Canada Judgment

Supreme Court of British Columbia

Deng v. Strata Plan LMS 3904

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Professional case brief

Research organized from the available case record

Source document

01

Holding and result

The petition is dismissed because the CRT reasonably concluded the petitioner did not request or attend the mandatory strata council hearing under the Strata Property Act and there was no basis to waive that requirement, placing the dispute outside the tribunal's jurisdiction and making the CRT's refusal to resolve the dispute reasonable under the Vavilov reasonableness standard.

Court disposition

Petition dismissed; CRT decision refusing to resolve the dispute upheld

Orders

  • Petition dismissed
  • Costs awarded to respondents Strata Plan LMS 3904 and Ernest Corlett fixed at $5,000
  • Disbursements awarded to those respondents in the amount of $112.51
  • No costs awarded to the Civil Resolution Tribunal

02

Material facts

Parties

Qiu Lian Deng

Petitioner Counsel: F. Chen

Strata Plan LMS 3904

Respondent Counsel: J.A. Hand

Ernest Corlett

Respondent Counsel: J.A. Hand

Civil Resolution Tribunal

Respondent Counsel: Z. Rahman

Amounts and remedies

  • Draft Bill of Costs Submitted by Respondents: CAD 5,420.8
  • Costs Awarded: CAD 5,000
  • Disbursements Awarded: CAD 112.51

03

Procedural history

  1. Posture

    Judicial Review of Civil Resolution Tribunal Decision / Final Judgment Dismissing Petition

04

Questions and positions

Legal issues

Party arguments

Applicant
The petitioner sought orders compelling production of strata financial records and contended the CRT should order relief; she asserted strata had no right to hold hearings and declined to attend the council hearing offered.
Respondent
Respondents argued the petitioner failed to request or attend the mandatory strata council hearing required by s.189.1(2) SPA, lacked standing to file the CRT dispute, and there was no basis for the CRT to exercise discretion to waive the hearing requirement.

05

Court’s reasoning

  1. 01

    Strata Property Act, s.189.1(2)(b)

    An owner may not request the tribunal resolve a strata dispute unless the owner has requested a hearing before the strata council or the hearing requirement is waived

  2. 02

    Strata Property Act, s.34.1 and s.189.1(2)(b)

    Strata councils have authority to hold hearings regarding strata disputes

  3. 03

    Canada (Minister of Citizenship and Immigration) v. Vavilov, 2019 SCC 65

    Non-final tribunal decisions are reviewed on the reasonableness standard as explained in Vavilov

  4. 04

    Canada (Minister of Citizenship and Immigration) v. Vavilov, 2019 SCC 65

    On reasonableness review the tribunal's reasons must show a defensible chain of analysis justified in relation to the facts and law

  5. 05

    Civil Resolution Tribunal Act and common law (applied in judgment)

    Where the CRTA does not provide a standard for non-final decisions, the common law standard applies

06

Ratio, limits and disposition

Ratio decidendi

The petition is dismissed because the CRT reasonably concluded the petitioner did not request or attend the mandatory strata council hearing under the Strata Property Act and there was no basis to waive that requirement, placing the dispute outside the tribunal's jurisdiction and making the CRT's refusal to resolve the dispute reasonable under the Vavilov reasonableness standard.

Obiter and limits

  • The CRT has expertise in Strata Property Act matters and its interpretation was reasonable given the clear language of the Act
  • Prior CRT decisions ordering production differed on their facts and did not compel a different result here
  • The standard of review for non-final CRT decisions is governed by Vavilov when ATA/CRTA provisions do not apply
  • The tribunal will not be awarded costs in these judicial review proceedings as customary

Court disposition

Petition dismissed; CRT decision refusing to resolve the dispute upheld

  • Petition dismissed
  • Costs awarded to respondents Strata Plan LMS 3904 and Ernest Corlett fixed at $5,000
  • Disbursements awarded to those respondents in the amount of $112.51
  • No costs awarded to the Civil Resolution Tribunal

Source and reliance status

Supreme Court of British Columbia · 23 October 2020

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Judgment reading view

Judgment text

The complete available source text.

