Eastmark Holdings Pty Ltd v Kabraji [2013] NSWSC 1763

Supreme Court New South Wales

Medium Neutral Citation: Eastmark Holdings Pty Ltd v Kabraji [2013] NSWSC 1763 Hearing dates: 14, 16 & 17 October 2013 Decision date: 29 November 2013 Jurisdiction: Equity Division Before: Darke J Decision: (1) The proceedings are dismissed. (2) The plaintiff is to pay the costs of each defendant. Catchwords: CORPORATIONS - owners corporation of strata scheme - lot owner seeks to bring derivative action - rule in Foss v Harbottle - exceptions - whether in interests of justice to permit lot owner to sue

PROCEDURE - civil - parties - standing to sue - owners corporation of strata scheme - lot owner seeks to bring derivative action - rule in Foss v Harbottle - whether in the interests of justice to permit lot owner to sue

REAL PROPERTY - strata title - owners corporation - executive committee of owners corporation - duties of members of executive committee Legislation Cited: Corporations Act 2001 (Cth) Interpretation Act 1987 Strata Scheme (Freehold Development) Act 1973 Strata Schemes Management Act 1996 Strata Schemes Management Regulation 2010 Cases Cited: Australian Coal and Shale Employees' Federation v Smith (1937) 38 SR (NSW) 48 Barrett v Duckett (1996) 14 ACLC 3101 Biala Pty Ltd v Mallina Holdings Ltd (1993) 13 WAR 11 Carre v Owners Corporation - Strata Plan 53020 (2003) 58 NSWLR 302; [2003] NSWSC 397 Clay v Clay (2001) 202 CLR 410; [201] HCA 9 Community Association DP No 270180 v Arrow Asset Management Pty Ltd [2007] NSWSC 527 Cope v Butcher (1996) 20 ACSR 37 Eastmark Holdings Pty Ltd v Kabraji [2012] NSWSC 802 Foss v Harbottle (1843) 2 Hare 461; 67 ER 189 Re President's Club Ltd [2012] QSC 364 Re Steel (1968) 88 WN Pt 1 467 South Johnstone Mill Ltd v Dennis (2007) 163 FCR 343; [2007] FCA 1448 Whitlam v ASIC (2003) 57 NSWLR 559; [2003] NSWCA 183 Category: Principal judgment Parties: Eastmark Holdings Pty Ltd (Plaintiff) Eddie Kabraji (First Defendant) Hendersenhayes Pty Ltd (Second Defendant) The Owners - SP 74602 (Third Defendant) Kris Bruckner (Fourth Defendant) Representation: Counsel: DR Pritchard SC with B Oliak (Plaintiff) NC Hutley SC with DFC Thomas (First and Second Defendants) SG Finch SC with KC Morgan (Third Defendant) CRC Newlinds SC with A Horvath (Fourth Defendant) Solicitors: Swaab Attorneys (Plaintiff) Henry Davis York (First and Second Defendants) TressCox Lawyers (Third Defendant) Norton Rose Fulbright Australia (Fourth Defendant) File Number(s): 2011/328524 Publication restriction: Nil