Sydney Gold Bullion Exchange Pty Ltd v The Owners - Strata Plan No 34794

Sydney Gold Bullion Exchange Pty Ltd initiated proceedings against The Owners - Strata Plan No 34794 in the Civil and Administrative Tribunal of New South Wales. The dispute centred on the interpretation and application of provisions in the Strata Schemes Management Act 2015 (NSW) concerning the allocation of unit entitlements and the liability of an owners corporation for breaches of statutory duty and negligence. The applicant contested the decision of the respondent, the owners corporation, regarding the allocation of unit entitlements among the lots in the strata scheme, and the alleged failure to adhere to statutory obligations and exercise due care in managing the strata scheme.

The central legal issues involved the interpretation of section 236 of the Strata Schemes Management Act 2015 (NSW) regarding the necessity of a certificate of valuation for the allocation of unit entitlements, specifically whether such a certificate must value all lots or only those whose unit entitlement is to be altered. Another issue was whether a lot is considered a “lot to which the application relates” if its unit entitlement does not change, but the aggregate unit entitlement of all lots is reduced. Additionally, the court had to determine the circumstances under which an owners corporation could be held liable for breach of statutory duty or negligence and the extent of the statutory duty and duty of care owed by the owners corporation to the lot owners.

The Tribunal found that the applicant's claims were without merit. Regarding the valuation certificate, the Tribunal held that it was only necessary to value the lots whose unit entitlements were proposed to be changed. The Tribunal also determined that a lot is not considered to be a “lot to which the application relates” if its unit entitlement does not change, even if the overall unit entitlement is reduced. As for the liability of the owners corporation, the Tribunal concluded that the corporation was not liable for the applicant's claims of breach of statutory duty or negligence, given the circumstances of the case. The Tribunal further held that the applicant's proceedings were commenced outside the statutory time limit, rendering the claims statute-barred.

The Tribunal dismissed the application and ordered the applicant to pay the respondent's costs of the application. However, if the respondent wished to seek a different order in respect of the costs, they could file submissions within 14 days of the publication of the orders, with the applicant then having the opportunity to respond. The Tribunal reserved the right to determine any further issues of costs based on the written submissions, without the need for a hearing.