Maludra Pty Ltd & Ors and Owners of Windsor Towers & Ors

In the case before the court, Maludra Pty Ltd and others, as owners of units, sought variation of their unit entitlements in relation to a strata scheme governed by the Strata Titles Act 1985 (WA). The dispute arose as the applicants sought to challenge the accuracy of their unit entitlements based on what they claimed to be an undervaluation of their properties. The respondents, who were the owners of the broader strata scheme, defended the assessment of the unit entitlements. The court had to determine whether section 103H of the Strata Titles Act 1985 (WA) applied to strata schemes established under the Strata Titles Act 1966 (WA), as well as the interpretation of "capital value" in the context of the legislation.

The primary legal issues revolved around the applicability of section 103H to strata schemes established prior to the 1985 Act, the distinction between "capital value" and "market value," and whether "capital value" included improvements to a strata lot, specifically those fixed to common property such as walls, ceilings, or floors. The applicants argued that their unit entitlements were undervalued because the capital value did not account for improvements that were fixed to common property. The respondents contended that the 1985 Act did not apply retrospectively and that the improvements were not part of the strata lots.

The court held that section 103H of the 1985 Act did not apply to strata schemes created under the 1966 Act, as the 1985 Act was intended to operate prospectively. Regarding the interpretation of "capital value," the court found that it did not necessarily equate to market value but rather referred to the value of the strata lot as it existed before any improvements were made. Additionally, the court ruled that improvements fixed to common property were not part of the strata lots and, therefore, should not be included in the calculation of capital value. Consequently, the applicants' claims for variation of their unit entitlements were dismissed.

The final orders of the court confirmed the dismissal of the applicants' claims, upheld the existing unit entitlements, and determined that the 1985 Act did not apply retrospectively to the strata scheme in question. The applicants were also ordered to pay the respondents' costs.