Can a society fine a member for a contravention of its rules and regulations?
British Columbia, Canada
The following excerpt is from Canuel v. Rainbow Community Estates Association, 2021 BCCRT 1248 (CanLII):
24. In Langas v. Sicamous Sands Resort Society, 2004 BCSC 398, the court found that a similar society did not have authority to fine a member for a contravention of the society’s rules and regulations because the old act and the society’s bylaws did not provide for fines, and the only mention of fines was contained in the society’s rules and regulations, which the parties had agreed to. The court noted that it was possible for parties to contractually agree to a penalty system, including the fines set out in the rules and regulations and agreed to by the parties. However, the court found that the society imposing the fines violated the principles of procedural fairness because the society did not provide adequate opportunity for the member to respond to the fines prior to a final decision being made.
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