Is it Possible to Ban E-bikes and E-scooters?

There have been a recent spate of fires in Sydney apartment buildings caused by the charging of e-bikes and e-scooters.  Those fires have resulted in a number of strata buildings introducing by-laws to ban or regulate e-bikes and e-scooters.  But is it possible to ban e-bikes and e-scooters?

An owners corporation has a broad power to make by-laws to manage, control and administer the use of the lots and common property in its building.  This enables an owners corporation to make a by-law that stipulates what residents can and cannot do within their lots.

However, there are some restrictions on the by-law making power of an owners corporation.  In particular, a by-law cannot be harsh, unconscionable or oppressive.  Any by-law that is, is unenforceable.

In 2020, the NSW Court of Appeal handed down a ruling providing guidance on the circumstances in which a by-law will be harsh, unconscionable or oppressive.  In that case, the Court said that if a by-law prohibits an activity that is capable of being carried out in a manner that does not have a detrimental impact on the use and enjoyment of the lots and common property by residents, then the by-law will be harsh, unconscionable and oppressive.

In that case, the Court concluded that a by-law banning pets in a strata building was harsh because it was possible for residents to keep some types of pets in the building without having a detrimental impact on the amenity of other residents: see Cooper v SP 58068 [2020] NSWCA 250.

This begs the question:

Can a By-law Prohibit the Charging of E-bikes and E-scooters in a Strata Building?

The answer to that question is most likely “no”.  This is because it is possible to charge e-bikes and e-scooters without creating a fire risk or otherwise having a detrimental impact on the use and enjoyment of the lots and common property by other residents.  Indeed, any by-law that bans e-bikes and e-scooters is not likely to be enforceable.

So what are the options for any owners corporation that wants to reduce the fire risk created by the charging of e-bikes and e-scooters?  There is nothing wrong with an owners corporation introducing a by-law that restricts the right of residents to charge e-bikes and scooters.  For example, a by-law could require residents to apply to and obtain the consent of the owners corporation to charge e-bikes and e-scooters in the building.

Further, a by-law could introduce rules that must be obeyed by residents to minimize the fire safety risk created by the charging of e-scooters and e-bikes.  For instance, a by-law could stipulate that residents need to ensure that their e-bikes and e-scooters (including the lithium batteries that power them and the chargers for them) comply with the applicable Australian standards, that residents periodically monitor their e-bikes and e-scooters whilst they are being charged and residents otherwise take all reasonable steps to minimize a fire safety risk created by the charging of e-bikes and e-scooters.

Whilst it can be difficult to police by-laws that regulate the charging of e-bikes and e-scooters, doing so is not impossible and these by-laws at least give owners corporations the right to control the charging of e-bikes and e-scooters and to do something when residents disobey the by-law.

Can an E-bike and E-Scooter By-law Protect the Owners Corporation?

Further, these types of by-laws can provide the owners corporation with protection in the event that a resident disobeys the by-law and causes a fire when charging an e-bike or e-scooter.  For instance, a by-law could require the resident to indemnify the owners corporation against any property damage that is caused by such a fire and to cover the costs the owners corporation incurs repairing any damage caused by the fire.

Ultimately, the use of e-bikes and e-scooters is on the rise and this means that is now necessary for many owners corporations to grapple with the problem created by the charging of e-bikes and e-scooters.  Introducing an appropriately worded by-law is best practice and will provide an owners corporation with the greatest amount of protection to minimize the risk of a fire caused by the charging of an e-bike or e-scooter.

DO YOU NEED AN E-BIKE AND E-SCOOTER BY-LAW?

Adrian Mueller I BCOM LLB FACCAL I Partner

Since 2002 Adrian has specialised almost exclusively in the area of strata law. His knowledge of, and experience in strata law is second to none. He is the youngest person to have been admitted as a Fellow of the ACSL, the peak body for strata lawyers in Australia. Profile I Linked

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For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.

Over the past few years there has been a huge push for people to buy EV vehicles of all kinds putting significant strain on strata buildings.

The increased number of electric vehicles now in strata blocks comes with a high risk of fire as residents charge their lithium-ion batteries throughout their buildings in their apartments, parking spaces, garages and other areas.

As people look for cheaper and quicker modes of transport e-bikes and e-scooters have become all the rage.

E-bikes and e-scooters have lithium-ion batteries and have sparked a series of fires in strata apartment buildings and based on statistics* pose a major threat as they continue to increase in popularity with a 16% increase in fire related incidences in 2023 and a 94% increase on the previous year.

The risk of e-bikes and e-scooters in strata blocks include:

1. Fire Hazards
2. Improper Charging Practices
3. Storage Challenges
4. Liability Concerns
5. Electricity Costs

How do strata schemes proactively manage the EV situation to reduce the risk of fire and other concerns?

