North East Developments Pty Ltd v The Owners Strata Plan 53374 [2006] NSWLC 48

Local Court of New South Wales

CITATION: North East Developments Pty Ltd v The Owners Strata Plan 53374 [2006] NSWLC 48 JURISDICTION: Civil PARTIES: North East Develpoment Pty Ltd The Owners Strata Plan 53374 FILE NUMBER: 2981/06 PLACE OF HEARING: Downing Centre Local Court DATE OF DECISION: 12/18/2006 MAGISTRATE: Magsitrate B A Lulham CATCHWORDS: Levies under Strata Titles Legislation (recovery of same) - Effect of order of Tribunal as to basis for levying of rates Recovery of money paid under a mistake of law. LEGISLATION CITED: Strata Scheme Management Act 1996 – s.48, s.75, s.76, s.77, s.78, s.80, s.158(5), s.183, s.209, s.210, s.229(2) CASES CITED: Northeast Development Pty Ltd v The Owners of Strata Plan 53374 David Securities Pty Ltd v Commonwealth of Australia (1992) 175 CLR 353. Counsel for Plaintiff: Mr R. Newlands SC, Mr B. Kramer REPRESENTATION: Solicitors for Plaintiff: Andreones Pty Ltd Counsel for Defendant: Mr P.W. Gray SC Solicitors for Defendant: David Le Page ORDERS: Judgment and verdict in favour of the defendant

Reasons for Decision

BACKGROUND TO DISPUTE 1 The plaintiff is the owner of Lots 9 and 10 of Strata Plan No. 53374. The Strata Plan relates to a building which was described by a valuer, Mr Craig Miller, in proceedings before the Strata Schemes Board in New South Wales in 2000, as consisting of a 'ten level prestigious residential apartment building, known as 'The Ritz Cremorne''. There are ground floor recreational facilities, two levels of parking and seven levels of accommodation comprising ten units. Mr Miller in those proceedings valued the market value of Lots 9 and 10, owned by the plaintiff, at $10,300,000. The cheapest unit was valued at $3,500,000. In the proceedings before the Strata Schemes Board, Commissioner Cochrane reallocated the unit entitlements with the effect that the unit entitlement for each of Lots 9 and 10 was increased from 108 to 122. Alterations were made to the unit entitlement in relation to other lots. A copy of the Order of the Board was served on the Secretary of the Body Corporate on 11 September 2000. The altered unit entitlements were used by the Body Corporate to levy contributions from the unit holders from 1 September 2000. The plaintiff paid the levies until 2006. A copy of the Order of the Strata Schemes Board reallocating the unit entitlements was not registered with the Registrar General until 3 March 2006. The plaintiff claims that as the Order of the Board was not registered, the Body Corporate was not entitled to levy the plaintiff's contribution on the unit entitlement of 244 for Lots 9 and 10, but were required to levy the contributions on the unit entitlement recorded at the Registrar General's Department. The difference in the levies which were made and the levies which the plaintiff contends should have been made, was $40,745.22. The plaintiff sues for that amount plus interest.