CONDO OWNER WINS FIGHT FOR JUSTICE

by Dr. James Balderson, COLCO

A judge has set aside the dismissal of a claim against Dalex Forest Side Project Ltd., a Bosa company operated by Dale Bosa, one of Nat Bosa's sons. (Port Coquitlam Small Claims Court, Wednesday, October 29, 2002.). Sybil Goebel, the owner of a Bosa leaky rotten condo, claims $10,000 for damages from leaks and rot to her condo at 1650 Grant Avenue in Port Coquitlam. Goebel paid $14,000 as her share of the cost to repair damage caused by the faulty construction of Bosa's 40-unit condominium complex known as Forest Side.

Goebel argued that she had been denied justice by the earlier dismissal. The judge agreed that Goebel's case should not have been dismissed. In setting aside the earlier dismissal, the judge found that Goebel had informed the court by fax several days before the earlier trial date that she would not be able to attend because she was out of Canada and that she could not get back into Canada because of an immigration matter.

Goebel was also seeking $4,000 from Mender Property Services, the company appointed by Dalex to manage the Forest Side complex. Goebel argued Mender had mismanaged the affairs of the condo complex, including a botched claim against the now bankrupt New Home Warranty Program which was owned, controlled and directed by the Canadian Home Builders Association -British Columbia, which in turn includes the Greater Vancouver Home Builders Association.

Goebel also alleged Mender and Dalex had intertwined business interests, creating a conflict of interest for Mender which should have been obligated to work in the best interests of the condo owners, not the developer. However, the judge found that the $4,000 claimed against Mender was an extension of the $10,000 claim against Dalex so that Goebel could recover her total cost of repairs and would thereby exceed the maximum allowed in small claims court ($10,000). Goebel filed her claims because the Forest Side Strata Corporation, LMS 1841, failed to launch a lawsuit against Dalex and Mender to recover the cost of repairs.

The total cost to repair the leaks and rot at Forest Side was about $750,000. Negotiations between the Strata Corporation and Bosa produced an offer of $154,626 from Dalex to settle the dispute between Dalex and the owners, and to ward off any further litigation against Dalex by the owners. Goebel was unable to convince the Strata Corporation to initiate litigation in order to get more money from Dalex.

The owners of Forest Side decided to accept the offer from Dalex but then Dalex insisted that all the owners individually sign a "release and hold harmless" agreement and that Goebel's claim be discontinued. Many owners in Forest Side are upset with Goebel because they view her as blocking the proposed settlement money from Dalex. An unplanned encounter between the author and one of the owners in front of the Forest Side condos on Thursday immediately following the court decision resulted in a torrent of abusive language directed at Goebel.

Goebel was unwilling to drop her case against Dalex because she thought she stood to gain more by seeking justice in court. The judge decided that Goebel's case against Bosa Dalex has merit worthy of a trial, and if a binding settlement agreement is not reached, or if the Strata Corporation has not initiated litigation against Dalex before January 31, 2003, the judge will set the matter down for trial. At press time Dalex and the Strata Corporation were unwilling to pay Goebel $10,000 to settle her claim. Brian Scott, Chairman of the Forest Side Strata Corporation, told COLCO that the owners considered purchasing Goebel's condo but objected to what they considered to be an unreasonable asking price.

The Bosa Dalex Forest Side leaky rotten condo building was found to have several building envelope defects that allowed leaks and rot. Furthermore, a chemical analysis of the stucco on Forest Side showed that it contained soap that can weaken stucco while making it easier and faster to apply. In researching her case, Goebel discovered that the report from Levelton Engineering regarding soap in the stucco had been suspiciously altered, apparently to cover up the results. Barclay McLeod Architect Inc. designed The Forest Side complex.

The latest news as of February 2003 is that:

The Strata Corporation filed a notice of claim against the developer that resulted in the judge dismissing Goebel's action.

Furthermore, Goebel sold her unit with a proviso that any recovery of funds from the strata corporation's litigation would flow to her, net of assessments for legal fees.

Dr. James Balderson is the organizer of COLCO: The Coalition Of Leaky Condo Owners. The full text of this release and any follow up may be read on the COLCO web site: www.myleakycondo.com.