By implementing a comprehensive by-law, covering the areas below, strata schemes can proactively manage e-bike and e-scooter hazards in strata.

1. Proper Charging Guidelines
2. Storage Solutions/Options
3. Registering E-vehicles with Regular Inspections
4. Resident Education Initiatives

Banning e-bikes and e-scooters would be extremely difficult and is unlikely to be enforceable given a lot of owners rely on this mode of transport for work.

An effective by-law will minimise the risk of e-bike and e-scooter fires and enhance the safety of residents and property within the community ensuring proper processes are in place to manage and reduce the risk.

* October 2023 ACCC Lithium-ion batteries and consumer product safety

CLICK HERE FOR AN E-BIKE / E-SCOOTER BY-LAW

Adrian Mueller I BCOM LLB FACCAL I Partner

Since 2002 Adrian has specialised almost exclusively in the area of strata law. His knowledge of, and experience in strata law is second to none. He is the youngest person to have been admitted as a Fellow of the ACSL, the peak body for strata lawyers in Australia. Profile I Linked

Contact Us

For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist. 

By-laws that regulate e-Bikes and e-Scooters.  

e-Bike and e-Scooter lithium-ion batteries have sparked a series of fires in strata apartment buildings and based on the following statistics* pose a major threat as they continue to rise.

• Between January 1 and September 15, 2023, Fire and Rescue NSW reported 149 battery-related incidents – a 16 per cent increase on the same time last year.
• Of these incidents, 22 per cent involved e-mobility devices — a 94 per cent increase on the same period the previous year.

All strata buildings should, before it’s too late, put in place by-laws to regulate the storage and charging of e-scooters and e-bikes to help prevent fires from lithium-ion batteries.

* October 2023 ACCC Lithium-ion batteries and consumer product safety

A BY-LAW THAT REGULATES THE STORAGE & CHARGING OF E-BIKES & E-SCOOTERS

Adrian Mueller I BCOM LLB FACCAL I Partner

Since 2002 Adrian has specialised almost exclusively in the area of strata law. His knowledge of, and experience in strata law is second to none. He is the youngest person to have been admitted as a Fellow of the ACSL, the peak body for strata lawyers in Australia. Profile I Linked

Contact Us

For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist. 

Fire Orders and Cost Recovery By-laws

An owners corporation is only responsible for the common property in its strata scheme.  So how does an owners corporation deal with a fire order that requires it to do work to lot property?  Can a Council issue a fire order against an owners corporation to do work to lot property? If so, can the owners corporation make a by-law to recover from owners the costs it incurs doing fire safety work in their lots? The answers might surprise you.

Strata Law

An owners corporation is the owner of the common property it is strata scheme.  The owners corporation is responsible for managing and controlling the use of the common property and maintaining and repairing the common property.  Those obligations arise under the Strata Schemes Management Act 2015 (Strata Act).

An owners corporation does not own the lots in its strata scheme, and under that Act, the owners corporation has virtually no responsibility in relation to any of the lots.  This is because the lots are privately owned and the owners and occupiers of the lots are generally responsible for managing and maintaining them.  So, under the Strata Act, the owners corporation is generally not responsible for maintaining and repairing lot property.  Further, in general, the owners corporation is only able to adopt budgets and raise levies to cover expenses associated with the common property, not lot property

Fire Orders

But what happens when a Local Council issues a fire order that requires an owners corporation to carry out work to both common property and lot property.  Does the Council have power to issue that order? And does the owners corporation have power to comply with the order and do work that affects lot property?

Planning Laws

The Environmental Planning and Assessment Act 1979 (EPA Act) gives a Local Council power to order the owner of premises to do things that are specified in the order in order the promote adequate fire safety in a building when provisions for fire safety in the building are inadequate to prevent, suppress or prevent the spread of fire.  The EPA Act says that premises include a building and that an owner includes, in the case of land that is the subject of a strata scheme, an owners corporation.  Therefore, the EPA Act gives a Local Council power to order an owners corporation to carry out work to improve fire safety to both common property and lot property.

Case Law

This was confirmed by the NSW Court of Appeal as long ago as 1985.  In 1985, the Court decided the case of Proprietors of Strata Plan 159 v Parramatta City Council.  In that case, the Council had issued a fire safety order to the owners corporation of a strata building which required the owners corporation to carry out fire safety upgrades principally in two lots which were to be used as a restaurant.  The owners corporation challenged the order and argued that the order unfairly burdened other owners with the costs of carrying out fire safety upgrades predominately to those two lots.  However, the Court concluded that the statutory language was clear in permitting a Council to issue a fire order against an owners corporation that required work to be done to lot property.  The Court acknowledged that this meant that sometimes the costs of complying with a fire order would be shared by all of the owners even when the need for fire safety upgrades was confined exclusively to the lots of some of the owners which may seem inequitable.

