A BC strata was the target of legal action because a homeowner was charged a fee for a feature he couldn’t use.
Werner Suter is the co-owner of a strata unit. He told the BC Civil Resolution Tribunal that he was being charged a fee for geothermal heating and cooling expenses even though some units, including his, aren’t equipped with geothermal systems.
Suter asked the tribunal for an order to prevent the strata from charging the fee.
Meanwhile, the strata told the tribunal that it acted “reasonably and fairly” and has complied with bylaws in charging the fee to all owners. It asked the tribunal to dismiss the dispute.
According to the decision posted online, 44 units were built between 2014 and 2016 that used geothermal heating and cooling. In 2021, 25 new units were added, but they don’t use geothermal heating and cooling but have natural gas furnaces and air conditioning.
The annual operating budget includes the geothermal fee, which in 2021, 2022, and 2023 ranged between $35,100 and $36,100. Individually, Suter says that non-geothermal unit owners pay between $30 and $61 a month. For Suter, it’s around $41 per month.
A strata meeting was held after Suter complained about the fee. A vote was held on whether or not to separate the units into geothermal and non-geothermal lots.
“The parties agree that the bylaw amendment resolution required ¾ approval to pass. It was defeated at the SGM, with 30 votes in favour and 25 against,” the tribunal decision said.
The tribunal had to sift through similar cases and weigh whether Suter was the victim of significant unfairness because of the fee. It added that, in some cases, strata unit owners pay fees that benefit the entire strata community. In this case, non-geothermal unit owners did not benefit from this fee.
Another line in the decision adds insult to injury.
“The geothermal unit owners also undisputedly receive free yearly maintenance of their geothermal systems under the strata’s contract with its geothermal supplier, while non-geothermal unit owners must arrange and pay for their own heating and cooling system maintenance.”
Despite the strata’s plea to dismiss the case, the tribunal ordered the strata to stop charging fees associated with the geothermal heating and cooling system for all non-geothermal unit owners and to reimburse Suter for $225 in tribunal fees.
If you were interested in this case, check out this one about another BC strata electric vehicle charging a fee that had similar results.