Monday, May 6, 2013

Condominium Complexes are Private; a Defense Against the creeping expansion of the Alberta Human Rights Commission

The distinction in law between "public" and "private" is a dynamic thing.  It is among many other legal concepts open to interpretation and some would say manipulation.  Where the line is drawn is significant for many reasons least of all the extent to which government can impose itself on the ordinary and private lives of our country's denizens.

Even if one does not critique the history and political philosophy of human rights legislation the incessant expansion of Human Rights Commissions in Canada is worthy of comment.  Particularly in this regard, it is important for those in condominium communities in Alberta to recognize that the Alberta Human Rights Commission (the "Commission") and many who support the shrinking of any societal space considered historically to be "private" hold the view that condominium corporations are bound by the Alberta Human Rights Act (the "AHRA").  The position articulated by the Commission is, notwithstanding the absence of any Court of Queen's Bench authority which supports the Commission's position, that section 4 of the AHRA applies to condominium corporations and prohibits discrimination against any person or class of person in respect of "accommodation or facilities" that are "customarily available to the public".

This position of the Commission is without support in law in Alberta; in this regard reference should be made to Condominium Plan No. 931 0520 v. Smith and the more recent Condominium Plan No. 9910225 v. Davis, both Court of Queen's Bench decisions.  Notwithstanding this clear enunciation of the law, an academic lawyer at the University of Calgary, Jennifer Koshan, has recently suggested that these decisions are wrongly decided.  The basis upon which Ms Koshan asserts this position is imaginative but is unfortunately illogical and lacks grounding in reality.  Ms Koshan's argument is based on a 1993 decision of the Supreme Court of Canada (the "SCC") in University of British Columbia v. Berg.  
Without wallowing in the details, the facts in Berg dealt with the failure of a student to receive a rating sheet and key from the University.  The SCC indicated that the focus of their legal inquiry at pages 373-74 would be in respect of the scope of the terms  "accommodations, services or facilities" and "public" (my emphasis):

"The courts below assumed, and the School conceded, that the key and rating sheet were "services" within the meaning of the Act.  The real issue between the parties was whether such services were, on the correct interpretation of s. 3 and the evidence, customarily available to the public.  This in turn entails two inquiries:  first, whether the student body of a university (or a faculty within the university) is the "public", and if so, second, whether the services in this case were, as a matter of law and fact, customarily available to that public."

The SCC concluded that the term public means more than its ordinary meaning.  The unusual conclusion made by the SCC in Berg is found at page 383:

"Therefore, I would reject any definition of "public" which refuses to recognize that any accommodation, service or facility will only ever be available to a subset of the public.  Students admitted to a university or school within the university, or people who enter into contracts of insurance with a public insurer, or people who open accounts with financial institutions, become the "public" for that service.  Every service has its own public, and once that "public" has been defined through the use of eligibility criteria, the Act prohibits discrimination within that public."

The idead of "a public" (rather than "the public") within a "private" setting and the application of the principal of "eligibility criteria" in this regard may make sense in context of large institutions like universities, insurance companies and financial institutions frequented by many persons in society.  However, this principal of "a public" and the application of "eligibility criteria" cannot be applied to all circumstances; curiously the SCC was silent on the issue of limitation.  Moreover, and I suggest critical in this regard, the SCC's conclusion and Ms. Koshan's reliance on this conclusion from the Berg decision overlooks the limitations based on ordinary meaning which had been determined by the SCC in respect of the scope of these same terms in the Gay Alliance Toward Equality v. Vancouver Sun decision.    With all due respect, this earlier decision does not strain the ordinary meaning of these terms.  It is worthy to note that this case was referred to by the SCC in the Berg decision; the SCC quoted from the Gay Alliance case at page 374:

"After briefly discussing the nature of freedom of the press in Canada, Martland J. wrote (at pp. 454-55):

In my opinion the general purpose of s. 3 was to prevent discrimination against individuals or groups of individuals in respect of the provision of certain things available generally to the public.  The items dealt with are similar to those covered by legislation in the United States, both federal and state.  "Accommodation" refers to such matters as accommodation in hotels, inns and motels.  "Service" refers to such matters as restaurants, bars, taverns, service stations, public transportation and public utilities.  "Facility" refers to such matters as public parks and recreational facilities.  These are all items "customarily available to the public".  It is matters such as these which have been dealt with in American case law on the subject of civil rights."

