NSW Civil and Administrative Tribunal
New South Wales
Medium Neutral Citation: David and Edith Younger v The Owners- Strata Plan No 57504 [2014] NSWCATCD 142 Decision date: 18 August 2014 Before: J A Ringrose, General Member Decision: 1. The application to re-allocate unit entitlements is dismissed pursuant to s 185(3) of the Act.
2. Each party is to bear their own costs of the application
Catchwords: Re-allocation of unit entitlement Legislation Cited: Strata Schemes Management Act 1996 s 183 Cases Cited: Makita (Australia) Pty Limited v Sprowles (2001) NSWCA 305
Riana Pty Limited v the Owners - Strata Plan Number 22336 (2007) NSWSC 3Category: Principal judgment Parties: David and Edith Younger (applicants) Representation: J S Meuller & Co for the applicant
Doyle Edwards Anderson, Lawyers for the respondent
File Number(s): SCS 13/16366 Publication restriction: Nil
REASONS FOR DECISION
BACKGROUND
The applicants are the owners of lot 113 in Strata Plan 57504 in respect of premises located at 199 Regent Street, Redfern 2016. The original Strata Plan Number 57504 was registered on 15 July 1998. On 13 November 2001 a plan of sub-division number SP66863 was registered and the effect of that plan was to add lot 114 to the strata complex. Lot 114 initially comprised a common property plant room. At the time of registration of Strata Plan 66863 the surveyor preparing the plan decided to re-use the unit entitlement allocations of lots1- 113 from Strata Plan 57504 and to then add a unit entitlement for the additional lot 114. The complex comprises 112 residential units and two commercial units, namely lots 112 and 113. It would appear that the applicants acquired lot 113 in about August 2000.
APPLICATION
By an application dated 17 February 2013 Mr David Younger, as a co-owner of lot 113 in Strata Plan 57504 sought an order re-allocating unit entitlements on the basis of a valuer's report which was then attached to his application. He noted that a recent report commissioned by him and his wife indicated that the current allocation of 646 units was overestimated and that it should be less than 251 units. He stated that they had paid an excess for over 10 years and the financial burden was now too great and they were seeking leave to have the unit entitlement adjusted to the correct value.
When the matter was listed before the Tribunal on 6 November 2013 the proceedings were adjourned by consent as it was noted that the AGM was due to take place on 12 November 2013. Interested parties opposing the orders sought were invited to write to the Tribunal by 26 November 2013 expressing reasons for their opposition.
The respondent Owners Corporation was required to file any valuation report upon which it wished to rely by 17 December 2013. The time was subsequently extended to 7 February 2014.
When the matter was listed before the Tribunal on 26 February 2014 leave was given to the parties to be legally represented and it was noted that the…
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- AGLC
- David and Edith Younger v The Owners- Strata Plan No 57504 [2014] NSWCATCD 142
- Case
- [2014] NSWCATCD 142
- Decision Date
CaseChat Overview and Summary
The central legal issue before the court was whether the application for re-allocation of unit entitlements was permissible under the provisions of the Strata Schemes Management Act 1996 (NSW). Specifically, the court needed to determine if the application complied with section 185 of the Act, which sets out the requirements and restrictions on the re-allocation of unit entitlements. The Owners- Strata Plan argued that the application did not comply with the statutory requirements, as the Youngers had not obtained the necessary approval from the majority of the owners in the strata scheme.
In its decision, the court considered the statutory provisions and found that the application for re-allocation did not comply with the requirements of section 185(3) of the Act. The court held that the Youngers had not obtained the necessary approval from the majority of the owners, as required by the legislation. Consequently, the application to re-allocate the unit entitlements was dismissed. The court further determined that each party was to bear their own costs of the application.
The court's decision in this case highlights the importance of strict compliance with statutory requirements when seeking to re-allocate unit entitlements in a strata scheme. The failure to obtain the necessary approval from the majority of owners, as stipulated by the Act, resulted in the dismissal of the application.
Orders
Orders of the court
1. The application to re-allocate unit entitlements is dismissed pursuant to s 185(3) of the Act.
2. Each party is to bear their own costs of the application
Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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