Rita Sahade v The Owners – Strata Plan No 62022 and Ors [2015] NSWCATCD 5

Rita Sahade v The Owners – Strata Plan No 62022 and Ors [2015] NSWCATCD 5

Although the original allocation of unit entitlements was unreasonable in light of the respective lot values, the Tribunal is not compelled to order reallocation. On balance, considerations of ongoing scheme management, prevention of deadlock, and stable control are such that discretion should not be exercised to reallocate unit entitlement where this would fundamentally alter the balance between lot holders and risk dysfunctional management.

Jurisdiction
Australia
Judgment Date
13 January 2015
Procedural Posture
Application for Reallocation of Unit Entitlements in Strata Scheme / Remitted for Fresh Determination After Court of Appeal
Outcome
Application dismissed
Legal Topics
['unit Entitlement Reallocation' 'management and Control of Strata Schemes' 'discretion Under Strata Schemes Management Act 1996']
['property Law' 'strata Law'] ['unit Entitlement Reallocation' 'management and Control of Strata Schemes' 'discretion Under Strata Schemes Management Act 1996']

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Procedural Posture

Application for Reallocation of Unit Entitlements in Strata Scheme / Remitted for Fresh Determination After Court of Appeal

Legal Issues

  1. 1 ['Whether the original allocation of unit entitlements was unreasonable as at registration' 'Whether, if so, the unit entitlements should be reallocated' 'What is the appropriate allocation based on the respective lot values' 'Whether considerations of scheme management/control are relevant']

Ratio Decidendi

Although the original allocation of unit entitlements was unreasonable in light of the respective lot values, the Tribunal is not compelled to order reallocation. On balance, considerations of ongoing scheme management, prevention of deadlock, and stable control are such that discretion should not be exercised to reallocate unit entitlement where this would fundamentally alter the balance between lot holders and risk dysfunctional management.

Court Disposition

Application dismissed

Orders

  • ['The application for reallocation of unit entitlement is dismissed.']