The SCC had also earlier in the decision at page 366 made reference to an important comment in the decision of the Honourable Justice Legg of the British Columbia Court of Appeal and which was subject of the Appeal to the SCC (my emphasis):

"Legg J.A. assumed, in his decision for the court, that the provision of a rating sheet or a key to the building was an "accommodation, service or facility", noting that the word "service" was to be interpreted broadly, he did not agree that it constituted a service "customarily available to the public" within the meaning of s. 3 of the Act.  In reaching that conclusion, he referred to decisions of this Court stating that human rights legislation should be interpreted so as to advance the broad policy consideration underlying it, but he also argued that this did not mean that the ordinary meaning of words should be strained."

I suggest, with all due respect, that the decision of the SCC does "strain" the ordinary meaning of these terms.  Ms. Koshan is now attempting to suggest that the AHRA should apply to a private condominium communities based on the unusual principal of "eligibility criteria".  Universities are facilities created by statute and funded partly via public funds.  All students with sufficiently high grades and the financial wherewithal may attend at a university.  Perhaps in this context the determination of the SCC that the failure to provide a rating form and a key was discriminatory.  However, condominium corporations are created by registration of a Plan of Subdivision at the Land Titles Office and are simply a means of dividing a parcel of land into smaller parcels all which are capable of being owned privately.  There is nothing public about a condominium corporation.  Only invitees are permitted to come onto either the common property or any particular unit.  It embraces incredulity to suggest that a condominium corporation in this regard is anything remotely like a university or in any manner is public.  Moreover, a condominium corporation does not provide services nor accommodation or facilities.

Those who support the shrinking of societal spaces historically considered to be "private" will suggest that the availability for sale of a condominium units in a particular condominium project is the "eligibility criteria" and upon units being purchased the owners in a condominium become the "public" which the AHRA would apply to.  This is nonsense and illogical.  This faulty logic is revealed by applying the "eligibility criteria" to single detached residences on individual lots.  It is nonsensical to suggest that once an owner purchases a single detached residence they now belong to the "public".  Moving across the continuum it is also nonsensical to apply this to bare land condominiums with single detached residences on it.  It is equally as nonsensical to apply the principal of "eligibility criteria" to duplexes and townhouses not part of condominium projects; by extension this should also make it nonsensical to duplexes and townhouses in condominium complexes.  Though novel and imaginative the application of the principal of "eligibility criteria" to condominiums fails by reductio ad absurdum.   Regardless of the unusual and in some ways illogical conclusion of the SCC in Berg it is suggested that the AHRA will continue to not apply to condominium corporations in Alberta.

Thursday, April 18, 2013

When is a Criminal Matter a Civil Matter? Safer Communities and Neighbourhoods Act, R.S.A. 2007, c. S-0.5

In my earlier years as a lawyer I did eviction work for landlords and property managers.  In those early days I was more familiar with the Residential Tenancies Act (Alberta).   Since then many changes have been made to this act.  I recently became aware of the addition of a new section and corollary act:

Relationship to other Acts
3.1  Notwithstanding anything in this Act, if an order is made pursuant to the Safer Communities and Neighbourhoods Act that terminates a residential tenancy or entitles a landlord to possession of residential premises, the tenancy terminates and the landlord regains possession in accordance with the order.
2007 cS‑0.5 s66

This section 3.1 references the Safer Communities and Neighbourhoods Act (Alberta)I found this act a little ackward to understand but was able to find two cases which have contemplated it:


The "nub" of this legislation is that another remedy now exists for persons who are concerned about questionable conduct occuring in their community.  This act provides that a complaint can be made to the “Director” who by the act is defined as the Director of Law Enforcement appointed under the Police Act.  In the Memorandum of Decision of the Honourable Madam Justice J.B. Veit in Beaverbone, Justice Veit stated the following:

“[31] Alberta’s Safer Communities and Neighbourhoods Act allows the police to make
applications to a court for relief when property is consistently used for certain purposes such as
drug trafficking, gang activity and child pornography. The Act contains the following definition
of “specified use”:

(e) “specified use” means, in relation to property, the use of property for
(i) the manufacturing, import, purchase, sale, transport, giving, possession,  storage, consumption or use of liquor, as defined in the Gaming and Liquor  Act, in contravention of that Act,
(ii) the use or consumption as an intoxicant by any person of an intoxicating substance, or the sale, transfer or exchange of an intoxicating substance if there is a reasonable basis to believe that the recipient will use or consume the substance as an intoxicant, or cause or permit the intoxicating substance to be used or consumed as an intoxicant,
(iii) the possession, growth, use, consumption, sale, transfer or exchange of a controlled substance, as defined in the Controlled Drugs and Substances Act (Canada), in contravention of that Act,
(iv) child sexual abuse or activities related to child sexual abuse,
(v) prostitution or activities related to prostitution,
(vi) the commission or promotion of a criminal organization offence,
(vii) the accommodation, aid, assistance or support of any nature of a gang or criminal organization or any of its activities or the facilitation of any of its activities, or
(viii) any other use prescribed in the regulations;”
Based on the very few cases decided under this act, I am unclear as to the ambit of this act.  Also over the years I have grown weary of hearing City of Calgary Police Officers advising me or my clients that the matter in concern "is a civil matter".  The existence of this act sheds some light on the fact that the Alberta Government has contemplated some circumstances when the most appropriate remedy may be to allow the "Police" to deal with what the Police have historcially often described as a civil matter.

