APX Projects Pty Limited v The Owners – Strata Plan No. 64025 [2015] NSWSC 1250

Supreme Court New South Wales

Medium Neutral Citation: APX Projects Pty Limited v The Owners – Strata Plan No. 64025 [2015] NSWSC 1250 Hearing dates: 27 April 2015 Date of orders: 01 September 2015 Decision date: 01 September 2015 Jurisdiction: Equity Before: Slattery J Decision: See paragraph [63] of judgment. Catchwords: STRATA TITLE – application by lot owner to bring derivative action at general law on behalf of owners corporation – exceptions to rule in Foss v Harbottle – whether owners corporation acted ultra vires in making payment of legal fees from sinking fund – whether in the interests of justice that the plaintiff bring a derivative action – whether payment by lot owner to owners corporation appropriated to debt in respect of sinking fund levies – principles of appropriations of debts. Legislation Cited: Corporations Act 2001 (Cth), Part 2F.1A Strata Schemes Management Act 1996, ss 11(2), 23, 24, 25, 66, 67, 68, 69, 70, 71, 72, 73, 74, 75, 75A, 76, 123, 125, 138, 181, 184, 207 Civil and Administrative Tribunal Act 2013 (NSW), Schedule 4, s 3 Cases Cited: Caltabiano v Electoral Commission Of Queensland [2010] 1 Qd R 100 Carre v Owners Corporation – SP 53020 (2003) 58 NSWLR 302 Colonial Bank of Australasia v Kerr (1889) 15 VLR 314 Cory Brothers & Company v Owners of Turkish Steamship 'Mecca' [1897] AC 286 Devaynes v Noble ('Clayton's Case') (1816) 1 Mer 572 Eastmark Holdings Ltd v Kabraji (2013) 97 ACSR 161; [2013] NSWSC 1763 Foss v Harbottle (1843) 67 ER 189 Healey v Commonwealth Bank of Australia (NSWCA, 8 December 1998, unreported) Mills v Fowkes (1839) 5 Bing (NC) 455; 132 ER 1174 Parker v Guinness (1910) 27 TLR 129 Re Walsh; Ex parte DCT (1982) 13 ATR 40 Sibbles v Highfern Pty Ltd (1987) 164 CLR 214 The Owners – SP 37762 v Pham [2006] NSWSC 1287 The Owners – SP 50276 v Thoo [2013] NSWCA 270 Wrout v Dawes (1858) 25 Beav 369; 53 ER 678 Texts Cited: E Tyler, P Young and C Croft, Fisher & Lightwood's Law of Mortgage (3rd ed 2013, LexisNexis) Category: Consequential orders (other than Costs) Parties: Plaintiff: APX Projects Pty Limited First Defendant: The Owners – Strata Plan No. 64025 Second Defendant- Bernard Keith White Representation: Counsel: Plaintiff: Dr A.J. Greinke First Defendant: submitting appearance Second Defendant: R.A. Parsons