corporation being shared with owners of the others.

What will it cost?

LDDC has lowered its fee to $35,000 plus HST and disbursements per corporation, to help with cost concerns. Their pricing already assumes that work will be shared across the buildings.

The proposed administrator, Brian Antman, charges $375 an hour. He expects much of his work to apply to more than one building, and work that overlaps will be shared, which should keep costs down.

Will later applications be cheaper?

No. LDDC's view is that pricing a later application lower would be unfair to the owners who funded the earlier ones. The reduced fee above is meant to help here.

What if our building can't fund an application?

For smaller buildings, an owner-called meeting to elect a new board may be an option, assuming all the directors have resigned. LDDC's cautions:

• It only works if we know with certainty who all the owners are, so that notice is properly given.
• It would likely take at least three weeks, possibly longer, to call and hold the meeting. Some buildings may not be able to go that long without any governance or management.

Who pays the legal costs in the end?

The most likely approach is to ask the court to order each condo corporation to pay the costs of its application. That leaves it open to the corporation to pursue SIREG and the individual directors to recover them.

If you have questions about your own building, please contact your building lead.