e-Bike and e-Scooter Battery Fires in Strata on the Increase

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 Partner JS Mueller & Co Lawyers specialising in Strata 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. 




As Summer Heats up so do the Air Conditioning Disputes!

As Summer Heats up so do the air conditioning complaints!

Summer is here and it’s predicted to be a hot summer season with temperatures in the high 30’s and some days even reaching 40’s.

It’s the time of year when lot owners and tenants look to install and use air conditioners to relieve themselves from the oppressive heat.

Did you know air conditioners are high on the list for strata disputes?

Air conditioners can cause all types of complaints in strata such as:

  • What if the noise of the unit upsets the peace and quiet?
  • Who’s responsible for maintenance?
  • What if the unit leaks water into another apartment?
  • Is it in line with the appearance of the lot?
  • and much more!

A Good By-law Addressing Air Conditioning Units is Important

For these reasons it’s important that you have a good by-law in place regulating the installation and use of them  that covers the following (and much more):

  • What type of air conditioning equipment is appropriate?
  • Where can the unit be installed?
  • Will council approval be required?
  • Will owners corporation approval be required?
  • Will it be installed on common property?
  • Will a by-law be required for individual lots, or can it be covered under a general by-law?

A good by-law will ensure that your summer is as stress free as possible and reduces (and hopefully eliminates) any strata disputes in relation to air conditioners.


Adrian Mueller Partner JS Mueller & Co Lawyers specialising in Strata 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.




Time Ticking on Government Funding for EV Charging

EV Charging – Grant Funding Deadline

Owners Corporations considering installing electric vehicle charging infrastructure in the strata scheme should be aware of the availability of grants from the NSW State Government to assist owners corporations with at least 10 apartments to install EV charging infrastructure in a common area.

The process takes place over two steps.

Step 1 – Feasibility Assessment

Owners corporations which believe they may be eligible can make application for a feasibility assessment.  The cost for an owners corporation making an application is $2,000.00 plus GST.  The New South Wales Government will cover any other part of the cost of the assessment process.

To be eligible, your strata scheme must:

  • be located in NSW;
  • be a registered strata scheme under the Strata Schemes Development Act 2015;
  • contain 10 or more apartments as a class 2 building;
  • have a private and/or common property visitor (or shared) off-street common property parking as part of the strata scheme;
  • have no more than 4 EV chargers already installed (for buildings with less than 40 apartments) or no more than 10% of the number of parking spaces for buildings over 40 apartments;
  • be able to implement EV charging infrastructure upgrades that can be accessed by all residents.

Step 2 – Grant Implementation

If the Step 1 feasibility assessment report is positive then the owners corporation will be invited to apply for Step 2 of the grants.

The owners corporation  will firstly need to meet for the purpose of passing some necessary motions and to empower the strata committee to obtain quotes for the Step 2 works.  Once those quotes are obtained then they are submitted together with some other documentation to the New South Wales Government for review, and once approved then the owners corporation can proceed to installation.

The government will fund 80% (up to $80,000.00 per building) of eligible infrastructure costs and will also cover 50% (up to $1,200.00 per building) of eligible software subscription costs for two years.

Act Now – Limited EV Government Funding

There is $10 million available to assist eligible NSW strata schemes, but it is on a “first come first served” basis.

It is therefore critical that if your owners corporation is considering undertaking works of this kind, that you begin to consider making application for  the funds which may be available to you as soon as possible.

If your strata scheme requires assistance in any aspect of the process, for example in drafting the necessary motions to take the matter forward, then we would be happy to assist you.

We also specialise in EV by-laws should you require a new EV by-law or a review of an existing EV by-law.


Warwick van Ede Strata Lawyer, Accredited Property Law Specialist, Litigator

Warwick van Ede I BEc LLM I Lawyer

Since 1990, Warwick has specialised in strata law, property law and litigation. Recognised for his expertise, he is also a NSW Law Society Accredited Specialist in Property Law. In 2021 he was selected to serve on the Property Law Committee of the Law Society of NSW. Profile I LinkedIn

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.




