New Zealand Case Law: Decisions & Judgments | LexChat

New Zealand Case Law

Body corporate resolutions

  • 8 Dec 2021

    WONG SUN EEN & ORS v BODY CORPORATE 384911 [2021] NZCA 665

    Citation
    [2021] NZCA 665
    Court
    Court of Appeal

    The Court allowed the appeal and set aside the ordinary resolution because, applying s 210, the incidence of a $29,000 per month 24/7 security contract levied across all unit owners was unjust and inequitable for the minority: the security was directed at supporting a hotel operation from which the minority did not participate, the cost was disproportionate (approximately $348,000 pa versus conventional security of about $25,000 pa), and the minority thereby subsidised hotel operational costs to an extent that met the high threshold of material unfairness required by s 210.

  • 1 Apr 2021

    EEN v BODY CORPORATE 384911 [2021] NZHC 729

    Citation
    [2021] NZHC 729
    Court
    High Court

    The minority failed to meet the high threshold under s 210 because they receive a benefit from the security covering their units and common areas, they had rejected a prior offer by the hotel to provide security at no cost, the Body Corporate reasonably adopted an alternative to protect against liability and insurance risk, the security contract was tendered at market rates, and the apportioned cost per unit (approximately $151.80/month) was modest; therefore the effect of the resolution was not unjust or inequitable.