Vernon woman sues for $330,000 after violating strata bylaw to run B&B

A Vernon woman, who ran a bed and breakfast from her home, has failed in her attempt to sue her Strata for $330,000 after being barred from running her business.

Hedda Ann Dobson obtained a business license from the City of Vernon to run the bed and breakfast from her Tronson Road home, but her Strata received complaints from other residents and took action.

Strata K804 said it was against its bylaws to run a bed and breakfast at Dobson residence, and in turn, she accused the Strata of unfairly targeting her.

The details are laid out in a BC Civil Resolution Tribunal decision and indicate an acrimonious relationship where the Strata at one point agreed to raise $36,000 to cover the legal costs of declaring Dobson a vexatious litigant, in an effort to stop her from suing people.

The decision said Dobson bought an almost one-acre plot of land at the gated community Canadian Lakeview Estates in 1992 and built herself a house. BC Assessment values the property at $1.2-million.

In 2019, she set up Elsken B&B, which, due to the pandemic, opened in June 2022.

However, the Strata received a complaint and, following a hearing in 2023, ordered Dobson to stop running her bed and breakfast or face fines. It appears she continued because the Strata issued two more notices for breaching its bylaws over the bed and breakfast.

In 2024, Dobson began legal action against the Strata, arguing for $330,000 in compensation.

She claimed $110,000 for property upgrades, $30,000 for lost income, $40,000 in legal fees, $50,000 for emotional distress and $50,000 she’d borrowed from her parents to “remain solvent.”

She also wanted $50,000 for her loss of beach access and for the Tribunal to grant her permission to resume operating her bed and breakfast.

However, the Tribunal didn’t agree and found her bed and breakfast was a contravention of the Strata’s bylaw, which stated properties had to be “entirely for residential use.”

Dobson accused the Strata members of picking and choosing which bylaws to enforce and colluding against her.

However, the Tribunal wasn’t swayed.

“There is no evidence the strata treated Ms. Dobson significantly unfairly by colluding to shut down her B&B,” the Tribunal ruled. “I find the strata council did not act significantly unfairly towards Ms. Dobson by responding to complaints made about her bed and breakfast, and taking enforcement action.”

Dobson also accused the Strata of failing to advocate for her when the Lakeview Estates Community Association removed her beach access.

A separate legal filing said the property owner has an easement to use the private beach, but guests of the bed and breakfast aren’t allowed to access the beach.

The decision didn’t give any details of what took place, but said Dobson did have her beach access reinstated.

In September 2024, the Strata held a special general meeting with the aim of raising $36,000 to cover the legal fees to declare Dobson a “vexatious litigant.”

The Strata said the move was necessary because she’d filed numerous “frivolous legal proceedings.”

Court records show Dobson filed nine suits in small claims court that year. One accused a Strata council member of a lack of due diligence over the beach access issue. Dobson had wanted $35,000, but the court dismissed it and ordered her to pay $50 to the defendant.

The decision said at the special meeting the Strata voted in favour of the $36,000 special levy to declare Dobson a vexatious litigant, but Dobson argued it hadn’t followed protocol as members weren’t allowed to join remotely.

The Tribunal agreed.

Dobson said that as the meeting was deemed invalid, she should receive the $36,000 raised by and divvy it up as she saw fit.

The Tribunal had different ideas.

“I find it would be highly irregular to make Ms. Dobson’s requested monetary order, leaving it to her to decide how to divide the amount between owners based on her perception of what is fair,” the Tribunal ruled.

Instead, the Tribunal ruled a new meeting should take place so members could vote on whether to raise money to have Dobson declared a vexatious litigant. The Tribunal said the resolution should be “neutrally-worded.” 

Dobson made other claims that the Tribunal rejected, and the Strata’s request for $4,100 in legal fees was found to predate the current dispute.

Ultimately, the Tribunal dismissed all of Dobson’s claims for monetary compensation and ordered the Strata to hold a new special meeting.

The Tribunal also ruled that while it wouldn’t ordinarily order someone to stop doing something that bylaws already prohibit her from doing, this situation was different.

“Given the parties’ long and difficult relationship and for the sake of clarity, I order Ms. Dobson not to operate her B&B,” the Tribunal said.