Tan v The Owners Strata Plan No 22014

The dispute between Tan and The Owners Strata Plan No 22014 involved the latter's obligation to indemnify the former in proceedings against the defendants and to pay the defendants' costs. The matter was heard in the Supreme Court of New South Wales. The plaintiff sought to set aside consent orders that required the owners corporation to indemnify the plaintiff and pay the defendants' costs in proceedings. The owners corporation had appointed a strata managing agent who, according to the Strata Schemes Management Act 1996 (NSW), section 162, had all the powers of the executive committee of the owners corporation. However, the executive committee's resolutions appointing a legal representative and instructing that person to sign the consent orders on behalf of the owners corporation were invalid because only the strata managing agent had the authority to exercise the functions of the executive committee. The court applied the rule in Harvey v Phillips and considered whether the orders should be set aside under UCPR, rule 36.16(2)(b). Additionally, the court considered whether the appearance of the owners corporation was ineffective at the hearing during which the consent orders were made, as the legal representatives for the owners corporation had no valid retainer.

The court examined the authority of the strata managing agent and whether the executive committee's resolutions were valid. It was determined that the strata managing agent had the necessary authority to exercise the functions of the executive committee and that the resolutions appointing the legal representative and instructing them to sign the consent orders were invalid. The court also considered the appearance of the owners corporation at the hearing during which the consent orders were made. It was found that the appearance was ineffective because the legal representatives for the owners corporation had no valid retainer. Based on these findings, the court concluded that the consent orders should be set aside.

The court set aside the consent orders that required the owners corporation to indemnify the plaintiff and pay the defendants' costs in the proceedings. The court held that the strata managing agent had the necessary authority to exercise the functions of the executive committee, and the resolutions appointing the legal representative and instructing them to sign the consent orders were invalid. Additionally, the court found that the appearance of the owners corporation at the hearing during which the consent orders were made was ineffective because the legal representatives for the owners corporation had no valid retainer. The court's decision was based on the application of the rule in Harvey v Phillips and UCPR, rule 36.16(2)(b).