The Owners – Strata Plan No 2661 v Selkirk [2024] NSWSC 760

Supreme Court New South Wales

Medium Neutral Citation: The Owners – Strata Plan No 2661 v Selkirk [2024] NSWSC 760 Hearing dates: 12 June 2024 Decision date: 21 June 2024 Jurisdiction: Common Law Before: Leeming JA Decision: 1. Grant leave to appeal, confined to ground 3 of the summons filed on 5 March 2024, and otherwise refuse leave. 2. Appeal allowed. 3. Answer the question "Whether a mitigation defence is available in answer or partial answer to a claim for damages under s 106(5)": It is open to an owners corporation to seek to establish that all or part of a lot owner's claimed damages are not damages for foreseeable losses as a result of the owners corporation's breach of duty, including by establishing that the lot owner has behaved unreasonably in failing to mitigate his, her or its loss. 4. Note that the remittal pursuant to order 3 made by the Appeal Panel on 6 February 2024 will be conducted in accordance with these reasons. 5. The Registrar of this Court be directed to refer a copy of these reasons for judgment, and a copy of part of the reasons of Senior Member Tyson delivered on 15 August 2023 (insofar as those reasons have been provided to this Court) to the Office of the Legal Services Commissioner, with a view to considering whether any steps should be taken in relation to the Senior Member's findings at [123]. Catchwords: LAND LAW – strata title – duties of owners corporation – duty to maintain and repair common property – claims for rectification works and damages by lot owner under Strata Schemes Management Act 2015 (NSW), s 106(5) and 232(1) following breach of duty – whether entitlement of owners corporation to apply for orders to inspect and perform works on lot owner's property an answer to resistance by lot owner to accessing her property – whether open to owners corporation to rely on unreasonable conduct by lot owner in failing to mitigate her loss in partial defence to claim for damages – consideration of nature of duty owed by owners corporation and statutory right to damages under s 106 Legislation Cited: Australian Consumer Law, s 236 Civil and Administrative Tribunal Act 2013 (NSW), s 83, cl 6(2) of Sch 4 Civil Liability Act 2002 (NSW), Pt 1A, s 5D Civil Procedure Act 2002 (NSW), s 56 Court Suppression and Non-publication Orders Act 2010 (NSW) Home Building Act 1989 (NSW) Legal Profession Uniform Law Australian Solicitors' Conduct Rules 2015 (NSW), r 5 Residential Tenancies Act 2010 (NSW), s 52 Safety, Rehabilitation and Compensation Act 1988 (Cth) Strata Schemes Management Act 1996 (NSW), s 62 Strata Schemes Management Act 2015 (NSW), ss 4, 106, 122, 123, 124, 232 Trade Practices Act 1974 (Cth), ss 82, 87 Cases Cited: Adeels Palace Pty Ltd v Moubarak (2009) 239 CLR 420; [2009] HCA 48 AK v Western Australia (2008) 232 CLR 438; [2008] HCA 8 Alexandria Landfill Pty Ltd v Transport for NSW (2020) 103 NSWLR 479; [2020] NSWCA 165 Bak v Glenleigh Homes Pty Ltd [2006] NSWCA 10 British Westinghouse Electric and Manufacturing Co Ltd v Underground Electric Railways Co of London Ltd [1912] AC 673 Brotherhood of St Laurence v Sarina Investments Pty Ltd [2024] VSCA 46 Carli v The Owners - Strata Plan No 56120 [2018] NSWCATCD 55 Carr v Carr [2022] NSWSC 166; 21 ASTLR 511 CJD Equipment Pty Ltd v A&C Constructions Pty Ltd [2011] NSWCA 188 Comcare v Martin (2016) 258 CLR 467; [2016] HCA 43 Edwin Davey Pty Ltd v Boulos Holdings Pty Ltd [2022] NSWCA 65; 20 BPR 42,355 Fisher v Nonconformist Pty Ltd [2024] NSWCA 32 Fitzgerald v Penn (1954) 91 CLR 268; [1954] HCA 74 Fox v Percy (2003) 214 CLR 118; [2003] HCA 22 Galafassi v Kelly (2014) 87 NSWLR 119; [2014] NSWCA 190 Glenquarry Park Investments Pty Ltd v Hegyesi [2019] NSWSC 425 Henville v Walker (2001) 206 CLR 459; [2001] HCA 52 Jonval Builders Pty Ltd v Commissioner for Fair Trading (2020) 104 NSWLR 1; [2020] NSWCA 233 Karacominakis v Big Country Developments Pty Ltd [2000] NSWCA 313; 10 BPR 18,235 Liberant v The Owners - Strata Plan No 62713 [2020] NSWCATCD 16 March v E & MH Stramare Pty Ltd (1991) 171 CLR 506; [1991] HCA 12 Masterton Homes Pty Ltd v LED Builders Pty Ltd (1996) 33 IPR 417 Military Rehabilitation and Compensation Commission v May (2016) 257 CLR 468; [2016] HCA 19 Owners SP 76674 v Di Blasio Constructions PL [2014] NSWSC 1067 Owners Strata Plan 50276 v Thoo [2013] NSWCA 270; 17 BPR 33,789 Queensland v Masson [2020] HCA 28; (2020) 94 ALJR 785 Riley v The Owners - Strata Plan 73817 [2012] NSWCA 410 Schwartz Family Co Pty Ltd v Capitol Carpets Pty Ltd [2017] NSWCA 223 Seiwa Pty Ltd v Owners Strata Plan 35042 [2006] NSWSC 1157; 12 BPR 23,673 Selkirk v The Owners – Strata Plan No 2661 [2022] NSWSC 858 Selkirk v The Owners - Strata Plan No 2661 [2024] NSWCATAP 17 Smith v Owners – Strata Plan No 3004 [2022] NSWSC 1599 Sydney Trains v Argo Syndicate AMA 1200 [2024] NSWCA 101 Tapp v Australian Bushmen's Campdraft & Rodeo Association Ltd (2022) 273 CLR 454; [2022] HCA 11 The Owners - Strata Plan No 74232 v Tezel [2023] NSWCA 35 The Owners – Strata Plan No 74835 v Pullicin; The Owners – Strata Plan No 80412 v Vickery [2020] NSWCATAP 5 The Owners – Strata Plan No 76674 v Di Blasio Constructions Pty Ltd [2014] NSWSC 1067 The Owners - Strata Plan No. 36613 v Doherty; Doherty v The Owners - Strata Plan No. 36613 [2021] NSWCATAP 285 The Owners SP 35042 v Seiwa Australia Pty Ltd [2007] NSWCA 272; 13 BPR 24,789 Vickery v The Owners – Strata Plan No. 80412 (2020) 103 NSWLR 352; [2020] NSWCA 284 Wallace v Kam (2013) 250 CLR 375; [2013] HCA 19 Weld-Blundell v Stephens [1920] AC 956 White v Betalli (2007) 71 NSWLR 381; [2007] NSWCA 243 Williams v Pisano (2015) 90 NSWLR 342; [2015] NSWCA 177 Young v Chief Executive Officer (Housing) [2023] HCA 31 Category: Principal judgment Parties: The Owners – Strata Plan No 2661 (Plaintiff) Simone Selkirk (Defendant) Representation: Counsel: C Purdy (Plaintiff) A Rizk (Defendant)