• |
the owners corporation only held cash at bank of about $45,950; |
• |
the net asset position of the owners corporation was -$422,985.12; |
• |
net owners’ funds held by the owners corporation was -$23,782.59; |
• |
creditors of the owners corporation were not paid on time and at one point there was nearly $30,000 worth of outstanding invoices to multiple creditors; |
• |
historically, lot owners (unit owners) had been slow to pay levies as a result of which the owners corporation had to repeatedly take steps to coerce some of the owners to pay their levies including by issuing letters of demand or taking legal action against them; |
• |
even though the owners corporation would be obliged to raise a special levy to pay the costs of its former lawyers if it was ordered to do so, there was no guarantee that the levy would fall due within a reasonable period and the owners corporation could decide for the levy to be payable by installments over a lengthy period; |
• |
the lot owners had not provided an undertaking to pay any levies as and when they fell due and within a reasonable time frame; |
• |
the building was still littered with defects which would cost approximately $750,000 to repair and the owners corporation had not struck a levy to raise funds to cover the cost of those repairs; |
• |
the owners corporation had not raised a special levy to meet any adverse costs order that might be made against it in the case; |
• |
the former lawyers would have difficulty recovering their costs from
the owners corporation if the owners corporation chose not to pay those
costs; the owners corporation did not own any real estate; |
• |
the former lawyers would most likely incur over $200,000 in legal costs to defend the case, most of which would be payable by the owners corporation if it was unsuccessful. |