The owners in a Whitehorse condominium development have won a partial victory in a lawsuit with the developer over unpaid condo fees.

The condo owners went to court to argue that the developer should have to pay condo fees because the developer profited from renting out unsold units.

Since 2005 owners of condominiums in the Falcon Ridge development have been paying condominium fees.  Those fees are now up to $190 a month.   The money is used for things like building maintenance and upkeep on common areas in the development.

But Brian Little, the developer that built the condominium complex, wasn't paying any condo fees even though his company still owned many of the units and was making income renting them out.

The residents went to court claiming the developer owed nearly $2 million in back condo fees, interest and penalty payments.

Yukon Supreme Court Justice Ron Veale ruled the developer must pay condo fees. However, Veale has recalculated the totals and is now ordering the condominium developer to pay $394,000.   

Condominium corporation president Helen Booth says it is an important and precedent-setting decision for all Yukon condominium owners. 

Veale says the developer will have to pay 18 per cent interest until the debt is paid..