NSW Strata Reforms – The New Laws Explained!

Will your by-laws need updating in line with the new Strata Laws?

Since last week’s article where we spoke about ‘phase 1’ of the strata law reforms, the proposed amendments to the Strata Schemes Management Act 2015 (NSW) have been released.

Below we explain the new proposed strata laws and share the timeline for their introduction here.

Original Owners Votes

  •  If a scheme comprises of more than two lots the proposed amendments provide that the value of a vote cast by an original owner, usually a developer, of a strata scheme may be reduced.

Strata Committees

  • Committee member removal now only requires an ordinary resolution and once removed they’re not eligible to be on the committee for 12 months.
  • Where it is called for, an election for a committee can take place at any general meeting, not just the AGM.
  • A call for nominations to the committee must be included in the general meeting notice.
  • A member with a conflict of interest must be excused from voting and discussion on that matter.

Strata Managers

  • Must provide notice to the owners corporation 6 months prior to expiration of their agency agreement.
  • Fair Trading can recommend to NCAT that a compulsory agent be appointed to manage dysfunctional strata schemes.

Internal Funds Transfer

  • Under the proposed amendment for internal funds transfers, the owners corporation must, within three months of the transfer, decide at a general meeting, if the funds should be repaid, and if yes, how it should be done – via a simple reverse transfer or by special levy.

Emergency Repair Levies

  • The proposed amendments will reduce from 30 days to 14 days the time period for payment of a special levy for urgent repairs. This amendment is for necessary building repairs to mitigate any serious and imminent threats to the health and/or safety of building occupants.

Work Quotes

  • Multiple quotations for works exceeding $30,000 will now be required for all schemes – small and large – Also, the comparative quotations will need to be for people or companies that are not connected with each other.

Pets

  • A pet bond or fee can no longer be charged by the owners corporation.
  • A by-law cannot impose unreasonable burdens on people with assistance animals.

By-laws

  • Under proposed changes, owners corporations may consolidate the by-laws for the scheme only by special resolution – whether or not a by-law has been amended, repealed or added.
  • Two lot strata schemes do not need to pass a resolution to issue a ‘Notice to Comply’ regarding a by-law breach.

Books and Records

  • The strata roll and other mandatory records must now be kept electronically.

Rentals

  • Rental agents will be required to give tenants and lessees a copy of a strata scheme’s by-laws and strata management statement on commencement of a lease and whenever documents are updated if they are not provided by the landlord or head tenant.
  • Rental agents will have to provide the owners corporation notice that a lot has been leased or subleased if the notice hasn’t been provided by the landlord or head tenant.
  • Tenants can give notice of the lease to the owners corporation if the landlord, head tenant or rental agent fails to do so. In giving notice of the lease or sublease the regulations may prescribe the documents or other evidence a tenant must provide.

Service of Documents

  • The regulations may provide for the service of documents, including by prescribing additional methods of service.

Meetings

  • General Meeting Notices – time period for notices increases from 7 days to 14 days.
  • Company Nominees – number of votes to be limited in a similar way to the way proxy votes are limited.
  • AGM – Delivery of development documents by the developer must be done 14 days before the first AGM.

Community Titles

  • Most of the above proposals will also apply to Community Title regulations.

Strata Renewals

  • Allowing a strata renewal committee to operate for 2 years instead of 1 year to reflect the length of time it can take for that committee to develop a strata renewal proposal.
  • Permitting the Land and Environment Court to allow a collective sale of a strata building to proceed even though some of the preliminary steps associated with the sale have not been followed correctly (eg; inadequate meeting notice periods) if that has not resulted in a substantial injustice.
  • Allowing dissenting owners who do not object in good faith to have costs awarded against them (eg; where an objecting owner is a developer who is trying to obstruct a collective sale to another developer)

More information

NSW Government – https://www.nsw.gov.au/media-releases/critical-reforms-to-strata-laws

Amendment Bill – https://www.parliament.nsw.gov.au/bills/Pages/bill-details.aspx?pk=18511

Timeline – https://www.parliament.nsw.gov.au/bill/files/18511/SPI%20-%20Strata%20Legislation%20Amendment%20Bill%202023.pdf


Adrian Mueller Partner JS Mueller & Co Lawyers specialising in Strata 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.




