Carre v Owners Corporation - SP 53020 [2003] NSWSC 397

Reported Decision : 58 NSWLR 302

New South Wales Supreme Court

CITATION : Carre v Owners Corporation - SP 53020 [2003] NSWSC 397 HEARING DATE(S) : 24/04/03 JUDGMENT DATE : 14 May 2003 JURISDICTION: Equity Division JUDGMENT OF : Barrett J DECISION : Orders enabling plaintiff to pursue claim on behalf of owners corporation in District Court subject to plaintiff's indemnifying owners corporation for costs

CATCHWORDS : REAL PROPERTY - strata and related titles and occupancy - air conditioning unit servicing one lot - some components within lot others within common property - District Court action by lot owner against persons allegedly responsible for defects in air conditioning system - need for owners corporation as party to proceedings - CORPORATIONS - bodies corporate other than companies and associations - owners corporation constituted by strata titles legislation - applicability of "proper plaintiff rule" - whether Supreme Court can make orders enabling lot owner to pursue derivative claim for owners corporation in District Court - auxiliary equitable jurisdiction - imperfect analogy with company - imperfect analogy with trustee - fifth "justice" exception to Rule in Foss v Harbottle Corporations Act 2001 (Cth), Pt 2F.1A LEGISLATION CITED : District Court Rules 1973, Part 7 rule 8 Strata Schemes Management Act 1996, ss11, 62 Strata Schemes (Freehold Development) Act 1996, ss.18, 21, 24, 25, 26, 27 Biala Pty Ltd v Mallina Holdings Ltd (1993) 13 WAR 11 Bryan v Maloney (1995) 182 CLR 609 Burland v Earle [1902] AC 83 Cadwallader v Bajco Pty Ltd (2001) 189 ALR 270 Campbell v Kitchen & Sons Ltd and Brisbane Soap Co Ltd (1910) 12 CLR 513 Christopoulos v Angelos (1996) 41 NSWLR 700 Commonwealth Bank of Australia v Hadfield (2001) 53 NSWLR 614 Dynevor Pty Ltd v The Proprietors Centrepoint Building Units Plan No 4327 (Unreported, QCA, 12 May 1995). Foss v Harbottle (1843) 2 Hare 461 Hawkesbury Development Co Ltd v Landmark Finance Pty Ltd (1969) 92 WN (NSW) 199 Houghton v Immer (No 55) Pty Ltd (1997) 44 NSWLR 46 Humphries v The Proprietors "Surfers Palms North" Group Titles Plan 1955 (1994) 179 CLR 597 CASES CITED : Johnson v Gore Wood & Co [2002] 2 AC 1 Konamaneni v Rolls Royce (India) Ltd [2002] 1 WLR 1269 Mesenberg v Cord Industrial Recruiters Pty Ltd (1996) 39 NSWLR 128 Metyor Inc v Queensland Electronic Switching Pty Ltd (2002) 42 ACSR 398 Nominal Defendant v Manning (2000) 50 NSWLR 139 Nurcombe v Nurcombe [1984] BCLC 557 Peninsular and Oriental Steam Navigation Co v Johnson (1938) 60 CLR 189 Prudential Assurance Co Ltd v Newman Industries Ltd (No 2) [1982] Ch 204 Ramage v Waclaw (1988) 12 NSWLR 84 Russell v Wakefield Waterworks Co (1875) LR 5 Eq 474 Scarel Pty Ltd v City Loan & Credit Corp Pty Ltd (1988) 17 FCR 344 Sharpe v San Paulo Railway Co (1873) LR 8 Ch App 597 Travis v Milne; Milne v Milne (1851) 9 Hare 141 United Dominions Corporation Ltd v Brien Pty Ltd (1985) 157 CLR 1 Lesley Anne Carre - Plaintiff PARTIES : Owners Corporation - Strata Plan 53020 - First Defendant Stanley Frederick Johnson - Second Defendant Kaye Irene Johnson - Third Defendant FILE NUMBER(S) : SC 1533/03 COUNSEL : Mr G A Sirtes - Plaintiff Mr R L Butler - Second and Third Defendants SOLICITORS : PricewaterhouseCoopers Legal - Plaintiff Esplins - Second and Third Defendants