You may recall the recent 2019 decision of OCP No. 7721985 v. Breakwell where an Alberta court held that the failure to have a furnace inspected following its installation and failing to regularly maintain it meant that the owner had committed an ‘act or omission’ which rendered them responsible for the cost of repair up to the insurance deductible. See our review of the case – Water Water Everywhere! But Who Should Pay The Deductible?
A new Ontario case (Lozano v. Toronto Standard condominium Corp. No. 1765) has not only referenced the Breakwell decision but another Saskatchewan decision on the same issue, both upholding the Breakwell proposition – that an owner failing to maintain a toilet that had a slow leak constituted an ‘act or omission’ and the owner was responsible for paying the costs of the repair up to the insurance deductible.
As a final note, recall that the new CPA Regulations on deductibles state:
an owner, on demand by the corporation, is absolutely liable to the corporation for the amount of the deductible in the corporation’s insurance claim for damage that originates in or from the owner’s unit or an exclusive possession area assigned to the owner (s. 62.4)
Should you have any questions please do not hesitate to contact any one of our experienced condominium team.