2 Elizabeth Bay Road Pty Ltd v The Owners - Strata Plan No 73943

The dispute in *2 Elizabeth Bay Road Pty Ltd v The Owners - Strata Plan No 73943* concerned whether an owners corporation had validly commenced proceedings against a lot owner. The primary issue was the interpretation and application of section 80D of the *Strata Schemes Management Act 1996* (NSW), which requires an owners corporation to obtain approval from a general meeting before commencing certain legal proceedings. The case was heard in the Court of Appeal of New South Wales.

The Court of Appeal was required to determine whether section 80D of the *Strata Schemes Management Act 1996* (NSW) mandated obtaining approval for litigation *before* proceedings were commenced, and if so, what the consequence of commencing proceedings without such prior approval would be. Specifically, the court had to consider whether a contravention of section 80D rendered the proceedings invalid or a nullity, or whether it merely provided grounds for a stay or dismissal of the proceedings.

The Court of Appeal reasoned that section 80D should be construed in light of the Act as a whole, and that the ordinary meaning of the words used indicated a requirement for prior approval. However, the court held that a failure to obtain this approval did not render the proceedings a nullity. Instead, the court found that the appropriate remedy for a contravention of section 80D was a stay or dismissal of the proceedings, but that a subsequent ratification by a general meeting could cure the defect. The court applied principles of statutory construction, including reference to dictionary definitions, to arrive at its interpretation of the provision.

The appeal was dismissed, and the appellant was ordered to pay the costs of the appeal.