Question
Winston County Condominium Corp. No. 221 (WCCC #221) was formed just over a year ago, with all the usual condominium documentation. Contained in its declaration
Winston County Condominium Corp. No. 221
(WCCC #221) was formed just over a year ago,
with all the usual condominium documentation.
Contained in its declaration was a reference that
common expenses included municipal water charges,
unless the same were separately metered for each
unit. There were 91 units in the building, one of
which was a ground-floor restaurant unit. The
restaurant represented 10 percent of the floor space,
and therefore 10 percent of common expenses. Each
of the other 90 dwelling units would bear 1 percent
of common expenses.
After examination of the accounts for the first year
of operation, WCCC #221 found that the restaurant
accounted for 47 percent of water charges, and the
amount budgeted by the corporation of $50,000 would
fall short of actual costs by $18,500. The directors
passed a motion for a special levy on the restaurant
unit, and a motion that a meter be installed on the
pipes to and from the restaurant unit. The action was
ratified by the unit holders 90 to 0, with one abstention
in protest.
The owner of the restaurant unit came before the
courts for relief, stating that water rates had figured
into her calculations on whether to purchase the unit,
and that the same calculations must have figured into
WCCC #221's decision to sell the unit to her. WCCC
#221 had the power to write what it wished into its
declaration, and she now holds it to what it has written.
The corporation had set the price for her commercial
unit, knowing it would contain a restaurant. The
restaurant owner acknowledged she was prepared to
suffer her fate, should WCCC #221 on a vote decide to
install meters to all units.
Elaborate on the issues in the arguments and render
a decision on behalf of the court.
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