The Owners - Strata Plan 5709 v Andrews [2009] NSWCA 189

The Owners - Strata Plan 5709 v Andrews [2009] NSWCA 189

The appeal was allowed because the strata managing agents appointed under s 162 exercised the owners corporation's functions in determining the relevant levies and initiating recovery action. Mr Patman understood that the functions of the owners corporation were vested in him and exercised them after consulting the lot owners. Bright and Duggan's appointment was not limited by the draft agreement. Because the functions were exercised by strata managing agents appointed to exercise all functions of the owners corporation, the general meeting requirements in ss 76(4) and 80D did not apply.

Jurisdiction
Australia
Judgment Date
10 July 2009
Procedural Posture
Appeal From District Court Proceedings for Unpaid Strata Levies, Interest and Costs Under the Strata Schemes Management Act 1996 / Court of Appeal Judgment
Outcome
Appeal allowed.
Legal Topics
['appointment of Strata Managing Agents Under S 162' 'exercise of Owners Corporation Functions' 'validity of Strata Levies' 'general Meeting Requirements' 'recovery of Unpaid Contributions and Interest']
['strata Schemes' 'civil Procedure' 'debt Recovery'] ['appointment of Strata Managing Agents Under S 162' 'exercise of Owners Corporation Functions' 'validity of Strata Levies' 'general Meeting Requirements' 'recovery of Unpaid Contributions and Interest']

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Procedural Posture

Appeal From District Court Proceedings for Unpaid Strata Levies, Interest and Costs Under the Strata Schemes Management Act 1996 / Court of Appeal Judgment

Legal Issues

  1. 1 ['Whether Mr Patman exercised the function of the owners corporation in making relevant determinations at the August 2003 meetings.' 'Whether the appointment of Bright and Duggan was subject to limitations of the kind referred to in the draft agreement.' 'Whether certain functions of the owners corporation had to be exercised at a properly convened general meeting, notwithstanding the appointment of a strata managing agent under s 162 of the Strata Schemes Management Act 1996, notably the functions under s 76(4) and s 80D.']

Ratio Decidendi

The appeal was allowed because the strata managing agents appointed under s 162 exercised the owners corporation's functions in determining the relevant levies and initiating recovery action. Mr Patman understood that the functions of the owners corporation were vested in him and exercised them after consulting the lot owners. Bright and Duggan's appointment was not limited by the draft agreement. Because the functions were exercised by strata managing agents appointed to exercise all functions of the owners corporation, the general meeting requirements in ss 76(4) and 80D did not apply.

Court Disposition

Appeal allowed.

Orders

  • ['The judgment and orders of the District Court of New South Wales made on 3 July and 17 July 2008 in proceedings 3831 of 2006 are set aside.' 'Judgment be entered in favour of the appellant in the sum of $255,685.62, to take effect as at 3 June 2009.' 'Order that the respondent in addition pay interest on unpaid...