NSW Strata Reforms Finally Moving Forward!

The NSW Strata Reforms Phase 1

The NSW Government is moving ahead with phase one of the reforms to strata laws providing benefit to those living in strata. The first phase includes:

  • Providing transparency – with collective sales and renewal processes
  • Removing restrictions on pets – residents with pets will no longer be required to pay fees, bonds or for insurances for the joy of having a pet
  • Requiring multiple quotes – ensuring competitive pricing is obtained for goods and services
  • Giving Fair Trading approval to ask NCAT – to appoint compulsory strata managing agents to help manage dysfunctional strata schemes

Some Significant Changes…

Some of the more significant changes include:

Strata Committees

  • Committee member removal now only requires an ordinary resolution and once removed they’re not eligible to be on the committee for 12 months
  • Where it is called for, an election for a committee can take place at any general meeting, not just the AGM
  • A call for nominations to the committee must be included in an AGM notice
  • A member with a conflict of interest must be excused from voting and discussion on that matter

Strata Managers

 Must provide notice to the owners corporation 6 months prior to expiration of their agency agreement.

  • Fair Trading can recommend to NCAT that a compulsory agent be appointed to manage dysfunctional strata schemes

Meetings

  • General Meeting Notices – time period for notices increases from 7 days to 14 days
  • Company Nominees – number of votes to be limited in a similar way to the way proxy votes are limited
  • AGM – Delivery of development documents by the developer must be done 14 days before the first AGM

Quotations

  • Multiple quotations for works exceeding $30,000 will now be required for all schemes – small and large

Pets

  • A pet bond or fee can no longer be charged by the owners corporation
  • A by-law cannot impose unreasonable burdens on people with assistance animals

Books/Records

 Must now be kept electronically

Strata Renewals

  • Allowing a strata renewal committee to operate for 2 years instead of 1 year to reflect the length of time it can take for that committee to develop a strata renewal proposal
  • Permitting the Land and Environment Court to allow a collective sale of a strata building to proceed even though some of the preliminary steps associated with the sale have not been followed correctly (e.g. inadequate meeting notice periods) if that has not resulted in a substantial injustice.
  • Allowing dissenting owners who do not object in good faith to have costs awarded against them (e.g. where an objecting owner is a developer who is trying to obstruct a collective sale to another developer)

 More information:

NSW Government – https://www.nsw.gov.au/media-releases/critical-reforms-to-strata-laws

Amendment Bill – https://www.parliament.nsw.gov.au/bills/Pages/bill-details.aspx?pk=18511


Adrian Mueller Partner JS Mueller & Co Lawyers specialising in Strata 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.




Parking Space Levies – The Question of Visitor Spaces

Are Visitor Parking Spaces Exempt from Levies?

A recent decision of the Appeal Panel of NCAT has re-examined the question of as to whether visitor parking spaces in a residential strata complex qualify for exemption from levies which may be payable pursuant to the Parking Space Levy Act 2009 (NSW).

NSW Government Introduces the Parking Space Levy Act

An attempt to discourage or reduce traffic congestion in certain key Sydney business districts, in 2009  the NSW Government introduced the Parking Space Levy Act , the effect of which was to make a levy payable by landowners  on certain off-street parking spaces located in specified districts.

In broad terms, the districts to which the legislation currently applies are:

  • Sydney CBD;
  • North Sydney/Milsons Point;
  • Bondi Junction;
  • Chatswood;
  • Parramatta; and
  • St Leonards.

There are designated maps which set out in detail the parts of those areas to which the levy applies, and the levy has two categories. Category 1 (Sydney CBD and North Sydney/Milsons Point) has the highest levy rate, and  the balance of districts are designated as Category 2, for which a lower rate is payable.

