Record Requests and Condo Costs: Key Takeaways from Puxty v. FCC 57
Navigating records requests can be taxing for condominium corporations and owners. Legislation and case law clearly confirms that owners are entitled to access condominium records, subject to any restrictions within the Condominium Act, 1998 and regulations thereto. However, it takes time and resources of the condominium corporation in order to review and respond to any such request.
The question of reasonableness of costs to prepare records for an owner’s review was recently reviewed by the Condominium Authority Tribunal (the “CAT”) in the decision of Puxty v. Frontenac Condominium Corporation No. 57. The key questions for the CAT were whether or not the charges set out in the Board’s Response to Records Request were fair, or did they hinder access? The Tribunal’s decision addressed this question while offering clear comments on fairness, proportionality, and cost.
Brief Facts
A unit owner in Frontenac Condominium Corporation No. 57 (FCC 57), requested access to various non-core records, including various financial statements and meeting minutes spanning a period of ten years. FCC 57 provided fee estimates for producing these records, which the owner contested as unreasonable. The dispute escalated to the CAT, focusing on:
- The reasonableness of FCC 57’s fee estimates.
- Potential penalties for non-compliance in providing records.
- Entitlement to cost awards for either party.
Findings of the CAT
The Tribunal evaluated FCC 57’s fee estimates, which included labor for retrieval (at offsite storage), review, redaction, and photocopying expenses. For instance, FCC 57 estimated a cost of $504 to prepare and provide reserve fund bank statements from 2015 to 2024, comprising $360 in labor and $144 for photocopying. The CAT deemed these fees reasonable, considering statutory record retention requirements, the location of the records and the necessity of redacting sensitive information. Subject to one small exception, the Tribunal found that the fees quoted were reasonable.
Overall, it was found that an estimate of 2-4 minutes per page for redactions was reasonable and that the time involved in obtaining the records from offsite storage were properly included in the calculation of costs.
The owner argued that FCC 57’s fees effectively denied access to records, warranting a penalty. The Tribunal disagreed, finding that FCC 57 acted reasonably and in compliance with statutory obligations, providing justified fee estimates without intent to obstruct access.
Lastly, with respect to legal costs, FCC 57 was awarded $1,000, due to the owner’s persistence in raising governance issues beyond the Tribunal’s jurisdiction and the need to discourage frivolous or disruptive litigation.
Key Takeaways from this Decision
This decision provides valuable guidance on handling record requests within condominium communities. Condominium corporations, when responding to requests for records, should provide detailed and justified cost estimate for the cost to produce records. On the other hand, unit owners should endeavor to understand statutory retention periods and formats for condominium records to set realistic expectations and avoid unnecessary disputes. Furthermore, owners should not be using the Condominium Authority Tribunal to address governance issues.
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