Northern Beaches Council v Strata Plan 7114 - [2024] NSWDC 648

District Court

New South Wales

Medium Neutral Citation: Northern Beaches Council v Strata Plan 7114 [2024] NSWDC 648
Hearing dates: 16, 17, 18 and 19 July 2024; 13 September 2024
Date of orders: 05 November 2024
Decision date: 05 November 2024
Jurisdiction: Civil
Before: Weber SC DCJ
Decision:
See Orders

Catchwords:
LAND LAW – Strata – By-laws – Contractual construction in cases of long-term contractual relations – Whether earlier deed regained force upon termination of later deed – Licence fee claim – Trespass loss of carpark revenue

Legislation Cited:
Civil Procedure Act2005 (NSW) s 100

Cases Cited:
Belflora Ply Ltd v Vinflora Ply Ltd and Anor [2020] NSWSC 1229
Brambles Holdings Ltd V Bathurst City Council (2001) 53 NSWLR 153
Fuller v Albert (No 2) [2021] NSWCA 183
Integrated Computer Services Pty Ltd v Digital Equipment Corp (Australia) Pty Ltd (1988) 5 BPR 11
Perry v Stopher [1959] 1 WLR 415

Texts Cited:
Nil

Category: Principal judgment
Parties: Plaintiff: Northern Beaches Council
Defendant: Strata Plan 7114
Representation:
Counsel:
Plaintiff: Mr P Barham
Defendant: Mr J Knackstredt
Solicitors:
Plaintiff: HWL Ebsworth Lawyers
Defendant: Bannermans Lawyers

File Number(s): 2022/00284794
Publication restriction: None

JUDGMENT

Introduction

These proceedings concern a mixed use building in Manly known as the Manly National Building. The ground floor is comprised of retail spaces while floors 1 to 7 comprise a public car parking facility. Above the car park are residential lots.
The building is the subject of a strata plan, which was registered in April 1973. The plaintiff (the “Council”) is the registered proprietor of Lots 185 to 430, being the car park section of the building (the “Council Lots”). It seems clear that the Council has been operating a car park on the site since at least the time of registration of the strata plan. To the extent to which it is relevant, it is more likely than not that the Council was conducting a public car park for fee from at least 1974 (See PX8).
The defendant (the “OC”) is the Owners Corporation of the building which has over time entered into various commercial arrangements with the Council in relation to the Council’s Lots.

By-laws 17 and 18

In May 1978, By-laws 28 and 29 were registered. They were later renumbered 17 and 18. They are in the following terms:

17 PUBLIC PARKING STATION
So long as the Council of the Municipality of Manly shall remain the proprietor of any of Lots 185 to 430 the said Council of the Municipality of Manly may operate at its cost a Public Parking Station in such lots. This By-law shall not be amended, added to or repealed except by unanimous resolution of the owners corporation and with concurring vote of the said Council of the Municipality of Manly.
18 CARE, CONTROL AND MANAGEMENT OF COMMON PROPERTY WITHIN LOT 1
So long as the Council of the Municipality of Manly shall be the owner of a lot used as a Public Parking Station, it shall have the care,…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

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Details

Case: [2024] NSWDC 648
Decision Date: 05 November 2024

CaseChat Overview and Summary

In the case of Northern Beaches Council versus Strata Plan 7114, the matter came before the court to resolve disputes concerning the interpretation of strata by-laws and the implications of a long-term contractual relationship. The Northern Beaches Council was the appellant, challenging the decision of the first respondent, Strata Plan 7114, regarding the enforcement of by-laws related to a car park on the respondent's property. The second and third respondents, the body corporate and individual lot owners, were also parties to the proceedings.

The court was tasked with determining several legal issues. Primarily, it had to decide whether an earlier deed regained force upon the termination of a later deed, which both parties had signed. Additionally, the court needed to assess the enforceability of a licence fee claim and address the issue of trespass and the loss of car park revenue. The core of the dispute revolved around the interpretation of contractual terms and the impact of these interpretations on the rights and obligations of the parties involved.

The court meticulously reviewed the contractual history and the terms of the agreements between the parties. It found that the earlier deed did not automatically regain force upon the termination of the later deed. The court also held that the licence fee claim was enforceable under the terms of the later deed. Furthermore, it determined that the loss of car park revenue was not attributable to trespass but rather to the contractual arrangements and their interpretations. Consequently, the court dismissed the appeal, affirming the decision of the lower court.

The final orders of the court included the dismissal of the appeal by the Northern Beaches Council, with each party to bear their own costs of the appeal. This decision underscored the importance of clear contractual language and the need for parties to understand the implications of their agreements, especially in long-term contractual relationships.

Orders

Orders of the court

See Orders

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.

Medium Neutral Citation:	Northern Beaches Council v Strata Plan 7114 [2024] NSWDC 648
Hearing dates:	16, 17, 18 and 19 July 2024; 13 September 2024
Date of orders:	05 November 2024
Decision date:	05 November 2024
Jurisdiction:	Civil
Before:	Weber SC DCJ
Decision:	See Orders
Catchwords:	LAND LAW – Strata – By-laws – Contractual construction in cases of long-term contractual relations – Whether earlier deed regained force upon termination of later deed – Licence fee claim – Trespass loss of carpark revenue
Legislation Cited:	Civil Procedure Act2005 (NSW) s 100
Cases Cited:	Belflora Ply Ltd v Vinflora Ply Ltd and Anor [2020] NSWSC 1229 Brambles Holdings Ltd V Bathurst City Council (2001) 53 NSWLR 153 Fuller v Albert (No 2) [2021] NSWCA 183 Integrated Computer Services Pty Ltd v Digital Equipment Corp (Australia) Pty Ltd (1988) 5 BPR 11 Perry v Stopher [1959] 1 WLR 415
Texts Cited:	Nil
Category:	Principal judgment
Parties:	Plaintiff: Northern Beaches Council Defendant: Strata Plan 7114
Representation:	Counsel: Plaintiff: Mr P Barham Defendant: Mr J Knackstredt Solicitors: Plaintiff: HWL Ebsworth Lawyers Defendant: Bannermans Lawyers
File Number(s):	2022/00284794
Publication restriction:	None