Fong v The Owners - Strata Plan No. 82783

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Civil and Administrative Tribunal


New South Wales

Medium Neutral Citation: Fong v The Owners – Strata Plan No. 82783 [2022] NSWCATCD 56
Hearing dates: 17 March 2022
Date of orders: 27 April 2022
Decision date: 27 April 2022
Jurisdiction:Consumer and Commercial Division
Before: M Tyson, Senior Member
Decision:

1. Order pursuant to section 149 of the Strata Schemes Management Act 2015 (NSW) that the by-law, described as special by-law 29 and described at item 14 in the minutes of the annual general meeting of the Owners Corporation SP 82783 on 20 January 2022 is prescribed as a change to the by-laws of the said strata scheme, with the wording that appears in Annexure A to those minutes, as copied as pages 55 to 62 of the applicant’s written evidence in the proceedings, and with special by-law 29 to operate on and from 20 January 2022.

2. Order the Owners Corporation SP 82783 promptly to do all acts necessary to record the by-law described in order 1 pursuant to section 246 of the Strata Schemes Management Act 2015 (NSW).

Catchwords:

STRATA SCHEMES – s. 149 Strata Schemes Management Act – Unreasonably refused to make a common property rights by-law

Legislation Cited:

Strata Schemes Management Act 2015 (NSW)

Cases Cited:

Capcelea v The Owners – Strata Plan No 48887 [2019] NSWCATCD 27

Endre v The Owners - Strata Plan no. 17771 [2019] NSWCATAP 93

Gazebo Penthouse PL v Owners SP 73943 [2015] NSWCATCD 93

McCann v Owners SP 11318 [1998] NSWSSB 44

Milijash v Owners SP 3618 [2002] NSWCTTT 297

Milman v Owners SP 1389 [2005] NSWCTTT 196

Owners SP 69481 v Want [2013] NSWCTTT 440

Owners SP 69140 v Drewe [2017] NSWSC 845

Owners Corporation SP 7596 v Risidore & Ors [2003] NSWSC 966

Owners SP 69140 v Drewe [2017] NSWSC 845

The Proprietors SP 1627 v Schultz (1978) Strata Title Law and Practice [3-024]

Texts Cited:

Nil

Category:Principal judgment
Parties: Alicia Fong (Applicant)
The Owners – Strata Plan No. 82783 (Respondent)
Representation: J Kanridis (Applicant)
Y Ge (Respondent)
File Number(s): SC 21/45610
Publication restriction: Nil

REASONS FOR DECISION

  1. The applicant is the owner of a lot, unit A101, in the strata scheme the subject of strata plan 82783 (“the Strata Plan”), which is located at XX Queens Road, Hurstville, New South Wales. The respondent is the Owners Corporation of SP82783, for the purposes of the Strata Schemes Management Act 2015 (NSW) (“the Act”). By application filed 4 November 2021 in the NSW Civil and Administrative Tribunal (“the Tribunal”), the applicant initially sought an order under s. 126 of the Act. The applicant later amended her claim and now seeks orders under either s. 126 or s. 149 of the Act. The Tribunal heard the matter by means of an audio-visual linked hearing on 17 March 2022. The applicant was represented by James Kanridis, who lives in unit A101 and is the domestic partner of the applicant. He was supported by his father Terry Kanridis. The respondent was represented…

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Details
Case
[2022] NSWCATCD 56
Decision Date

CaseChat Overview and Summary

In the matter of Fong v The Owners - Strata Plan No. 82783, the Local Court of New South Wales considered a dispute regarding the refusal of the Owners Corporation to amend the by-laws of a strata scheme. The applicant, Fong, sought to have a special by-law prescribed, which had been unreasonably refused by the Owners Corporation during an annual general meeting. The central issue before the court was whether the Owners Corporation had unreasonably refused to make a common property rights by-law as required by section 149 of the Strata Schemes Management Act 2015 (NSW).

The court needed to determine whether the refusal to enact the proposed by-law was unreasonable under the Act. The applicant argued that the Owners Corporation had acted unreasonably by not passing the by-law, which was aimed at addressing the management and use of common property. The Owners Corporation contended that the refusal was reasonable given the potential impact on existing property rights and the lack of consensus among the owners. The court examined the statutory criteria for determining unreasonableness and the evidence presented regarding the Owners Corporation's decision-making process.

The court found that the Owners Corporation had indeed unreasonably refused to make the common property rights by-law. The evidence demonstrated that the refusal was not based on a proper consideration of the statutory criteria, and there was a lack of transparency and fairness in the decision-making process. The court concluded that the by-law should be prescribed as a change to the strata scheme's by-laws, and ordered the Owners Corporation to record the by-law accordingly. The court also mandated that the Owners Corporation take all necessary actions to implement the prescribed by-law.

Orders

Orders of the court

1. Order pursuant to section 149 of the Strata Schemes Management Act 2015 (NSW) that the by-law, described as special by-law 29 and described at item 14 in the minutes of the annual general meeting of the Owners Corporation SP 82783 on 20 January 2022 is prescribed as a change to the by-laws of the said strata scheme, with the wording that appears in Annexure A to those minutes, as copied as pages 55 to 62 of the applicant’s written evidence in the proceedings, and with special by-law 29 to operate on and from 20 January 2022.

2. Order the Owners Corporation SP 82783 promptly to do all acts necessary to record the by-law described in order 1 pursuant to section 246 of the Strata Schemes Management Act 2015 (NSW).

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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