Franklin v The Owners—Strata Plan No. 87497

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Civil and Administrative Tribunal


New South Wales

  • Amendment notes
Medium Neutral Citation: Franklin v The Owners—Strata Plan No. 87497 [2022] NSWCATCD 210
Hearing dates: 23 November 2022
Date of orders: 20 December 2022
Decision date: 20 December 2022
Jurisdiction:Consumer and Commercial Division
Before: S Hanstein, General Member
Decision:

Pursuant to s 150(1) of the Strata Schemes Management Act 2015, paragraphs (1) and (2) of by-law 25 are declared to be invalid.

Catchwords:

LAND LAW — Strata title — By-laws — requirement that by-law not be harsh, unconscionable or oppressive — where by-law prohibits cooking — whether by-law harsh, unconscionable or oppressive

Legislation Cited:

Strata Schemes Management Act 2015

Cases Cited:

Cooper v The Owners-Strata Plan No 58068 [2020] NSWCA 250

Coscuez International Pty Ltd v The Owners-Strata Plan No 46433 [2022] NSWCATAP 147

Texts Cited:

Nil

Category:Principal judgment
Parties: Lewis Elliot Franklin (Applicant)
The Owners—Strata Plan No. 87497 (Respondent)
Representation: W Franklin (Applicant)
Lake Group Strata, Mr Graham (Respondent)
File Number(s): SC22/35101
Publication restriction: Nil

REASONS FOR DECISION

  1. The applicant is an owner of a lot in the strata scheme, and the respondent is the Owners Corporation.

  2. The strata scheme comprises 87 residential lots and 13 utility lots. The building was previously an aged care facility.

  3. A number of issues were resolved between the parties prior to the commencement of the formal hearing. Subsequently the parties also reached agreement in respect of use of a door to the building and the Tribunal notes, by consent, the Owners Corporation will provide to the applicant a swipe card to unlock the exit door on the second floor, to enable him to use that door to facilitate the use and enjoyment of his lot in his personal circumstances. The Tribunal notes also that there may not presently be a swipe card reader on the outside of the door and that the Owners Corporation may install one if the applicant were to pay for that to occur.

  4. The issue remaining for determination is whether the Tribunal should, pursuant to section 150 of the Strata Schemes Management Act 2015 (“Act”), declare paragraphs (a) and (b) of by-law 25 to be invalid.

  5. By-law 25 states:

25 Cooking within any lot

(1) Cooking of any nature including toasting bread will not be permitted in any lot unless the lot has cooking facilities installed by the original Owners of the strata.

(2) The use of a kettle will be permitted.

(3) Should any lot owner or occupant engage in cooking within the lot, which then causes a smoke alarm to be triggered resulting in the Fire Brigade attending at the building, then the lot owner will be responsible for reimbursement to the Owners Corporation for any charge levied against the Owners Corporation by New South Wales Fire Brigade.

Applicant’s case

  1. The applicant’s evidence and submissions included the following.

  2. The building was originally an aged care facility and has a commercial kitchen for shared use by the building’s occupants. The building is now a residential building…

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Details
Case
[2022] NSWCATCD 210
Decision Date

CaseChat Overview and Summary

In the case of Franklin v The Owners—Strata Plan No. 87497, the dispute arose between the appellant, Mr. Franklin, and the respondents, the owners of a strata plan. The central issue was whether certain by-laws within the strata scheme were valid and enforceable. Specifically, the appellant challenged the enforceability of by-laws prohibiting the cooking of food in the kitchen area. The matter was heard by the Supreme Court of New South Wales.

The court was required to determine whether the by-laws in question were harsh, unconscionable or oppressive, as per the requirements of the Strata Schemes Management Act 2015. The court needed to assess whether these by-laws, which effectively prohibited cooking in the kitchen, met the criteria for being deemed invalid. The appellant argued that the by-laws were not only impractical but also oppressive, as they significantly restricted the use of kitchen facilities.

The court found that the by-laws were indeed harsh, unconscionable and oppressive. The prohibition on cooking in the kitchen was deemed unreasonable and not in line with the intended use of the premises. The court highlighted that the by-laws went beyond reasonable restrictions on the use of strata lots and amounted to an unjustifiable limitation on the rights of the owners. Consequently, the court declared the relevant paragraphs of the by-law invalid under section 150(1) of the Strata Schemes Management Act 2015.

The court ordered that paragraphs (1) and (2) of by-law 25 be declared invalid. This decision allows the owners to resume cooking in their kitchens, subject to any other reasonable by-laws that may apply within the strata scheme.

Orders

Orders of the court

Pursuant to s 150(1) of the Strata Schemes Management Act 2015, paragraphs (1) and (2) of by-law 25 are declared to be invalid.

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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