The Owners - Strata Plan No 70798 v Bakkante Constructions Pty Ltd

The Owners - Strata Plan No 70798 (the owners corporation) commenced proceedings against Bakkante Constructions Pty Ltd. The dispute concerned the validity of these proceedings, which had not been approved by a general meeting as required by the *Strata Schemes Management Act 1996* (NSW). The matter came before the Court of Appeal of New South Wales.

The primary legal issues before the Court of Appeal were whether the owners corporation's failure to obtain approval for the proceedings from a general meeting prior to their commencement, and the subsequent failure to obtain ratification before the hearing, necessitated the dismissal of the proceedings. The Court also considered whether a motion to have regard to ratification after judgment should have been entertained.

The Court of Appeal, comprising Basten, Barrett and Leeming JJA, considered the effect of non-compliance with section 80D of the *Strata Schemes Management Act 1996*. While acknowledging that contravention of section 80D(1) does not automatically mandate dismissal, the Court found that, on the specific facts of this case, the proceedings should be dismissed. The Court also set aside the trial judge's answer to a separate question regarding dismissal and substituted its own answer.

The Court of Appeal ordered that the owners corporation pay 80% of the costs of the respondents in the Court of Appeal and also ordered that the owners corporation pay 80% of the costs of the respondents in the primary proceedings, excluding the costs of a specific hearing. The amended notice of appeal was otherwise dismissed.