Date published: 04/04/2024

A claim from a syndicate of co-owners gone sour

In a recent case involving the Syndicat de la copropriété du 780 des Bosquets (hereafter referred to as the Syndicate) and one of its co-owners, the Honourable Judge Luc Huppé of the Court of Quebec shed light on a rather surprising course of action by the Syndicate.

For an unpaid amount of $65.23 in common expenses, the Syndicate not only filed a lawsuit for this modest sum but also claimed an additional $1,794.99 in extrajudicial legal fees for its attorneys, bringing the total claim to $1,860.22.

As the co-owner did not respond to the claim, the Syndicate's attorneys moved for a default judgment. Moreover, this legal action followed the registration of a legal hypothec and the publication of a notice to exercise a hypothecary right against the co-owner’s unit, valued at $167,000.

The case took a particularly poignant turn when it was revealed that the co-owner was undergoing cancer treatment at the time and had since passed away. Appointed as the liquidator of the estate, the deceased's sister discovered the statement of claim by chance. She paid the arrears of common expenses and took steps to challenge the Syndicate's claims, particularly the attorney’s fees.

It emerged that the declaration of co-ownership contained no provision allowing the Syndicate to claim such legal fees, and one of the Syndicate’s attorneys admitted that the claim was debatable. Ultimately, the court ruled in favor of the deceased co-owner’s sister, as liquidator, dismissed the default judgment request, and ordered the Syndicate to pay court costs.

This case underscores the importance of the principle of proportionality set out in Article 18 of the Code of Civil Procedure, which requires judicial proceedings to be proportionate to the nature and complexity of the case, taking into account the costs and time involved. It also highlights the obligation of any syndicate of co-owners to ensure that their legal actions remain fair, necessary, and aligned with the intended purpose, avoiding disproportionate and unjustified legal fees.

In conclusion, this judgment, rendered by the Court of Quebec, serves as a relevant example of the necessity to respect the principle of proportionality in judicial proceedings. For those wishing to delve deeper into this decision, the full judgment  is available for consultation.