2022 13-1 February Condo Corner Real Estate

Condo corner: What is the CAT?  No, it’s not a pet.

By David Lu

In the condo world we are still dealing with the ever-changing landscape that COVID-19 is bringing us. The changes the condo industry is currently experiencing with COVID are on top of massive changes that occurred in 2017 and 2018. Going into detail about what all the changes were would be something akin to a small book. But I want to take this column to talk about one particular change, the Condominium Authority Tribunal (CAT).

By the way, the joke is not lost on many in the industry; you sometimes see pictures of cats on blogs talking about the CAT.

The CAT is the first fully online tribunal in Ontario. Modeled on the Civil Resolution Tribunal in B.C., the CAT is designed to provide fast, cheaper (by legal standards) and more convenient process to resolve certain disputes at condominiums. Not all condominium disputes can be referred to the CAT, however.

When the tribunal was first created back in November 2017, the disputes that the CAT could hear were extremely limited, but over time the scope of disputes has expanded. Right now, the CAT can hear disputes involving condominium records, pets and other animals, parking and storage issues, and more. Over time, the expectation in the industry is that the jurisdiction of the CAT will continue to expand to include additional categories of condominium disputes.

The CAT procedure has three general stages, all of which are conducted on an online portal system. Stage 1 is the negotiation stage. During this stage, the system allows the parties to exchange messages, documents, and settlement offers in an effort to resolve the matter. If the matter is not resolved, either party can move the matter to Stage 2, mediation. At this stage, a member of the CAT joins the proceedings and will attempt to assist the parties in reaching a resolution.

The mediator will use the same portal to exchange messages with all parties. If mediation is not fruitful, the matter goes to Stage 3, a tribunal decision. The particulars of the Stage 3 process will vary from case to case, but the general process is a “written” online hearing, where the parties will provide their arguments and evidence in writing through the online portal within a certain timeline.  

The CAT has been in operation for a few years now and overall, I would say that the online tribunal has done its job. It has provided stakeholders in the condominium world with a much faster and cheaper way to resolve disputes. A typical CAT hearing should take about four to five months from start to finish, including the decision being released, although some are longer due to specific circumstances. In the legal world, this is lightspeeds faster than a more traditional court process, which usually takes upwards of a year or longer.

Of course, the CAT is not perfect. There are some areas where I feel the CAT could be improved—such as rules and regulations relating to costs incurred by the parties—which I can discuss in detail in another column. Nonetheless, I feel the CAT is the way forward for many types of disputes, though not all. The pandemic has shown us that many things we previously thought could not be done virtually can indeed be done online, in a faster and cheaper way.

David Lu is an Associate at Davidson Houle Allen LLP, a boutique Condominium Law firm serving Eastern Ontario.