The Owners - Strata Plan 60285 v Bondlake Pty Ltd [2004] NSWSC 1037

Reported Decision : (2005) NSW ConvR 56-114

New South Wales Supreme Court

CITATION : The Owners - Strata Plan 60285 v Bondlake Pty Ltd [2004] NSWSC 1037 HEARING DATE(S) : 8 October 2004 JUDGMENT DATE : 5 November 2004 JURISDICTION: Equity Division JUDGMENT OF : Pearlman AJ DECISION : Declaration that caretaker agreement void

CATCHWORDS : STRATA SCHEME - caretaker agreement - meaning of "incur a debt" - whether debt incurred in initial period without available funds - whether agreement illegal - UNENFORCEABILITY - principles - scope and purpose of statutory prohibition - whether recovery of debt only consequence of illegality - whether unenforceability a legal consequence - public policy LEGISLATION CITED : Strata Schemes Management Act 1996 s 113 Bank of China v Hawkins (1991) 7 ACSR 262 Bans Pty Ltd v Ling and Ors (1995) 16 ACSR 404 Burmic Pty Ltd v Goldview (2003) 2 Qd. R 477 Commissioner of State Taxation (WA) v Pollock (1993) 12 ACSR 217 Fitzgerald v F J Leonhardt Pty Ltd (1997) 189 CLR 215 Hawkins and Ors v Bank of China (1992) 26 NSWLR 562 Hurst and Ors v Vestcorp Ltd (1988) 12 NSWLR 394 Karl Suleman Enterprizes Pty Ltd (in liq) v Babanour (2004) 49 ACSR 612 Laybutt v Amoco Australia Pty Ltd (1974) 132 CLR 57 CASES CITED : Nelson and Anor v Nelson and Ors (1995) 184 CLR 538 Owners - Strata Plan No 51487 v Broadsand Pty Ltd [2002] NSWSC 770 Owners - Strata Plan No 56443 v Regis Towers Real Estate Pty Ltd (2003) 58 NSWLR 78 Powell and Anor v Fryer and Anor (2001) 37 ACSR 589 Re Beckwith; ex p Power and Power (1993) 43 FCR 256 Russell Halpern Nominees Pty Ltd v Martin (1987) WAR 150 Shepherd and Ors v Australia and New Zealand Banking Group Ltd and Anor (1996) 20 ACSR 81 Stammers v Akron Securities Ltd (1997) 24 ACSR 498 Thomas Brown and Sons Ltd v Fazal Deen and Anor (1962) 108 CLR 391 Thomas v Regal West Pty Ltd (12 November 1990, Brownie J, Supreme Court, Commercial Division, unreported) Yango Pastoral Company Pty Ltd and Ors v First Chicago Australia Ltd and Ors (1978) 139 CLR 410 PARTIES : The Owners - Strata Plan 60285 (Plaintiff) Bondlake Pty Ltd (Defendant) FILE NUMBER(S) : SC 1844/03 COUNSEL : P R Whitford SC/ J Lazarus (Plaintiff) J S Wheelhouse SC (Defendant) SOLICITORS : Snelgrove Boyle Neilson (Plaintiff) Deutsch Partners Lawyers Pty Ltd (Defendant)