But the Court considered that there were two answers to this problem.  First, if the legislation clearly allowed a fire order to require an owners corporation to do work to lot property the mere fact that might produce a sense of injustice between owners was not a reason for the Court frustrating the clearly expressed intention of the legislature and it was a matter for the Parliament to change the legislation to overcome any unfairness if it saw fit to do so.  Second, fire is a phenomenon which endangers all owners and occupiers of lots meaning all owners have a common interest in fire prevention and fire safety.  This meant that it made sense for the legislation to allow the Council to issue one fire order against the owners corporation rather than have to issue and monitor compliance with multiple fire orders against numerous parties.  Ultimately, the Court considered that it was in the common interest of all owners for the Council to have the power to issue the fire order against the owners corporation.  The Court’s decision has recently been referred to with approval by NCAT.

Recovery of Costs

If a Council can require an owners corporation to carry out fire safety upgrades to lot property, can the owners corporation recover the cost of performing those upgrades from the relevant owners?  There is no clear answer to that question.  Many owners corporations have introduced cost recovery type by-laws that purport to allow them to recover costs from owners in a variety of circumstances.  There have been several recent cases in which NCAT has invalidated cost recovery type by-laws.  But there are also cases where NCAT has upheld cost recovery type by-laws. Ultimately, if an owners corporation wants to seek to recover from certain owners the costs it incurs carrying out fire safety upgrades in their lots, a cost recovery type by-law will need to be put in place but there may be difficulty enforcing the by-law.

Conclusion

A Council is entitled to issue a fire order against an owners corporation that requires fire safety upgrades to be carried out to lot property.  Where that occurs, the Strata Act gives the owners corporation the right to enter the lots in order the do the work required by the fire order.  If an owners corporation wants to recover the costs it incurs carrying out fire safety upgrades in a particular lot, a cost recovery type by-law will need to be put in place for that purpose.  However, NCAT has recently raised question marks over the validity of cost recovery type by-laws so the recovery of those costs cannot be guaranteed.

Adrian Mueller I BCOM LLB FACCAL I Partner

Since 2002 Adrian has specialised almost exclusively in the area of strata law. His knowledge of, and experience in strata law is second to none. He is the youngest person to have been admitted as a Fellow of the ACSL, the peak body for strata lawyers in Australia. Profile I Linked

Contact Us

For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.

The NSW Department of Fair Trading have published information on the ‘fire safety regulations 2022′ with a fact sheet and FAQs explaining reforms in more detail. 

A timely reminder as the nights and days start to get cooler, winter will soon be here and as owners and tenants use heaters and other electrical items to warm apartments it increases the risk of fires in strata buildings as they choose to stay indoors and out of the cold.

What are the most common causes of fire?

According to Fire and Rescue NSW the most common causes of fires, especially in winter, are:

• Faulty electric and gas heaters
• Items placed too close to heaters
• Children knocking over heaters
• Portable outdoor heaters
• Overloaded powerboards
• Kitchen cooktops and appliances
• Wheat bags kept in bed
• Electric blankets
• Smoking and candles
• Electric bikes and scooters
• Buildings at risk with flammable cladding

Is your building fire safe?

Now is the ideal time to ensure you are familiar and up to date with the fire safety requirements for your strata building and to ensure:

• Your building has had its annual fire safety inspection by an accredited Fire Protection Association Australia (FPAA) inspector, and everything is in working order and in line with the NSW fire safety laws
• Your annual fire safety statement, which is mandatory for most buildings, is lodged with the local council and Fire and Rescue NSW

How do you help ensure your building is fire safe?

A ‘Fire Safety By-law’ can help ensure all tenants and lot owners are fully aware of the fire safety requirements they must obey and to not do anything that create’s a fire safety risk. 

This type of by-Law can also make tenants and owners liable for false fire alarm call out fees or for any damage they cause to the building. 

A ‘Fire Safety By-Law’ can greatly enhance the fire safety of your building, reducing your fire risk.

DO YOU NEED A FIRE SAFETY BY-LAW? CLICK HERE NOW!


DOWNLOAD YOUR FIRE SAFETY FACT SHEET HERE.

Adrian Mueller I BCOM LLB FACCAL I Partner

Since 2002 Adrian has specialised almost exclusively in the area of strata law. His knowledge of, and experience in strata law is second to none. He is the youngest person to have been admitted as a Fellow of the ACSL, the peak body for strata lawyers in Australia. Profile I Linked

Contact Us

For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.