Friday, April 5, 2013

Dancing can get out of hand; a Board's obligation to enforce its noise bylaws/rules

In a recent decision of the Ontario Superior Court (analogous to our Queen’s Bench) Dyke v. Metropolitan Toronto Condo. Corp. No. 972, 2013 ONSC 463 the Honourable Justice E.M. Morgan concluded that a Board of Directors of an Ontario condominium corporation had not done enough to enforce its noise bylaws/rules.
In the Dyke case, the aggrieved owner in suite 811 had lived below suite 911 for thirteen years without much issue.  However, in 2010 a dancer moved in above the aggrieved owner.  Many noise complaints and calls to the police followed as a result of the “dance lessons” being held in suite 911; the suite may have been converted into a dance studio.  The Board of Directors and Property Manager ignored the pleas of the aggrieved owner and instead rebuffed her complaints with a letter from the Board’s lawyer.
The aggrieved owner sought and received an Order from the Court that the Bylaws/Rules were required to be enforced.  The Court concluded that failing to do nothing amounted to “unfairly prejudicial conduct” (in Alberta it would be analogous to our “improper conduct”).  Justice Morgan stated clearly the balancing act which is necessitated by owners and Boards in condominiums:

[24] I hasten to say that the Applicant does not, as she has occasionally suggested in her correspondence and her cross-examination, deserve absolute quiet in her condominium units. The Respondent has a responsibility to enforce its rules in a balanced way so as to ensure that all of the owners and tenants can enjoy their respective units. McKinstry v York Condominium Corporation No. 472, [2003] OJ No 5006, at para 33 (SCJ). However, it stands to reason that the Applicant is entitled to live underneath a residential apartment unit, and not underneath a professional dance studio. That level of quiet enjoyment is certainly within the Applicant’s reasonable expectation. Hakim v Toronto Standard Condominium Corporation No. 1737, [2012] OJ No. 211, at paras 38, 40 (SCJ).

The Court concluded that the condominium corporation was responsible to pay special damages to the aggrieved owner in the amount of $40,325.78 related to the aggrieved owner’s costs in moving out of suite 811 due to the excessive noise.  The Court also awarded costs in favour of the aggrieved owner in the sum of $19,500.00.
This case establishes in Ontario that there is a limit to how much noise an owner must tolerate and clearly established in Ontario that a Board of Directors MUST act to enforce its bylaws to prevent owners making excessive noise.  In this case operating a dance studio clearly is not acceptable from a noise perspective.  This case may well be referred to in Alberta in similar situations.

Monday, January 28, 2013

Deficiencies in Common Property, Technical Audits and New Home Warranty Insurance

I always enjoy hearing Michael Ball, P.Eng. from Morrision Hershfield speak.  On January 22, 2013 Mr. Ball presented on the topic of "Technical Audits" at the CCI-SAC luncheon.

This topic has become more timely as a consequence of the changes being proposed by the Alberta Government to require all developers and builders of condominium projects to obtain insurance through a New Home Warranty Programs.  Mr. Ball made it abundantly clear to those present that failure to conduct a timely technical audit leads to it being a strong possibility that condominium corporations will be outside of the tight timelines imposed by the New Home Warranty Programs (1 year for all but structural issues and 5 years for structural issues) to make a claim on this insurance.  The proposed changes by the Alberta Government may also extend these timelines but in no way will these changes diminish the importance of a condominium corporation vigourously assessing the state of the common property. This is what a technical audit does.

Property Managers should be mindful of the possibility that failure to recommend in writing to Boards of Directors of condominium corporations to conduct a technical audit may lead to owners and others affected alleging that the Property Manager was negligent in not so advising.  More significantly, Boards of Directors should also understand the seriousness of the deadlines imposed by the New Home Warranty Programs and understand that the failure to conduct a technical audit could very well leave a condominium corporation on the wrong side of the deadline and leave Board Members exposed to similar allegations.