Balancing Confidentiality and the Corporation’s Duty to Inform

James Davidson recently wrote an article for publication by Condo Business Magazine in which Mr. Davidson commented on a recent decision of the Ontario Human Rights Tribunal, Morley v. London Condominium Corporation No. 2.

The case dealt with confidentiality provisions in a settlement agreement between a condominium corporation and one of its owners. The owner had alleged that limitations on access to her unit constituted discrimination on the basis of a disability. In the minutes of settlement, the condominium corporation agreed to install a new entrance ramp to the owner’s unit.

Consistent with its disclosure obligations under the Condominium Act, the corporation subsequently advised all owners in a newsletter, that it had installed a new entrance ramp (at the corporation’s expense) as part of resolution of a human rights matter. The tribunal said that this was a breach of the confidentiality provisions in the settlement agreement and ordered the corporation to pay the owner $1,000.

The takeaway from the case for condominium corporations dealing with confidentiality provisions is that making it very clear in the agreement that the settlement will be disclosed to the condominium’s owners is a good option.

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