The Cost of Installing Security Cameras can be Recovered as a Chargeback
Megan Mackey, B.Sc., J.D., Shibley Righton LLP's Condominium Law Group
The Cost of Installing Security Cameras can be Recovered as a Chargeback
A case comment on York Region Standard Condominium Corp. No. 1253 v. Hashemi
In this recent decision of the Ontario Court of Appeal, the court confirmed that the cost of installing or upgrading a security system can be recovered as a chargeback against the owner whose actions caused the condominium corporation to install the cameras.
In this dispute, the condominium's stairwells were being damaged and vandalised by graffiti. The condominium corporation needed to find out who was causing the damage so that the condominium could put an end to the behaviour and recover the cost of repairing the damage. Unfortunately, the condominium was unable to catch the offender and did not know who was responsible for the damage. The condominium installed security cameras so that it could monitor the stairwells.
The security footage revealed that tenants of a residential unit were vandalising the stairwells. The condominium started an action to evict the tenants and recover its costs. The tenants moved out shortly thereafter, and the condominium then sought to recover all of the costs it incurred from the owners of the unit in which the tenants resided.
The unit owners admitted they were responsible to pay for damage caused by their tenants but objected to many of the charges. In particular, the owners objected to reimbursing the condominium for the $15,000 spent installing security cameras and upgrading surveillance equipment.
There has previously been some debate as to whether the cost of installing or upgrading security systems can be charged back against unit owners. While many condominium corporations try to recover these types of costs from owners, unit owners typically object to the charges. Owners often claim that changes to security systems are upgrades to the common elements which should be paid by all unit owners.
It is true that individual unit owners are typically not liable to pay for upgrades to common elements; unit owners can only be required to reimburse the condominium for costs reasonably incurred to enforce the rules.
The Court of Appeal ordered the unit owners to pay all costs associated with the upgrades to the security system, including the cost of installing cameras in the stairwells. The court confirmed that improvements to a security system are not "upgrades" to the common elements if the improvements were required in order to enforce the rules. The court held that in this case, the cost of installing security cameras was necessary to permit the condominium to enforce the rules.
This decision is good news for condominium corporations. It reinforces the principle that all owners should not be required to pay costs attributable to conduct for which one unit owner is responsible. Also, by making owners accountable for the conduct of their tenants, it will force owners to be more careful when screening prospective tenants.
Megan Mackey is a litigation lawyer with Shibley Righton LLP. She advises condominium corporations, unit owners, developers, and insurers in all types of condominium disputes. She also acts in construction deficiency matters and property damage claims. Megan is a member of CCI Toronto’s Education Committee and is a frequent speaker on current condominium topics. In her spare time Megan can be found camping, playing soccer, and running.
Published in CondoNEWS - Fall 2017