Dysfunctional Condo Boards: (Part One) Preventing Harmful Conflict

The following are excerpts from letters sent to condoinformation.ca an independent website set up to help condo owners:

I was elected to the Board and was the first new member that this Board had had in 8 years. They never accepted me, never considered what I had to say, had meetings without me and I was totally isolated…

Myself and another Board member don't agree with what the others and especially the president are deciding because they're just throwing money at problems that could be solved with better communication and a bit of leg work on the part of our staff. But the two of us just vote with them, in my case because I am afraid of reprisals….

Our Board of Directors resembles mafia like boards controlled by a godfather president. The president of my condo has controlled the board for 20 years [… ] As well, he has installed the soviet style politburo cronies who don’t ask questions and only raise their hands when asked.

Does any of this sound familiar? Of the 1, 144 letters sent to the site, more than half discussed problems with condo boards.

When condo board members are caught in conflict the consequences can be far-reaching. Decisions are postponed and the property deteriorates as problems are not addressed. Owners wonder what’s going on and become frustrated with the lack of communication from the board. Meetings may be overly long and frustrating, causing stress for members and their families.

Why do some condo boards have engaged, hardworking members who protect the best interests of the owners, while others are mired in conflict and dysfunction? If you are a condo board member, what can you do to make sure that you and your fellow members can work together effectively?

Whether you are on a newly formed board, or your board has been together for some time, there are steps you can take to make sure that you work together effectively and respectfully.

Spend some time getting to know one another. You don’t have to become best friends with your fellow board members; you don’t necessarily even have to like them. But knowing a little bit about their backgrounds and about who they are as people can go a long way to insure that your interactions stay respectful. Knowing that Sally spends her weekends looking after her elderly parents, or that Jim did a tour of duty in Afghanistan, might help keep things in perspective when differences of opinion arise.

Knowledge is power. Familiarize yourself with the condo act, and with the rules and procedures of your own condo. Understand your rights as an owner, and your responsibilities as a board member.

Decide on ground rules for your interactions. Resentment can arise when people have different expectations for how meetings will be run. Taking a little time to work things out in advance can save a lot of time and effort down the road. Will all members agree to do their homework and be prepared for meetings? How long will discussions go on before a vote is called? When decisions are reached, will the board members support one another, even if they don’t agree with the outcome? Should members agree to keep their discussions confidential, and to avoid negative gossip about internal group dynamics? Committing in advance to respectful conduct helps to ensure that meetings stay focused and productive.

Next time: Some typical problems, and how to move beyond them.

Note:  I formulated these ideas with the help of Dr. Pamela Hudak, and a slightly different version of this article appeared in the Spring 2012 issue of The Condo Voice, a publication of the Canadian Condominium Institute.  Pam and I work together as Principled Dispute Resolution and Consulting.  Contact us if you’d like to learn more about getting your dysfunctional condo board working again. 

Conflicts that Should have been Mediated: (2) The Elusive Parrot

Photo credit:  SantaRosa OLD SKOOL (via flickr)

Every now and then I hear about a conflict that wasn’t mediated but should have been.  Mediation would have saved the participants time, money and aggravation.

What is the cost of breaking a rule?  If you live in a condo in Ontario the cost can be very high indeed.  One of the provisions of Ontario’s Condominium Act is that condo owners who fight compliance applications can be obliged to pay the condominium board’s legal costs, as well as management fees and surveillance costs.  An owner who doesn’t pay up might find a lien placed on his unit.  The reason for this extraordinary provision (which is not enjoyed by individuals or corporations) is to discourage owners from pursuing frivolous lawsuits against boards.  After all, the legal costs for a condo board are shared by all owners, and it would not be fair for the corporation as a whole to suffer because of one litigious owner.  Condo owners who go to court over compliance issues have to be pretty confident that they have a strong case.

(Please note that I am not a lawyer and the above paragraph is not intended to be taken as legal advice!  If you are a condo owner in dispute with a board, please consult a lawyer, preferably one with experience in this area.)

The cost of breaking the “no pets” rule for their condo building almost cost Michael and Margarita Bazilinsky more than $40,000.  At some point, late in 2010, judging by squawks heard in the corridor, a parrot took up residence in the Bazilinskys’ unit.  Mr. Bazilinksy claims that he was merely parrot-sitting for a friend, and he supplied affidavits from three independent parties (a personal trainer, a real estate agent and an electrician) affirming that there was no parrot in the unit.  The board inspected his unit in early 2011 and found no evidence of a parrot.  They were convinced, however, that Bazilinskys had smuggled the parrot out of the unit for the day, and pointed to what they deemed “suspicious” footage on a surveillance camera of the Bazilinskys taking a covered box out of their residence.  In August 2011 Mr. Bazilinsky consented to an order to remove the elusive parrot, and to pay the board’s court costs of $3000.

The board then exercised their right under the Condominium Act to recover “actual additional costs” related to their eviction of the parrot.  They placed a lien on the Bazilinskys’ unit for $41,599.  Last month a judge ruled that this amount was excessive, and ordered Mr. Bazilinsky instead to pay $6500 of the board’s legal fees, less the $5000 he had to spent in court costs to bring the recent motion.

I learned about this case from an article in the Globe and Mail by Ian Merringer, who mentions that both parties claim that the other party had waived opportunities for mediation.  The Condominium Act includes a mediation process intended to resolve disputes before legal costs become excessive for either party.  From the brief description and the outline of facts presented in the article, it would seem that both parties had something to gain from an attempt to mediate.  Even if the Bazilinskys had eventually to find another home for the parrot, a mediated agreement to that effect would have cost significantly less than the legal costs they eventually incurred.  Mediation would have saved money and probably also time for the board.  And let’s not forget that the Bazilinskys and the board members are neighbours who are likely to see one another in the corridors and other public areas of the building.  I can’t imagine that their interactions now are anything but tense.  While they might never have been friends in the first place, listening to each other and working towards a mediated agreement might at least have given them the dignity of mutual respect.





Read about another Conflict that Should have been Mediated (curiously, also involving an animal.)