Source document

Supreme Court of British Columbia

Judgment· 23 October 2020

2020 BCSC 1762

2020 BCSC 1762 Deng v. Strata Plan LMS 3904

IN THE SUPREME COURT OF BRITISH COLUMBIA Citation: Deng v. Strata Plan LMS 3904, 2020 BCSC 1762 Date: 20201023 Docket: S1913377 Registry: Vancouver Between: Qiu Lian Deng Petitioner And Strata Plan LMS 3904, Ernest Corlett and the Civil Resolution Tribunal Respondents Before: The Honourable Madam Justice Wilkinson Oral Reasons for Judgment In Chambers Appearing as Agent for the Petitioner: F. Chen Counsel for the Respondents, Strata Plan LMS 3904 & Ernest Corlett: J.A. Hand Counsel for the Respondent, Civil Resolution Tribunal: Z. Rahman Place and Date of Hearing: Vancouver, B.C. October 23, 2020 Place and Date of Judgment: Vancouver, B.C. October 23, 2020 [1] THE COURT: These reason were delivered orally and have been edited for distribution. Background [2] This proceeding is a judicial review of a decision of the Civil Resolution Tribunal (the "CRT") dated September 27, 2019, indexed as 2018 BCCRT 1141 (the "decision"). The petition is brought pursuant to the Judicial Review Procedure Act. [3] The petitioner is the owner of a unit in a 38‑unit condominium complex, Strata Plan LMS 4904, (the "Strata Plan"). The Strata Plan is managed through its strata council ("the Strata Council"). There are only four owners in the complex. There are two individual owners, one of which is the petitioner, and two corporate owners which own the remaining 36 units. That means the petitioner is

automatically a member of the Strata Council because there are only the four owners. It appears she has never attended a Strata Council meeting. [4] The petitioner filed three disputes with the CRT, all of which sought orders requiring the Strata Plan to provide her with financial documents. The documents requested in 2016 and 2017 were copied by the Strata Council, but the petitioner has apparently not collected them from the Strata Council office. [5] The petitioner filed another dispute with the CRT on January 12, 2019, and it is the decision in that proceeding that forms the basis of this petition. In that 2019 CRT dispute, the petitioner again sought various orders against the Strata Plan seeking to compel the production of various financial records of the strata and an order compelling Strata Council meeting minutes to be signed by all council members, that the council prove the legality of all payments and operating funds since 2016 and that the strata president stop using his company email address. [6] In its decision, the CRT declined to determine the dispute. [7] The Strata Plan denied the petitioner's claims and also submitted that the petitioner did not request or attend a hearing before the Strata Council as required in s. 189.1(2)(a) of the Strata Property Act [SPA]. [8] The CRT set out the issue before it. That is, should the tribunal refuse to resolve this

dispute because the petitioner failed to request or attend a hearing before the Strata Council? [9] Paragraph 15 of the decision sets out the evidence before the CRT on this issue: In its dispute response and submissions, the strata says the owner never requested a hearing before the strata council before filing her dispute. The strata says it asked her to request a hearing, and she refused. The strata also says it scheduled a hearing for an owner on April 3, 2019, so she could discuss her concerns, but the owner refused to attend. [10] From the evidence and the record, on February 6, 2019, Mr. Corlett, the Strata Council president, invited the petitioner to request a hearing before council. She did not do so. Despite not providing a request for a meeting to council, the petitioner was advised in an email dated March 21, 2019 that a hearing with the Strata Council had been scheduled for April 3, 2019. [11] On March 23, 2019, the petitioner advised the Strata Council that she would not attend the meeting. The petitioner was encouraged to reconsider her position on March 29, 2019. She responded on March 30, 2019 as follows: Once again, Madam Deng and Ms. Leung "will not" and "do not" intend to attend the meeting on April 3, 2019 they do not want to wasting their time for nothing toward with the "meaningless" and "pointless" for nothing solution within the law. [12] This was

apparently based on Ms. Deng's thinking that a hearing before the Strata Council was not possible. The CRT Decision [13] In view of this evidence, the CRT made this finding: 16. I accept the strata's assertions as they are consistent with the correspondence in evidence, and were not specifically disputed by the owner. Rather, in a July 18th, 2019 email provided in evidence, the owner wrote that the strata has no right to hold hearings, and hearings can only be held by a court.

17. I find the owner's position is incorrect. SPA [Strata Property Act] sections 34.1 and 189.1(2)(b) specifically set out the power of a strata council to hold hearings. These sections also say that a hearing is mandatory before an owner may file a dispute with the tribunal. [14] The CRT went on to consider whether it should exercise discretion to waive the hearing request requirement, and it concluded there was no basis to waive the requirement in the circumstances of the case. [15] The CRT relied on the case of Ducharme v. The Owners, Strata Plan BCS 753, 2019 BCCRT 219, which held that the purpose of s. 189.1(2) was to ensure strata owners attempt to resolve their disputes at the council level and without recourse to the courts. The CRT also relied on Buschau v. The Owners, Strata Plan LMS 1816, 2018 BCCRT 413, in declining to waive the requirements of s. 189.1. [16] With regard to the request in this petition, the petitioner has never attended a council meeting. Nor did she request a waiver of the requirements of s. 189.1 in the course of her CRT dispute. The CRT disposed of the dispute as follows: 23. As previously stated, s. 189.1(2)(b) says that an owner may not request that the tribunal resolve the dispute unless they have requested a hearing before the strata council, or unless that hearing requirement is waived. Since there was no hearing request and I do not waive

