THE OWNERS OF CLAISEBROOK HEIGHTS STRATA PLAN 11880 and THOMPSON

The dispute between the Owners of Claisebrook Heights Strata Plan 11880 and Thompson revolved around the allocation and amendment of unit entitlements within a strata scheme. The matter was heard in the Supreme Court of Western Australia. The primary issue was whether the schedule of unit entitlements, which would have been allocated at the time of the application, would require amendment to reflect the proportionate value of each lot relative to the total value of all the lots in the strata titles scheme. The court was tasked with determining whether such a valuation approach was appropriate and whether it was contingent on the specific facts of the case.

The court considered the legal principles surrounding the allocation of unit entitlements in strata schemes, emphasising the importance of proportionality and fairness. It examined the relevant legislative framework and case law to assess the validity of the proposed valuation method. The court determined that the valuation of unit entitlements should indeed be proportionate to the value of each lot relative to the total value of all lots in the strata scheme. However, the court also highlighted that the specific facts of each case would play a crucial role in determining the appropriate allocation of unit entitlements. This approach ensures that the allocation reflects the true economic value of each lot and promotes equitable treatment among the owners.

Following its analysis, the court concluded that the schedule of unit entitlements should be amended to reflect the proportionate value of each lot. This decision was based on the principle that unit entitlements should be allocated in a manner that is fair and reflective of the economic reality of the strata scheme. The court's reasoning underscored the importance of considering the unique circumstances of each case to achieve a just outcome. The final orders of the court directed the amendment of the unit entitlements schedule to align with the court's findings, ensuring that the allocation of unit entitlements would be proportionate and equitable.