Farland v Simmons

In Farland v Simmons, the dispute involved the appointment of a strata managing agent for The Owners-Strata Scheme No 13849. The case was heard in the Supreme Court of New South Wales. The primary issue was whether Proactive Strata Services Pty Ltd should be appointed as the strata managing agent and, if so, under what terms and conditions. The application was made under the provisions of the Strata Schemes Management Act 2015.

The court considered the statutory framework for appointing a strata managing agent, including the factors outlined in section 237 of the Act. It was necessary to determine if Proactive Strata Services Pty Ltd was suitable for the role and if the terms of the Strata Management Agency Agreement were appropriate. The court also needed to decide whether the appointment should be made for a fixed period, such as twelve months, and if the existing managing agent, Kooper and Levi Strata Management Pty Ltd, should hand over relevant records and property to the new agent. The court had to balance the interests of the Owners Corporation and the lot owners while ensuring compliance with the Act.

The court found that Proactive Strata Services Pty Ltd was suitable for the role and that the terms of the proposed Strata Management Agency Agreement were appropriate. It determined that a fixed term of twelve months was reasonable to allow for a transition period and to provide an opportunity to review the performance of the new managing agent. The court ordered that Proactive Strata Services Pty Ltd be appointed as the strata managing agent for the Owners Corporation, with the authority to exercise all functions of the chairperson, treasurer, secretary, and strata committee. The existing managing agent and any lot owner were directed to hand over any relevant records and property within seven days. The court also granted leave for the parties to submit written submissions on the issue of costs, with an option for a hearing "on the papers."