the hearing requirement, the owner was not entitled to file her dispute with the tribunal. I therefore find all of the owner's claims and therefore this dispute are outside the tribunal's jurisdiction because the owner does not have standing to make a request for dispute resolution under s. 4 of the CRTA [Civil Resolution Tribunal Act]. Standard of Review [17] The CRT was established under the Civil Resolution Tribunal Act, S.B.C. [2012], c. 25 [CRTA]. The CRTA was amended as of January 1, 2019 to provide for judicial review of final tribunal decisions pursuant to the Administrative Tribunals Act, S.B.C 2004, c. 45 [ATA]. A refusal to resolve a decision pursuant to s. 10 of the CRTA does not meet any of the definitions of a "final decision." Accordingly, the ATA does not prescribe the standard of review. [18] There are no other applicable CRTA provisions that determine the standard of review for non‑final decisions. Therefore, the common law standard of review pursuant to the case of Canada (Minister of Citizenship and Immigration) v. Vavilov, 2019 SCC 65 applies to non‑final tribunal decisions. [19] None of the exceptions requiring the application of the correctness standard of review apply. As I understand it, the parties do not dispute that in this case. Following Vavilov, the British Columbia Court of Appeal applied the reasonableness standard of review to a non‑final

decision of the tribunal where s. 56.7 of the CRTA does not apply in accordance with Vavilov: The Owners, Strata Plan NW 2575 v. Booth, 2020 BCCA 153, at para. 17. [20] In Vavilov, the Supreme Court of Canada provided considerable guidance on reasonableness review, including that the tribunal's reasons are the starting point for a reasonableness review. A reasonable decision is based on an internally coherent and rational chain of analysis that is justified in relation to the facts and law that constrain the decision-maker. The reasonableness standard requires that a reviewing court defer to such a decision. [21] The burden is on the party challenging the decision to show that it is unreasonable. Before a decision can be set aside on this basis, the reviewing court must be satisfied that there are sufficiently serious shortcomings in the decision such that it cannot be said to exhibit the requisite degree of justification, intelligibility and transparency. [22] Some elements that are generally relevant in evaluating whether a decision is reasonable include: the governing statutory scheme, other relevant statutory or common law, the principles of statutory interpretation, the evidence before the decision-maker and facts of which the decision-maker may take notice, the parties' submissions, the past practices of decisions of the administrative body and the potential impact of the

decision on the individual to whom it applies. These elements are not a checklist and may vary in significance depending on the context. Analysis [23] I find here that the CRT's application of the Strata Property Act was not unreasonable for the following reasons. [24] There was no evidence that the petitioner requested a hearing before commencing the CRT proceedings. In fact, the evidence was to the contrary. When offered the chance to attend a council meeting, she declined to attend. The CRT's decision not to exercise its discretion to waive the requirement that the petitioner first seek a hearing before commencing the CRT dispute was entirely reasonable based on the evidence before it. [25] The petitioner says the CRT has ordered production in prior decisions, so it should have here. However, the facts of those prior cases differ from the facts in the case before me. [26] The written reasons of the CRT clearly articulate its reasoning process. Those reasons clearly identify the evidence it relied upon in declining to accept jurisdiction over the petitioner's dispute. The CRT's interpretation of the SPA is reasonable given the clear language of the act and the CRT's expertise in SPA matters. Conclusion [27] There is no basis for this Court to set aside the decision which refused to determine the relief sought by the petitioner. [28] Accordingly, I dismiss the

petition. Costs [29] Submissions were made regarding costs. I will award costs to the respondents other than the CRT, as they are entitled to their costs on the petition at Scale B as the successful party. Counsel for those respondents has submitted a draft bill of costs totalling $5,420.80. I award costs fixed at $5,000 and disbursements as claimed of $112.51. [30] No costs will be awarded to the tribunal, as is usual in these matters. "Wilkinson J."

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Ducharme v. The Owners, Strata Plan BCS 753, 2019 BCCRT 219

Case cited

Buschau v. The Owners, Strata Plan LMS 1816, 2018 BCCRT 413

Case cited

The Owners, Strata Plan NW 2575 v. Booth, 2020 BCCA 153

Case cited

Canada (Minister of Citizenship and Immigration) v. Vavilov, 2019 SCC 65

Case cited

Deng v. Strata Plan LMS 3904, 2018 BCCRT 1141

Case cited

Strata Property Act, s.34.1

Legislation

Legislation referenced in the available case record.

Strata Property Act, s.189.1(2)(b)

Legislation

Legislation referenced in the available case record.

Civil Resolution Tribunal Act

Legislation

Legislation referenced in the available case record.

Judicial Review Procedure Act

Legislation

Legislation referenced in the available case record.

Administrative Tribunals Act

Legislation

Legislation referenced in the available case record.

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