Body Corporate for Calypso Plaza on Coolangatta CTS 24595 v Larraine Pty Ltd

The Body Corporate for Calypso Plaza on Coolangatta (applicant) sought judicial review of a decision by an adjudicator (respondent) regarding the responsibility for paying the operational costs of exhaust fans and associated ducting for certain lots within the Scheme. The applicant argued that the adjudicator’s decision was incorrect and that the costs should be borne by the unit owners, not the body corporate. The Queensland Civil and Administrative Tribunal (QCAT) was tasked with determining the validity of the adjudicator's decision and the proper allocation of the operational costs.

The primary legal issues before the Tribunal were whether the adjudicator had the power to order reimbursement of amounts incorrectly charged by the body corporate to unit holders, and whether the body corporate’s decision to charge unit holders for the operational costs of the exhaust fans and ducting was validly ratified. The Tribunal also needed to ascertain whether the costs of operation, including electricity, for the exhaust fans and ducting were the responsibility of the body corporate or the unit owners.

The Tribunal examined the statutory framework provided by the Body Corporate and Community Management Act 1997 and the Body Corporate and Community Management (Accommodation Module) Regulation 2008. It found that the adjudicator had no power to order reimbursement of amounts charged by the body corporate to unit holders as this power was not conferred by the Act or the Regulation. Furthermore, the Tribunal determined that the body corporate’s decision to charge unit holders for the operational costs was not validly ratified as it did not comply with the procedural requirements of the Act. Consequently, the Tribunal concluded that the costs of operation, including electricity, for the exhaust fans and ducting were the responsibility of the body corporate.

The Tribunal set aside the adjudicator's decision and declared that the costs of operation, including electricity, and maintenance of the exhaust fans and associated ducting for lots 9 to 15 in the Scheme were the responsibility of the body corporate. The Tribunal ordered the body corporate to cease charging the owners or occupiers of those lots for any electricity used to power the exhaust fans and exhaust ducting system. It also ordered the body corporate to reimburse the respective owners or occupiers of lots 9 to 15 for any operational costs they had paid in respect of the exhaust fans and ducting system servicing those lots.