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APPEAL PANEL confirms deficiency defendant NOT SHELTERED by lateness of NOTICE OF LITIGATION 2020/02/09 19:38  
Again NOT legal advice.

An Ontario appeal court possee of five has upheld the outcome of a lower court decision rejecting a defence shield attempted by one of the defendants - a former PMC property management company. The PMC had sought to intrusively shield itself behind protections for current & prospective condo owners/lenders/ creditors as contained in section 23 of Ontario's Condominium Act 1998.

The PMC had argued that the deficiency claim against multiple defendants was void & staledated for failing to ( timely ) serve to unit owners/lenders a preliminary Condo Act 1998 section 23 prior Notice of ( corporate ) litigation. That such was void for failing to precede filing formal Notice of Action but before Statement of Claim.

( Yes it's legislation protecting current & prospective stakeholders. But from a non-protected defendant, how does that go ? "Your contract claim against me was void because you beat your dog or your tractor's not green or whatever . . ." )

From Ontario's Condominium Act 1998 C 19 :

. . . Action by corporation

23 (1) Subject to subsection (2), in addition to any other remedies that a corporation may have, a corporation may, on its own behalf and on behalf of an owner,

(a) commence, maintain or settle an action for damages and costs in respect of any damage to common elements, the assets of the corporation or individual units; and

(b) commence, maintain or settle an action with respect to a contract involving the common elements or a unit, even though the corporation was not a party to the contract in respect of which the action is brought. 1998, c. 19, s. 23 (1).

Notice to owners

(2) Before commencing an action mentioned in subsection (1), the corporation shall give written notice of the general nature of the action to all persons whose names appear in the record of the corporation required by section 46.1 or are required by that section to appear in that record except if,

(a) the action is to enforce a lien of the corporation under section 85 or to fulfil its duty under subsection 17 (3); or

(b) the action is commenced in the Small Claims Court. 1998, c. 19, s. 23 (2); 2015, c. 28, Sched. 1, s. 20.

The technicals of ONCA's Y.R.S.C.C. # 1206 v 520 Steeles Dev 2020 ONCA 63 issued Jan 31/20 are discussed & happily simplified by Ottawa condo lawyer Rod Escayola ( partner Gowling - WLG ) at :

Feb 6/20 “Condos Must Notify Owners Before Commencing Lawsuits 2.0” blog-Ontario

and earlier

June 19/20 “Condos Must Notify Owners Before They Commence Lawsuits” blog-Ontario
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