2004 Legislative Session: 5th Session, 37th Parliament
FIRST READING


The following electronic version is for informational purposes only.
The printed version remains the official version.


MR. TONY BHULLAR

BILL M 205 -- 2004

STRATA OWNERS' DISPUTE RESOLUTION ACT

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

Information as to right to sue and to arbitrate disputes

1 Section 163 of the Strata Property Act [SBC 1998] Chapter 43 is amended by adding to, subsection (2), immediately following the words "An owner" the following "or tenant".

2 The Strata Property Act, [SBC 1998] Chapter 43 is amended by adding the following section:

163 (1) Every Strata Corporation shall provide each owner and tenant with a copy of Part 10 of this Act, outlining:

(a) the right to sue the Strata Corporation or to demand arbitration of an unreasonable action or threatened action by the Strata Corporation, and

(b) the owner's and tenant's rights and obligations in the case of legal suit or arbitration between an owner or tenant and the Strata Corporation

forthwith upon the Strata Corporation receiving notice of the owner's entitlement under this Act in a strata lot under its authority, or of the tenant's entering into possession thereof.

3 Section 164, subsection (1) of the Strata Property Act [SBC 1998] Chapter 43 is amended by deleting the words "significantly unfair" and by substituting therefor the word "unreasonable".

4 Section 164 of the Strata Property Act [SBC 1998] Chapter 43 is amended by adding the following subsection:

(3) For the purposes of this section:

(a) a change, changes or a proposed change or changes to the bylaws of a Strata Corporation may be deemed by the Supreme Court to constitute an unreasonable action or threatened action where circumstances so warrant, and

(b) (i) An owner who has given prior written objection in the case of such a proposed change or changes to the bylaws, or who has voted against such a change or changes to the bylaws must not be required to contribute to the costs of defending a suit or satisfying a judgment with respect to such dispute, and

(ii) in such case may recover any contribution or contributions so paid, and

(iii) shall not be required to contribute to any costs or judgment associated with the arbitration or arbitrator's order arising from such a dispute, and

(iv) may recover any contribution or contributions so paid.

5 Section 186 of the Strata Property Act [SBC 1998] is amended by adding the following subsection:

(4) (a) Subject to Section 164 of this Act, the arbitrator's order shall specify that the Strata Corporation is liable to pay the costs of the arbitration process unless he finds the arbitration to have been the result of a substantially false, misleading, frivolous or vexatious claim or complaint by the owner or tenant initiating the process, and

(b) In making an order under this section, the arbitrator shall consider the previous course of dealings between the parties, including any previous arbitrations or legal suits and the disposition thereof.

 
Explanatory Notes

This Bill ensures that owners (purchasers and lessees), and tenants of condominiums will be aware of their right to sue the Strata Corporation or to demand arbitration in the case of unreasonable actions or threatened actions, clarifies the Supreme Court's right to review Strata Property bylaw changes and to strike down those which are unreasonable, while protecting owners who voted against or who gave prior written objection to such unreasonable bylaw changes from associated legal costs.

This Bill also provides for the Strata Corporation to bear the costs of arbitrating disputes, except in the case of substantially false, misleading, frivolous or vexatious claims.


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