Waldorf Apartment Hotel, the Entrance Pty Ltd v Owners Corp Sp 71623

The Waldorf Apartment Hotel, The Entrance Pty Ltd (the appellant) appealed to the New South Wales Court of Appeal against a decision of the primary judge concerning an agreement for the management of common property within a strata scheme. The respondent was the Owners Corporation SP 71623. The dispute centred on the validity of the management agreement and whether the appellant's conduct constituted a repudiation of that agreement.

The Court of Appeal was required to determine whether the management agreement was validly entered into by the Owners Corporation. This involved considering whether the agreement was authorised by a general meeting of the Owners Corporation, its executive committee, or by the affixation of its seal, or if it was entered into by conduct. Furthermore, the Court had to assess whether the appellant's use of electricity, which was chargeable to the Owners Corporation, amounted to a breach of the agreement justifying its termination. The Court also considered whether an injunction sought by the Owners Corporation would effectively compel specific performance of the management agreement and, if so, whether such an order was appropriate.

The Court of Appeal upheld the primary judge's findings. It concluded that the management agreement was not validly entered into by the Owners Corporation through any of the formal mechanisms considered. However, the Court found that the agreement had been entered into by conduct, establishing a binding contract. The Court also determined that the appellant's conduct in using electricity chargeable to the Owners Corporation constituted a repudiation of the agreement, justifying its termination by the Owners Corporation. The Court found that the injunction sought was not an indirect way of compelling specific performance but rather a legitimate means of restraining the appellant from continuing to breach the agreement.

The appeal was dismissed, and the appellant was ordered to pay the costs of the appeal.