Kuzmanovic v The Owners Strata Plan No. 43576 & Peacock

Kuzmanovic brought proceedings against the Owners Strata Plan No. 43576 and Peacock, seeking orders for the appointment of a compulsory strata managing agent and damages for breach of statutory duty to maintain common property. The dispute arose from the failure of the owners corporation to maintain the common property of the strata scheme, leading to significant issues for the residents. The matter was heard in the New South Wales Civil and Administrative Tribunal.

The primary legal issues before the court were whether the conditions existed to justify the appointment of a compulsory strata managing agent under the Strata Schemes Management Act 2015 (NSW) and whether damages were appropriate for the alleged breach of statutory duty. The court had to determine whether the owners corporation had failed to fulfil its obligations to maintain the common property and whether such failure warranted the court’s intervention to appoint a managing agent.

The court found that the owners corporation had indeed failed to maintain the common property, leading to significant issues such as unaddressed repairs and safety hazards. The court held that the conditions under s 237 of the Strata Schemes Management Act 2015 (NSW) were met, justifying the appointment of a compulsory strata managing agent. The court appointed Premium Strata Pty Ltd for a period of 12 months, granting it all necessary functions of the owners corporation. The interim appointment of Strata Central Pty Ltd was terminated. The court declined to award damages, finding that the issue of maintenance was adequately addressed by the appointment of the new managing agent.

The orders of the court included the appointment of Premium Strata Pty Ltd as the strata managing agent for 12 months, the cessation of the interim appointment of Strata Central Pty Ltd, and the dismissal of the applications for damages. The remuneration of Premium Strata Pty Ltd was to be in accordance with the strata management agency agreement in the form attached to its letter dated 23 December 2021.