The Owners - Strata Plan No. 2187 v Astoria Asset Management Ltd

The Owners of Strata Plan No. 2187 brought proceedings against Astoria Asset Management Ltd, the manager of the strata scheme, alleging breaches of duty and seeking damages and an account of receipts and expenditures. The dispute centred on whether the owners of the strata plan had the authority to initiate the legal action and, if not, whether there was a subsequent ratification by the owners that could validate the proceedings. The matter was heard in the Supreme Court of Queensland.

The court had to determine whether the owners of the strata plan possessed the authority to commence the litigation against the manager. A related issue was whether the purported ratification by the owners, which was intended to validate the initiation of the proceedings, was effective and sufficient to cure any initial defect in authority. The court's analysis required an examination of the statutory framework governing strata titles, particularly the provisions concerning the powers and duties of body corporates and their managers, as well as the procedural requirements for ratifying actions taken without proper authority.

The court found that the owners of the strata plan did not initially have the authority to initiate the legal action against the manager. However, the court determined that the subsequent ratification by the owners was effective and valid. The ratification cured any defect in authority, thereby validating the initiation of the proceedings. Consequently, the court held that the defendant's motion to dismiss the action for lack of authority must succeed on the specified ground. The court directed that the parties would be heard on the form of orders to be made and on the issue of costs.

The court's final orders were that the defendant would succeed on ground (1) of its Amended Notice of Motion filed on 16 June 2011. The parties were to be heard on the form of orders to be made and on the issue of costs.