Larsen v The Owners - Strata Plan No. 3573

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Civil and Administrative Tribunal


New South Wales

Medium Neutral Citation: Larsen v The Owners - Strata Plan No. 3573 [2022] NSWCATCD 43
Hearing dates: 18 November 2021 and 28 January 2022
Date of orders: 03 March 2022
Decision date: 03 March 2022
Jurisdiction:Consumer and Commercial Division
Before: G Kinsey, General Member
Decision:

1 The application for the appointment of a compulsory strata manager under section 237 of the Strata Schemes Management Act 2015 is dismissed.

Catchwords:

LAND LAW — Strata title — Appointment of compulsory strata manager — Whether grounds for compulsory appointment established

Legislation Cited:

Civil and Administrative Tribunal Act 2013 (NSW)

Strata Schemes Management Act 2015 (NSW)

Cases Cited:

Bischoff v Sahade [2015] NSWCATAP 135

Hoare and Ors v The Owners- Strata Plan No 73905 [2018] NSWCATCD 45

Maple v The Owners Strata Plan No 8950 [2021] NSWCATCD 108

Texts Cited:

Nil

Category:Principal judgment
Parties: Bengt Larsen (First Applicant)
Robert Ball (Second Applicant)
The Owners - Strata Plan No. 3573 (Respondent)
Representation: First and Second Applicant (Self-represented)
Y Lee (Respondent)
File Number(s): SC21/37065
Publication restriction: Unrestricted

REASONS FOR DECISION

The Parties

  1. The Applicants are the owners of lots 7 and 8 in Strata Plan 3573.

  2. The Respondent is the Owners Corporation of Strata Plan No 3573. The strata scheme is a mixed commercial and residential development situated at 237-245 Maroubra Road Maroubra. For the sake of convenience the Respondent shall hereinafter be referred to as “the OC”.

  3. The Applicants appeared in person at the hearing.

  4. The OC was represented by the secretary of the Owners Corporation Yuen Lee.

The Application

  1. In an application filed on 23 August 2021 the Applicants sought an order pursuant to section 237 of the Strata Schemes Management Act 2015 (hereinafter referred to as “the SSMA”) for the appointment of a compulsory strata manager and interim orders pursuant to section 231 of the SSMA

  2. Attached to the application is a summary of the reasons for seeking the appointment of a compulsory strata manager with supporting documents. Briefly the Applicants state the OC is not functioning satisfactorily because:

  1. The unreasonable control of the voting at all meetings by the owners of lots 12,13 and 14 since the expiration of the former compulsory manager’s term;

  2. The inadequacy of funds to properly maintain the common property;

  3. The calling of an extraordinary general meeting to remove the strata manager one month after appointment;

  4. The irrational behaviour of the secretary Yuen Lee;

  5. The invalidity of Ms Lee’s actions in calling for the EGM scheduled for 27 August 2021.

  1. The application provided background material and details of events which the Applicants assert support the case for the appointment of a compulsory strata manager.

  2. At the hearing the Applicants informed the Tribunal that they would not seek the appointment of a compulsory strata manger if the secretary Yuen Lee resigned or was removed as the secretary pursuant to section 227(4) of the SSMA.

Procedural History

  1. The Application was filed on 23 August 2021.

  2. On 1 September 2021 the Tribunal…

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Details
Case
[2022] NSWCATCD 43
Decision Date

CaseChat Overview and Summary

The case of Larsen v The Owners - Strata Plan No. 3573 involved a dispute among the owners of a strata property, where the applicant, Larsen, sought the compulsory appointment of a strata manager under section 237 of the Strata Schemes Management Act 2015. The application was brought before the Supreme Court of New South Wales. Larsen claimed that the existing body corporate was unable to properly manage the strata scheme, necessitating external intervention.

The legal issues before the court were whether the grounds for the compulsory appointment of a strata manager had been sufficiently established by Larsen. The court had to determine if there was evidence of mismanagement or breaches of the Act by the existing body corporate that warranted such intervention. The court considered whether the existing body corporate had failed to fulfil its statutory obligations, and if the proposed strata manager was suitable for the role.

In reaching its decision, the court carefully examined the evidence presented regarding the management of the strata scheme. It found that while there were issues with the management, they did not reach the threshold required for the compulsory appointment of a strata manager. The court concluded that the evidence did not demonstrate an inability or unwillingness of the existing body corporate to manage the scheme effectively, nor did it show that the proposed strata manager would resolve the identified issues. Consequently, the application was dismissed.

As a result of the court's decision, the order made was that the application for the appointment of a compulsory strata manager under section 237 of the Strata Schemes Management Act 2015 was dismissed. The existing body corporate retained its responsibility for managing the strata scheme.

Orders

Orders of the court

1 The application for the appointment of a compulsory strata manager under section 237 of the Strata Schemes Management Act 2015 is dismissed.

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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