{"id":5858,"date":"2021-04-01T08:45:39","date_gmt":"2023-08-12T08:04:04","guid":{"rendered":"https:\/\/www.millerthomson.com\/can-condo-corporations-charge-back-costs-without-a-finding-of-negligence\/"},"modified":"2026-03-18T14:10:07","modified_gmt":"2026-03-18T18:10:07","slug":"can-condo-corporations-charge-back-costs-without-a-finding-of-negligence","status":"publish","type":"post","link":"https:\/\/www.millerthomson.com\/en\/insights\/condominium-and-strata\/can-condo-corporations-charge-back-costs-without-a-finding-of-negligence\/","title":{"rendered":"Can condo corporations\u2019 charge back costs without a finding of negligence?"},"content":{"rendered":"\n<p>In tort law, a finding of liability typically requires a finding of fault. The Divisional Court has recently confirmed that when it comes to a unit owner\u2019s liability under s. 105 of the <em>Condominium Act<\/em>, no finding of fault is required.<\/p>\n\n\n\n<p>Many condominium corporations have large insurance deductibles for property damage claims.&nbsp; Section 105(1) and (2) of the <em>Condominium Act<\/em> allows a condominium corporation to pass the risk of amounts within the deductible on to unit owners.&nbsp; Section 105(3) of the <em>Condominium Act<\/em> further permits a condominium corporation to pass a by-law extending the circumstances whereby a unit owner may be liable.<\/p>\n\n\n\n<p>In the recent decision of <em>Lozano v. TSCC 1765<\/em>, 2021 ONSC 983, a leak had emanated from the Lozanos\u2019 toilet, ultimately causing damage to the common elements.&nbsp; At the time, the Lozanos were on a several-month trip to the Philippines, and were having a friend check their unit every two weeks.&nbsp; The condominium corporation charged the damage back to the Lozanos under s. 105 of the <em>Condominium Act<\/em> and the by-law which had been passed by the corporation.<\/p>\n\n\n\n<p>The by-laws of TSCC 1761 stated that owners would be responsible for damage to other units and the common elements in the event an owner or person residing in the owner\u2019s unit caused the damage through an act or omission.&nbsp; The Divisional Court confirmed that this \u201cact or omission\u201d does <em>not<\/em> require a finding of negligent behavior:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>s. 105 represents a policy decision made by the Legislature to place the burden of paying the insurance deductible on the person (unit owner) that caused the loss, without consideration of whether that unit owner\u2019s actions were negligent or otherwise.<\/em><\/p>\n<\/blockquote>\n\n\n\n<p>Despite no requirement of negligence, the Divisional Court still confirmed that there was a requirement for an \u201cact or omission\u201d which caused the loss both in fact and in law.<\/p>\n\n\n\n<p>The original application judge was satisfied that the Lozanos\u2019 failure to hire a plumber to inspect the toilet would qualify as an \u201cact or omission\u201d, as was the Lozanos\u2019 prolonged absence from their unit without shutting off their water.<\/p>\n\n\n\n<p>The Divisional Court only agreed in part.&nbsp; The Divisional Court expressed significant reservations as to whether the failure to hire a plumber would qualify as an \u201cact or omission\u201d in law, but was satisfied that the Lozanos\u2019 prolonged absence qualified.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Closing thoughts<\/h2>\n\n\n\n<p>If a by-law has been passed which makes owners responsible for damage to other units and the common elements resulting from an \u201cact or omission\u201d, then a condominium corporation must show that the loss was caused by an \u201cact or omission\u201d.&nbsp; The question of what will qualify as an act or omission remains open to interpretation and debate.&nbsp; What is clear is that no finding of negligence on the part of the unit owner is required, and it is no defence for a unit owner to say that they took all reasonable care to prevent the damage.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In tort law, a finding of liability typically requires a finding of fault. The Divisional Court has recently confirmed that when it comes to a unit owner\u2019s liability under s. 105 of the Condominium Act, no finding of fault is required. Many condominium corporations have large insurance deductibles for property damage claims.&nbsp; Section 105(1) and [&hellip;]<\/p>\n","protected":false},"author":100,"featured_media":14339,"parent":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[555],"insight-format":[416],"class_list":["post-5858","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-condominium-and-strata"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Can condo corporations\u2019 charge back costs without a finding of negligence? | Miller Thomson<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.millerthomson.com\/en\/insights\/condominium-and-strata\/can-condo-corporations-charge-back-costs-without-a-finding-of-negligence\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Can condo corporations\u2019 charge back costs without a finding of negligence? | Miller Thomson\" \/>\n<meta property=\"og:description\" content=\"In tort law, a finding of liability typically requires a finding of fault. The Divisional Court has recently confirmed that when it comes to a unit owner\u2019s liability under s. 105 of the Condominium Act, no finding of fault is required. 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