The Owners - Strata Plan No 43551 Walter [2003] NSWSC 1177

The Owners - Strata Plan No 43551 Walter [2003] NSWSC 1177

The lot holders are necessary parties to a claim in negligence against the builder of the strata plan, as the Owners Corporation acts as agent and section 227 only permits proceedings in relation to common property where all lot owners are jointly entitled. In the absence of such entitlement, the lot holders themselves must be joined as plaintiffs to the extent of their claims.

Parties
Plaintiff: The Owners - Strata Plan No 43551; Defendant: Walter Construction Group Ltd
Jurisdiction
Australia
Judgment Date
12 December 2003
Procedural Posture
Civil / Hearing of a Separate Question Regarding Necessary Parties
Outcome
The lot holders are necessary parties.
Legal Topics
Strata Title, Agency, Procedural Requirements, Standing, Economic Loss, Necessary Parties
Property Law Civil Procedure Strata Title Agency Procedural Requirements Standing Economic Loss Necessary Parties

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Parties

The Owners - Strata Plan No 43551

Plaintiff

Walter Construction Group Ltd

Defendant

Procedural Posture

Civil / Hearing of a Separate Question Regarding Necessary Parties

Legal Issues

  1. 1 Whether a lot holder in a strata plan is a necessary party to a claim in negligence against the builder of the building comprising the Strata Plan
  2. 2 Whether the Owners Corporation has standing to sue in its own name in respect of alleged defects to the common property
  3. 3 Interpretation and application of section 227 of the Strata Scheme Management Act 1996 regarding proper plaintiffs

Ratio Decidendi

The lot holders are necessary parties to a claim in negligence against the builder of the strata plan, as the Owners Corporation acts as agent and section 227 only permits proceedings in relation to common property where all lot owners are jointly entitled. In the absence of such entitlement, the lot holders themselves must be joined as plaintiffs to the extent of their claims.

Court Disposition

The lot holders are necessary parties.

Orders

  • The relevant lot holders will need to be joined as plaintiffs to the extent they wish to make a claim.
  • Parties to bring in short minutes and deal with costs.