Executive Summary: Key Legal and Evidentiary Issues

• Allocation of $1,732,353.41 in special levies for catwalk repairs between residential and commercial sections of a strata corporation.

• Interpretation and application of section 195 of the Strata Property Act and Bylaw 33 regarding expense allocation.

• Determination of whether the catwalks “relate solely to” the residential section lots.

• Analysis of whether the strata’s bylaws permit allocation of repair expenses solely to the residential section.

• Consideration of evidence regarding the use and benefit of the catwalks and associated infrastructure.

• Assessment of whether requiring the commercial section to pay for catwalk repairs constitutes significant unfairness under section 164 of the Act.

Facts and outcome of the case

Background and parties

Section 2 of the Owners, Strata Plan LMS 257, representing the owners of two commercial lots in a mixed-use strata building known as Mission Manor in Mission, British Columbia, petitioned against The Owners, Strata Plan LMS 257, the strata corporation as a whole. The strata corporation is divided into two sections: Section 1, comprising 75 residential lots, and Section 2, comprising the two commercial lots. In December 2024, the strata held a special general meeting where two resolutions were passed for special levies totaling $1,732,353.41 to repair common property catwalks located in the building’s interior courtyard. The commercial section’s share of the levies was $139,837.80. The commercial section owners voted against the levies, but the residential section owners, holding a numerical majority, passed the resolutions.

Legal issues and arguments

The commercial section argued that the catwalks constitute common property that relates solely to the residential section lots and that, under section 195 of the Strata Property Act and Bylaw 33, only the residential section should bear the costs of repair. Alternatively, the commercial section sought relief under section 164 of the Act, claiming it was significantly unfair to require them to contribute to the expenses. The strata corporation opposed the petition, arguing that the expenses did not relate solely to the residential section and that, even if they did, neither the Act nor the strata’s bylaws permitted allocation of the expenses only to the residential section.

Court’s analysis

The court examined section 195 of the Strata Property Act and Bylaw 33, as well as relevant case law. It found that section 195 creates a default rule that expenses of the strata corporation relating solely to the strata lots in a section are to be shared by the owners of that section, and that Bylaw 33 reinforces this allocation. The court found that the catwalks are used exclusively by the residential section for access to their lots and provide no benefit or access to the commercial section owners or tenants. The court also found that the electrical wiring and sprinkler pipes running along the catwalks serve only the residential section lots and catwalks. The court accepted the evidence of the commercial section representatives that their fobs did not provide access to the floors with the catwalks and that the commercial and residential sections each pay for their own electricity and fire equipment.

Outcome and orders

The court declared that the catwalks relate solely to the residential section and that the commercial section is not obligated to contribute to the repair and maintenance costs of the catwalks. The court ordered that the resolutions passed at the special general meeting on December 6, 2024, approving special levies to repair the catwalks, be set aside. The court further ordered that any monies paid to the strata by the owners of strata lots in the commercial section on account of these special levies be returned by the strata to those owners. The court stated that the commercial section should have its costs of the petition at the ordinary scale, unless either party wished to make different submissions on costs within 30 days. No damages were awarded.