Meatheringham v Gateway Redhead Operations Pty Ltd [2018] NSWCATCD 13

Meatheringham v Gateway Redhead Operations Pty Ltd [2018] NSWCATCD 13

The claimed $6.50 per week site fee increase was excessive because the operator did not establish to the Tribunal's satisfaction that its actual or projected outgoings and operating expenses justified that increase. A two-month comparison showing a 16% increase did not support an inference that expenses for the full 12 months would increase by the same margin, the operator had not carried out significant repairs or improvements since the previous increase, and the evidence justified only a CPI-based increase of 2.4%.

Jurisdiction
Australia
Judgment Date
11 April 2018
Procedural Posture
Residential (land Lease) Communities Application About Site Fee Increase / Application Lodged Pursuant to S 71 of the Residential (land Lease) Communities Act 2013 After Unsuccessful Mediation
Outcome
The Tribunal found the claimed increase excessive and reduced it to a CPI-based increase of 2.4%.
Legal Topics
['site Fee Increase' 'excessive Rent Increase' 'consumer Price Index' 'outgoings and Operating Expenses' 'repairs and Maintenance']
['residential Tenancy' 'residential Land Lease Communities' 'consumer and Commercial Law'] ['site Fee Increase' 'excessive Rent Increase' 'consumer Price Index' 'outgoings and Operating Expenses' 'repairs and Maintenance']

Case Brief

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Procedural Posture

Residential (land Lease) Communities Application About Site Fee Increase / Application Lodged Pursuant to S 71 of the Residential (land Lease) Communities Act 2013 After Unsuccessful Mediation

Legal Issues

  1. 1 ["Whether the respondent's notified site fee increase of $6.50 per week was excessive." 'Whether the respondent established actual or projected increases in outgoings and operating expenses sufficient to justify the claimed increase.' 'What reduced increase, if any, should apply to affected home owners.']

Ratio Decidendi

The claimed $6.50 per week site fee increase was excessive because the operator did not establish to the Tribunal's satisfaction that its actual or projected outgoings and operating expenses justified that increase. A two-month comparison showing a 16% increase did not support an inference that expenses for the full 12 months would increase by the same margin, the operator had not carried out significant repairs or improvements since the previous increase, and the evidence justified only a CPI-based increase of 2.4%.

Court Disposition

The Tribunal found the claimed increase excessive and reduced it to a CPI-based increase of 2.4%.

Orders

  • ['The claimed increase in site fees of $6.50 per week is excessive.' 'The amount of the increase is reduced to the amount determined by application of the following formula: Increase equals site fee at date of notice x 2.4%.' 'The site fees for each affected home owner must not exceed the amount calculated by...