The Owners Strata Plan 56443 v Regis Towers Real Estate Pty. Limited

The Owners Strata Plan 56443 (the Owners) appealed to the New South Wales Court of Appeal against a decision concerning an agreement for caretaker services provided by Regis Towers Real Estate Pty. Limited (Regis Towers) to a large strata complex. The dispute centred on whether this agreement constituted an unlawful delegation of the functions of the owners corporation under the *Strata Schemes Management Act 1996* (NSW).

The primary legal issue before the Court of Appeal was whether the caretaker agreement, which granted Regis Towers extensive responsibilities for the management and maintenance of the strata complex, amounted to a delegation of the statutory functions of the owners corporation. This involved determining the scope of the owners corporation's powers and the extent to which it could lawfully contract out its duties.

The Court of Appeal, comprising Handley, Hodgson and McColl JJA, reasoned that the agreement did not effect an unlawful delegation of the owners corporation's statutory functions. The Court distinguished between delegating statutory powers and contracting for services to assist in carrying out those powers. It held that the owners corporation retained its ultimate responsibility and control, and the agreement with Regis Towers was a valid exercise of its power to engage a caretaker to perform services, rather than an abdication of its core functions.

Consequently, the appeal was dismissed, with the Owners ordered to pay Regis Towers' costs of the application for leave and the appeal. No order was made as to the costs of Meriton Apartments Pty. Limited.