Lei v The Owners – Units Plan No 592 & Anor (Unit Titles)

The case of Lei v The Owners – Units Plan No 592 & Anor involved Rocky Lei, the owner of unit 7 in Units Plan 592, bringing proceedings against The Owners – Units Plan No 592, the owners corporation for the unit title scheme, and Dargads Pty Ltd, the owner of unit 3. Mr Lei sought to have the new water and electricity pipes installed by Dargads removed from the common property, claiming that they were not minor and unreasonably interfered with his use and enjoyment of the common property. Dargads argued that the installation of the pipes was approved by the Owners Corporation. The dispute came before the Civil and Administrative Tribunal of New South Wales.

The primary legal issue the court had to address was whether the installation of the pipes had been validly approved by the Owners Corporation under the Unit Titles (Management) Act 2011. If the approval was valid, the court had to determine whether the pipes constituted a minor alteration and whether they unreasonably interfered with Mr Lei’s reasonable use and enjoyment of the common property. The court also had to consider the appropriate remedy if the pipes were found to be unlawfully installed or unreasonably interfering with Mr Lei’s use of the common property.

The tribunal found that there was no evidence of any formal approval of the pipes by the Owners Corporation. It was clear that Mr Lei had been informed that the work could proceed, but this did not amount to valid approval. The tribunal concluded that the installation of the pipes was not minor and did unreasonably interfere with Mr Lei’s use and enjoyment of the common property. Consequently, the tribunal ordered that the Owners Corporation and Dargads must investigate alternative routes for the pipes that do not pass in front of the windows of units 7 and 8. If an alternative route is found and approved, the costs of implementing the alternative must be shared equally between the Owners Corporation and Dargads. If no alternative is found or approved, the tribunal ordered that the Owners Corporation and Dargads must use their best endeavours to have the current arrangement approved under the Act by a specified date.

The tribunal's orders were aimed at ensuring that the pipes were not unreasonably interfering with Mr Lei’s use and enjoyment of the common property, while also providing a fair solution for all parties involved. The tribunal did not order the immediate removal of the pipes, instead giving the parties time to find and approve an alternative route, or to have the current arrangement approved if no alternative is found.