The relevant legislation also contains exemptions, one of which is set out in Regulations 7 & 8 of the Parking Space Levy Regulation 2009 (the Regulation). One of the exempt purposes is where the parking spaces are for “the parking of motor vehicles by persons who reside on the premises or an adjoining premises”.

NCAT Disputes Visitor Car Space Assessment

The premises in question in this case were located in Milsons Point, and were therefore designated as “Category 1”. The Chief Commissioner of State Revenue made a determination that the strata scheme in Milsons Point was liable to pay a car space levy on 5 of 7 car spaces which were set aside for visitors to the property. The strata scheme itself is a mixed commercial and residential building containing 33 residential apartments and 7 commercial suites.

An application was made by the strata scheme to the NSW Civil and Administrative Tribunal (NCAT) disputing the assessment made by the Chief Commissioner of State Revenue on the basis that the visitor car spaces in question should have been considered as “exempt” parking spaces.

Specifically, the strata scheme’s original application to NCAT argued that the exemptions described in Regulations 7 and 8 of the Regulations for “the parking of motor vehicles by persons who reside on the premises or an adjoining premises” should include parking spaces set aside for visitors of persons who reside on the premises.

The original decision of NCAT was that visitor car spaces were not exempt. The owners corporation then appealed the original NCAT decision in relation to this issue to the Appeal Panel.

The Decision of the Appeal Panel

The Appeal Panel rejected the proposition that parking for guests of residents was intended to be covered by the relevant exemption.

The Appeal Panel noted that Regulations 7 and 8 contained a number of specific exemptions including for parking of contractors and consultants providing services on the premises. The Appeal Panel argued that  if the Parliament had intended for an exemption to be granted for the parking of “guests”, then it could have included that exemption explicitly within those Regulations, which it did not.

The Appeal Panel noted that limiting the exemption in this way was also consistent with the aims of the legislation, being to discourage car use in the area. The Appeal Panel found that the parking spaces in question were for a combination of exempt and non-exempt purposes, and therefore not “exclusively” set aside for an exempt purpose.

The Appeal Panel therefore upheld the original decision of NCAT, and the original decision of the Chief Commissioner of State Revenue to apply the levy to these car spaces was affirmed.

The Conclusion

Although the Act and the Regulations apply only to a limited set of areas within Sydney, it is within the power of the Government to expand the list of areas to which that levy will apply in the future.  In light of current public policy settings regarding driving and motor vehicle use generally, the exercise of that power to expand the list of leviable areas in Sydney must be considered a possibility.

Owners Corporations within Category 1 and Category 2 areas should be aware of their obligations under the Act and the Regulations,  and the applicability of those legislative instruments to their particular circumstances.

Need Help with a Parking Issue?

We are happy to provide guidance to strata schemes who seek interpretation of the application of any Ruling in relation to levies of this kind or simply require general parking advice in relation to the issue.


Warwick van Ede Strata Lawyer, Accredited Property Law Specialist, Litigator

Warwick van Ede I BEc LLM I Lawyer

Since 1990, Warwick has specialised in strata law, property law and litigation. Recognised for his expertise, he is also a NSW Law Society Accredited Specialist in Property Law. In 2021 he was selected to serve on the Property Law Committee of the Law Society of NSW. Profile I LinkedIn

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.




Does the Joy of Keeping a Pet in Strata come at a Cost?

Keeping a pet in some strata schemes can be costly when schemes charge an additional fee or bond for the joy of having a pet!

The good news is that the NSW Government as part of the reform has labelled these fees and bonds as being costly, unreasonable, and unnecessary as lot owners already pay levies.

Owners already pay for the upkeep of their strata schemes including the cost of insurance to cover damage to common areas as part of their levies.

The reform is part of phase one of the NSW Government’s review to ensure we have a more transparent and fairer strata system.

This week the NSW Government will move forward on critical reforms implementing changes to ensure the system is fairer and transparent… https://www.nsw.gov.au/media-releases/critical-reforms-to-strata-laws

So, will there be a blanket ban on pet fees and bonds under the reforms for strata laws governing community living arrangements?


ARE YOUR PET BYLAWS CURRENT? DO YOU NEED A REVIEW?


