Croyden & Anderson v The Owners – Strata Plan No 1583 [2015] NSWCATCD 104

Croyden & Anderson v The Owners – Strata Plan No 1583 [2015] NSWCATCD 104

The lot owners' refusal to consent to repeal of Special By-Law 1 was not unreasonable. Although the Owners Corporation had responsibilities to manage common property and finances and the car spaces had financial value, the by-law had been approved in 1991, operated for many years without controversy, conferred valuable proprietary interests that enhanced the lot owners' properties, and no material change or compelling purpose beyond revenue raising was shown. The proposed repeal would cause financial loss and no compensation was offered. The interests of all owners did not outweigh the rights and reasonable expectations of the lot owners, so Adjudicator Buckley's orders were revoked and...

Jurisdiction
Australia
Judgment Date
01 September 2015
Procedural Posture
Appeal From Strata Schemes Adjudicator Decision Concerning Repeal of an Exclusive Use by Law / Final Determination
Outcome
Appeal allowed; Adjudicator Buckley's orders revoked and the Owners Corporation's application to the Adjudicator dismissed.
Legal Topics
['exclusive Use by Law' 'common Property Car Spaces' 'unreasonable Refusal to Consent' 'repeal of by Law' 'proprietary Interest' 'compensation']
['strata Law' 'administrative Law'] ['exclusive Use by Law' 'common Property Car Spaces' 'unreasonable Refusal to Consent' 'repeal of by Law' 'proprietary Interest' 'compensation']

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Procedural Posture

Appeal From Strata Schemes Adjudicator Decision Concerning Repeal of an Exclusive Use by Law / Final Determination

Legal Issues

  1. 1 ["Whether the Croydens and Ms Anderson unreasonably refused to consent to the Owners Corporation's proposal to repeal Special By-Law 1." 'Whether Adjudicator Buckley erred in determining that the lot owners had unreasonably refused consent to the repeal of Special By-Law 1.' 'Whether the interests of all owners in the use and enjoyment of their lots and common property outweighed the rights and reasonable expectations of the lot owners deriving a benefit under Special By-Law 1.']

Ratio Decidendi

The lot owners' refusal to consent to repeal of Special By-Law 1 was not unreasonable. Although the Owners Corporation had responsibilities to manage common property and finances and the car spaces had financial value, the by-law had been approved in 1991, operated for many years without controversy, conferred valuable proprietary interests that enhanced the lot owners' properties, and no material change or compelling purpose beyond revenue raising was shown. The proposed repeal would cause financial loss and no compensation was offered. The interests of all owners did not outweigh the rights and reasonable expectations of the lot owners, so Adjudicator Buckley's orders were revoked and...

Court Disposition

Appeal allowed; Adjudicator Buckley's orders revoked and the Owners Corporation's application to the Adjudicator dismissed.

Orders

  • ['Pursuant to Section 181(3) of the Strata Schemes Management Act 1996 the orders made by Adjudicator Buckley on 19 December 2014 in matter SCS 14/23943 are revoked.' 'Pursuant to Section 181(3) of the Strata Schemes Management Act 1996 the application to the Adjudicator made in matter SCS 14/23943 by the Owners...