Lot Owner Claims Damages of $850 Million!

Generally we use these  bulletins for educational purposes,  but it’s getting toward that time of the year when everything goes a little crazy in the world of strata title, and so today the emphasis is on providing you with sheer relief that your strata scheme is not tied up with the sort of case in which a decision was recently made by the Supreme Court of New South Wales, where a lot owner commenced proceedings against the owners corporation claiming damages of $850 million!

The Strata Dispute Lot Owner Vs Owners Corporation

The dispute, between the occupant of an apartment located in Sydney and the owners corporation,  began life as a tenancy dispute, but the occupant (tenant), having failed to enlist the support of the NSW Civil & Administrative Tribunal (NCAT),  brought proceedings in the Supreme Court of NSW seeking among other things damages of $850 million against the owners corporation! You can imagine the insurer’s claims manager when that came through…

Needless to say, the proceedings in the Supreme Court of NSW were, to use the words of the Supreme Court Judge dealing with the final version of the proceedings, “frivolous and vexatious” and an abuse of the process of the Court.  Notwithstanding this, the plaintiff lot occupant filed applications of various kinds in the proceedings, made scandalous allegations against the owners corporation’s legal representatives, court officials and even a judge of the Court.

At the heart of the lot occupant’s claim was the suggestion that the owners corporation had somehow been involved in a criminal conspiracy which allegedly caused the plaintiff loss and damage.

Finally, on the sixth application before the Court (some of those applications being interlocutory applications for stays, injunctions and applications for recusal of various judges) the entire application was dismissed and the lot occupant was ordered to pay the owners corporation’s legal costs on an indemnity basis.  This means that the owners corporation was entitled to recover from the lot occupant not only the normal (“party/party”) costs but almost all the legal costs it had expended in having to deal with this application.

Conclusion

So as we head towards the end of the year, and if you are experiencing stress due to the matters which your owners corporation has to deal with, just remember – at least you haven’t been served with a law suit for $850 million!

If you do have issues in your strata scheme JS Mueller & Co Strata Lawyers have the experience and ability to assist you in dealing with these issues, whether they are disputes relating to the operation of the committee, questions about property and renovations, dealing with adjoining land owners and more please contact us on the details below for further assistance.

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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.

Earlier this year Warwick van Ede, specialist strata lawyer and member of the Property Law Committee of the Law Society of NSW invited you to participate in the process of review of the current strata legislation in NSW as part of the statutory review process.

Over 2,300 online survey responses were received and over 200 submissions filed through the NSW Government’s website in relation to the statutory review.

The report on the outcome of the statutory review was finally tabled in the NSW Parliament on Monday 29 November 2021.  In total 37 recommendations were made in relation to proposed amendments to the Strata Schemes Development Act 2015, and 102 recommendations were made in relation to the Strata Schemes Management Act 2015.

The key recommendations of the Strata Schemes Development Act and Strata Schemes Management Act can be found here  2021 Strata Review Tabled in NSW Parliament – Key findings

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

What is the Next Chapter for Pets and Strata?

If you are an owner or occupier of strata property,  you could not help but notice the flurry of activity over the last couple of years, both at a legislative level and in the Courts of New South Wales in relation to the question of pets.

In the next (but probably not the last) instalment of this saga, the New South Wales Government is implementing amendments to the legislation and to regulations, to commence on 25 August 2021.

Amendment to the Strata Schemes Management Act 2015

Commencing on 25 August 2021, section 137B will be inserted into the Act. Section 137B effectively prevents a by-law, or a decision of an owners corporation under a by-law, from banning the keeping of an animal within a strata scheme unless the animal unreasonably interferes with another occupant’s use and enjoyment of their lot or the common property.

The question which arises from this section is what is meant by “unreasonably interferes with another occupant’s enjoyment of their lot or the common property”?

The New Regulation

Also, now to commence on 25 August 2021 is the Strata Schemes Amendment (Pets) Regulation.

The specific purpose of this regulation is to set out, for the purposes of section 137B, the circumstances in which the keeping of an animal unreasonably interferes with an owner or occupant’s use and enjoyment of their lot.

In short, this new regulation says that an animal will cause an “unreasonable interference” with an owner or occupant’s use and enjoyment of their lot if:

• the animal makes a noise which interferes with the peace, comfort and convenience of another occupant;
• the animal repeatedly runs at or chases another occupant, visitor or another animal;
• the animal repeatedly causes damage to the common property or to another lot;
• the animal endangers the heath of another occupant through infection or infestation;
• the animal causes a persistent offensive odour that penetrates another lot or the common property; or
• for dogs and cats, the owner of the animal fails to comply with orders under the Companion Animals Act 1998.

The provisions also pick up the provisions of the Companion Animals Act 1998 which refer to a “restricted” dog and a “menacing or dangerous” dog. Those dogs will be able to be banned from strata buildings.

Conclusion

It will be interesting to see whether these additions to the strata legislation assist or provide more interpretive problems for owners corporations.

Author I Warwick van Ede I Lawyer I BEc LLM Acc Spec (Property).

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

Are you aware of the traps in collective sales and the potential problem with option agreements?

What are Option Agreements?

Option agreements are frequently used as a mechanism to facilitate collective sales of lots in a strata scheme.  Such option agreements (commonly called “Options”) provide a number of helpful mechanisms and tools to provide a degree of flexibility.

The Traps of Collective Sales Option Agreements

A recent decision of the Supreme Court of NSW has demonstrated that there can be traps for owners of strata lots who are using Options as part of a collective sale process.

The case provides helpful reminders about how options should be used in a collective sale process, and the matters to be aware of if lot owners are going to be properly protected in that process.

What Should You be Aware of?

Here we discuss option agreements and what to be aware of with strata block collective sales Traps in Strata Block Collective Sales

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