Adrian Mueller Partner JS Mueller & Co Lawyers specialising in Strata 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 Linkedin

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.




BBQs, Pools, Gyms, Summer! Get your By-laws Right!

By-laws for BBQs, Pools and Gyms

Hot summer weather and the festive season is upon us and what a better time for lot owners and tenants to get fit, have a dip and pull out the barbie on a balmy summers day.

As the weather warms up to higher temperatures, so does the festive cheer. We recommend that reviewing and updating the following by-laws to help ensure that your strata blocks have clear rules and a stress free summer festive season.

BBQs – Fire Safety and Smoke Drift

For safety and smoke drift purposes it is highly recommended that a comprehensive by-law regulating (sometimes prohibiting) the use of BBQs on balconies.

Regulations on the type of BBQs such as

  • Smokers
  • Open fires
  • Storage of LPG bottles, inflammable liquids and other substances and materials

All of these items should be considered as part of your by-laws.

Pools – Don’t Ignore the Potential Risks

A communal pool in strata has its benefits, but the risks cannot be ignored that’s why it’s important to have a clear set of communal rules in the form of a by-law to ensure everyone stays safe.

A by-law with clear communal rules such as:

  • ‘No running’, ‘no diving (in shallow water)’ and ‘no bringing of glass’ at the pool are all great ways to help ensure everyone’s safety.
  • Electricity and water do not mix well, so it’s important to minimise the risk of accidents by limiting electrical use around pools.
  • And…who can and cannot use the pool.

Gyms – Reduce your Risks

Like pools, gyms in strata complexes have many benefits however come with safety risks and that’s why it’s critical to have a set of by-law rules to ensure everyone’s safety.

  • Keeping noise to a minimum
  • Hours of gym operation
  • Safety rules
  • Use and cleaning of equipment and more

Our specialist team of strata lawyers have been developing and reviewing by-laws for over 40 years. So, if you’re looking for a by-law or a review, we’d be happy to assist.

Get your by-laws right – speak to the experts!


Adrian Mueller Partner JS Mueller & Co Lawyers specialising in Strata 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.




Will there be a Short Term Rental Levy for NSW?

A Short Term Accommodation Levy for NSW?

Key tourism area’s across NSW are weighing in on Victoria’s short term rental accommodation (STRA) levy, agreeing that bed taxes were essential..

However, they’re concerned about the lack of details  on how the levy would work across platforms such as Airbnb and Stayz across NSW.

Is your Short Term Accommodation By-law Current?

Levy or no levy it’s important to ensure that your STRA by-laws are up to date and in line with you local council short term rental accommodation regulations, especially coming up to the festive season?


DOES YOUR SHORT TERM RENTAL ACCOMMODATION NEED A REVIEW?

Will NSW be the next state to impose a short term rental accommodation levy? Read on


Adrian Mueller Partner JS Mueller & Co Lawyers specialising in Strata 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-law Breach: NCAT Reject the Mixed Bag Approach

Lot Owners who Breach By-laws

An owners corporation is able to take legal action in NCAT against an owner who breaches its by-laws.

There are typically two types of legal action the owners corporation can take against the owner.

First, the owners corporation can apply to NCAT for an order to require the owner to comply with the by-laws or to stop breaching them.  Second, the owners corporation can ask NCAT to impose a monetary penalty on the owner if the owner has breached a by-law after being given a notice to comply with the by-law.

However, what happens when an owners corporation seeks both an order to stop an owner breaching a by-law and a penalty in the same legal action?  Can NCAT do both at the same time?

A recent decision by NCAT’s Appeal Panel sheds light on that issue.

Introduction to By-law Breach Case

Tania Brown lives in a unit in a strata building in NSW.  Ms Brown keeps dogs in her unit.

The building is governed by a by-law which requires owners and occupiers of lots to obtain owners corporation approval to keep dogs in their units.  The owners corporation alleged that Ms Brown had not obtained any approval to keep her dogs and that her dogs barked and caused a nuisance to other residents.

On 3 December 2021, the owners corporation issued Ms Brown with two notices to comply with by-laws.

