Premium Building Management Pty Ltd v The Owners - Strata Plan No 69204 [2019] NSWDC 312

Premium Building Management Pty Ltd v The Owners - Strata Plan No 69204 [2019] NSWDC 312

A binding building management agreement, complete in its essential terms, was entered into on 23 May 2017. The agreement was not rendered invalid by lack of execution under s 67 of the Strata Schemes Management Act 2015 (NSW); statutory language was directory, not prohibitory. PBM may alternatively rely on August 2017 as contract formation if primary case failed. Assessment of loss of profit damages did not require further allocation of overheads in this instance.

Parties
First Plaintiff: Premium Building Management Pty Ltd; Second Plaintiff: Premium Strata Pty Ltd; Defendant: The Owners – Strata Plan No 69204
Jurisdiction
Australia
Judgment Date
10 July 2019
Procedural Posture
Civil / Principal Judgment After Trial
Outcome
Judgment for the plaintiff (PBM) for loss of profit
Legal Topics
Building Management Agreements, Contract Formation, Statutory Illegality, Estoppel, Damages for Loss of Profit, Pleading Requirements
Contract Building and Construction Strata Law Building Management Agreements Contract Formation Statutory Illegality Estoppel Damages for Loss of Profit +1 more

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Parties

Premium Building Management Pty Ltd

First Plaintiff

Premium Strata Pty Ltd

Second Plaintiff

The Owners – Strata Plan No 69204

Defendant

Procedural Posture

Civil / Principal Judgment After Trial

Legal Issues

  1. 1 Whether and when a binding building management agreement came into existence and its terms
  2. 2 Whether agreement invalid for non-compliance with s 67 of Strata Schemes Management Act 2015 (NSW)
  3. 3 Whether estoppel precluded Owners Corporation from denying a binding agreement

Ratio Decidendi

A binding building management agreement, complete in its essential terms, was entered into on 23 May 2017. The agreement was not rendered invalid by lack of execution under s 67 of the Strata Schemes Management Act 2015 (NSW); statutory language was directory, not prohibitory. PBM may alternatively rely on August 2017 as contract formation if primary case failed. Assessment of loss of profit damages did not require further allocation of overheads in this instance.

Court Disposition

Judgment for the plaintiff (PBM) for loss of profit

Orders

  • Plaintiff to serve on defendant short minutes of orders within 7 days reflecting reasons for judgment, quantum and costs.
  • Defendant to respond as to consent or objection within further 3 days.