THE OWNERS - STRATA PLAN No 64972 v RINBAC PTY LTD [2009] NSWSC 745

THE OWNERS - STRATA PLAN No 64972 v RINBAC PTY LTD [2009] NSWSC 745

The appeal against the Magistrate's judgment on the substantive issues fails because, although the original Management Agreement constituted an impermissible delegation of statutory functions and was void, the Deed of Variation was intended to and did create a new, compliant and valid caretaker agreement under the...

Source-derived case information.

Parties
Plaintiff: The Owners - Strata Plan No 64972; Defendant: Rinbac Pty Ltd
Jurisdiction
Australia
Judgment Date
31 July 2009
Procedural Posture
Appeal / Judgment After Hearing of Appeal From Local Court Decision
Outcome
Appeal dismissed in part; varied in part
Legal Topics
Strata Schemes, Management Agreements, Delegation of Functions, Caretake Agreements, Costs
Equity Strata Title Law Strata Schemes Management Agreements Delegation of Functions Caretake Agreements Costs

Source-derived case record

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 12 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

The Owners - Strata Plan No 64972

Plaintiff

Rinbac Pty Ltd

Defendant

Procedural Posture

Appeal / Judgment After Hearing of Appeal From Local Court Decision

Legal Issues

  1. 1 Whether the Management Agreement amounted to an unlawful delegation of the Owners Corporation's functions under s 13(3) of the Strata Schemes Management Act 1996
  2. 2 Whether the Deed of Variation was effective to create a valid agreement in compliance with the Strata Schemes Management Act as amended
  3. 3 Whether so-called discrete agreements existed between the parties for the provision of certain services and fees

Ratio Decidendi

The appeal against the Magistrate's judgment on the substantive issues fails because, although the original Management Agreement constituted an impermissible delegation of statutory functions and was void, the Deed of Variation was intended to and did create a new, compliant and valid caretaker agreement under the amended legislation. Findings as to the existence of discrete agreements and rejection of certain legal errors in their establishment were open on the evidence. The appeal as to costs is allowed because the offers of compromise were not left open for a reasonable time and the Magistrate’s costs orders did not properly reflect the outcome and exercise of discretion.

Court Disposition

Appeal dismissed in part; varied in part

Orders

  • The appeal against the decision of the Magistrate given on 17 March 2008 is dismissed.
  • The order of the Magistrate of 5 May 2008 is varied: the Owners Corporation must pay Rinbac's costs of Rinbac's claims on the ordinary basis; Rinbac must pay the Owners Corporation's costs of its cross-claim on the ordinary basis.