What would expanded CAT jurisdiction mean, really?

There’s been quite a bit of excitement and discussion in the sector around a potential expansion of the CAT’s jurisdiction. We do not yet know the exact nature of the next expansion, but we do know that it would likely include issues around owners’ meetings.  

We’ve heard from owners and condo board directors many times that an expansion is overdue. We’ve also heard some concerns about what an expanded jurisdiction over meetings could mean in terms of legal costs and the ability of corporations to make decisions expediently. 

That’s why we’d like to take a moment to share how the CAT approaches jurisdictional expansions and what this would mean for you.  

 

Will added jurisdiction mean more frivolous cases being filed?

The CAT’s Rules of Practice establish safeguards that prevent misuse of its process, including in rare instances where parties file cases in bad faith. 

Just as it does now, the CAT can dismiss a case at any point, including by not accepting an application.  

The Act requires the CAT to run a fair and efficient process. The CAT will be prepared to ensure issues are resolved quickly, with minimal impact on the board’s operation. 

 

Will added jurisdiction mean increasing legal costs for condo corporations?

The CAT is updating its rules after public consultations. One of the things being considered is clearer guidelines around awarding costs, including legal costs for behaviour that was unreasonable, undertaken for an improper purpose, or that caused a delay or additional expense.   

We are looking into striking a fair balance that allows parties to not be discouraged from filing legitimate cases for fear of having to repay legal costs, while also ensuring that unreasonable applications do not abuse the CAT’s process.    

 

Will condo corporations be expected to run meetings flawlessly?

No. The Condo Act does not set out a standard for perfection, not just for meetings, but for anything. That’s why the CAT has approached issues by trying to focus on a standard of what’s reasonable. This is consistent with what the courts currently expect, which is an important consideration for the CAT when it comes to deciding how to approach new issues that are part of its jurisdiction.

 

What can we expect?

The CAT’s value is that parties that have legitimate concerns can get these dealt with more quickly and affordably than the courts. The other added benefit is that the CAT can provide, through its decisions, a body of decisions that guide what is considered reasonable.  

 

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