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‘Business judgment’ rule extends to condo boards, appeal court says

Thursday, September 15, 2016 @ 8:00 PM | By Cristin Schmitz

Condominium directors challenged in court by unit owners can take comfort from a unanimous Ontario Court of Appeal ruling that endorses curial deference and expressly extends the “business judgment” rule to condo boards.

The business judgment rule, created in the context of for-profit businesses, applies to boards of condominium corporations, Ontario’s top court held for the first time: 3716724 Canada v. Carleton Condominium Corporation No. 375 2016 ONCA 650.

The appeal panel went on to overturn an Ontario Superior Court decision that last year granted an...