The first notice alleged that Ms Brown had breached the noise by-law by allowing her dogs to constantly bark which disturbed the peaceful enjoyment of other residents.

The second notice alleged that Ms Brown had breached the keeping of animals by-law by having 4 large dogs within her unit without the approval of the owners corporation.

Prior to those notices being issued, Ms Brown had agreed to remove the dogs by 1 December 2021 in a settlement agreement made at a mediation conducted by NSW Fair Trading.

By-law Breach Legal Action

The owners corporation alleged that Ms Brown did not remove the dogs contrary to the settlement agreement and had continued to breach the by-laws after it issued the two notices to comply against her.

Consequently, the owners corporation commenced legal action in NCAT against Ms Brown.  In that legal action the owners corporation sought an order for Ms Brown to remove her dogs and a further order that Ms Brown be penalised $1,100.00 for contravening the by-laws after the notices to comply were issued against her.

In July 2022, the NCAT case was listed for a hearing at which the owners corporation was successful and orders were made, by the consent of Ms Brown and the owners corporation, to require Ms Brown to pay an $1,100.00 penalty to the owners corporation and remove all but one dog from her unit.  The order imposing the penalty would not apply if Ms Brown removed the dogs by 19 July 2022.

The Appeal Against NCAT

Shortly afterwards, Ms Brown filed an appeal against the orders made by NCAT, even though she agreed to those orders being made.  Despite that, Ms Brown’s appeal was successful.

The orders made by NCAT were set aside and the case was sent back to NCAT for a further hearing.

A Mixed Bag?

During the course of the appeal, NCAT’s Appeal Panel considered whether it was possible for an owners corporation to seek in the same proceedings in NCAT both an order to require an owner to comply with a by-law (in this case by removing dogs from a unit) and a further order for a monetary penalty to be imposed on the owner.

The Appeal Panel concluded that this was not possible essentially for three reasons.

First, different procedural rules apply to a mixed application seeking general orders and the imposition of a penalty because, for example, the rules of evidence do not apply to an application for general orders but, in contrast, the rules of evidence do apply to proceedings for the imposition of a penalty.

The Appeal Panel considered those different rules indicated that the Legislature intended that separate proceedings would need to be brought by an owners corporation to seek general orders and the imposition of a penalty.

Second, the Appeal Panel held that procedural fairness could not be afforded to the parties in mixed proceedings where different rules of evidence applied and a party could claim civil penalty privilege when giving evidence in proceedings for the imposition of a penalty but doing so would disadvantage that party in proceedings seeking general orders for compliance with the by-law.

Third, the Appeal Panel noted that different appeal rights exist in relation to an application for general orders and an application for the imposition of a penalty.  General orders can be challenged by way of an internal appeal to NCAT’s Appeal Panel whereas an appeal against a penalty needs to be filed in a Court.

The Appeal Panel concluded that the Legislature did not intend that an owner would be required to lodge two appeals to different bodies to challenge general orders and penalties made against him or her in the same proceedings in NCAT.

It was for these reasons that the Appeal Panel ordered the owners corporation to start again in NCAT and to only seek a general order to require Ms Brown to remove all but one of her dogs, not a penalty.

Conclusion

The decision of the Appeal Panel means that an owners corporation can no longer file one application in NCAT seeking both orders to require an owner or occupier of a lot to comply with a by-law and for a penalty to be imposed on the owner or occupier.

Instead, the owners corporation will either need to decide whether it wants to seek general orders or a penalty and commence one set of proceedings to seek either remedy or alternatively file two separate applications in NCAT, one seeking general orders for compliance with the by-law and the other seeking the imposition of a penalty.

No doubt commencing two separate proceedings would add to the time, cost and complexity of the case and quite possibly render it commercial unviable for an owners corporation to seek both general orders and a penalty against an owner or occupier who breaches its by-laws.

Case Name: Brown v The Owners – Strata Plan No. 82527 [2022] NSWCATAP 328

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Adrian Mueller Partner JS Mueller & Co Lawyers specialising in Strata 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.