Community Association DP No 270180 v Arrow Asset Management Pty Ltd & Ors [2007] NSWSC 527

New South Wales Supreme Court

CITATION : Community Association DP No 270180 v Arrow Asset Management Pty Ltd & Ors [2007] NSWSC 527

HEARING DATE(S) : 16/4/07, 17/4/07, 18/4/07, 19/4/07, 24/4/07

JUDGMENT DATE : 30 May 2007

JURISDICTION : Commercial List

JUDGMENT OF : McDougall J at [1]

DECISION : See para [275] of judgment

CATCHWORDS : COMMUNITY SCHEMES – management agreement made during initial period – whether effect of management agreement disclosed in community management statement – whether management agreement ratified at first annual general meeting of community association – whether implied ratification might be sufficient – whether management agreement terminated at end of first annual general meeting – whether community association incurred a debt during the initial period by entering into management agreement – whether community association entitled to recover debt or damages from original proprietor - ESTOPPEL – conventional estoppel – whether community association estopped from asserting that management agreement terminated at end of first annual general meeting – estoppel by deed - where deed of assignment of manager's rights and obligations – whether community association estopped by deed from asserting that management agreement terminated at end of first annual general meeting - EQUITY – fiduciary obligations – whether developer of community scheme is a "promoter" – whether developer owes fiduciary duties to community association – nature and extent of duties – where developer during initial period causes community association to enter into management agreement with third party – where third party pays developer a premium – where management agreement provides for "excessive" remuneration to third party – whether breach of fiduciary duties – whether developer liable to account to community association for premium -