James v The Owners – Strata Plan No 11478; The Owners – Strata Plan No 11478 v James [2016] NSWSC 1558

Supreme Court New South Wales

Medium Neutral Citation: James v The Owners – Strata Plan No 11478; The Owners – Strata Plan No 11478 v James [2016] NSWSC 1558 Hearing dates: 16-19, 23-26 May, 28 June and 22 August 2016 Date of orders: 03 November 2016 Decision date: 03 November 2016 Jurisdiction: Equity Before: Darke J Decision: Claims of lot owner dismissed. Owners Corporation entitled to recover contributions to strata levies. Catchwords: REAL PROPERTY – strata title – management and control – strata managing agent appointed to exercise all the functions of an owners corporation – whether strata managing agent owed duty of care to individual lot owners to exercise reasonable care so as to prevent economic or financial loss – whether strata managing agent negligent in carrying on functions of Owners Corporation – whether alleged negligence caused loss to plaintiff

REAL PROPERTY – strata title – management and control – oppression and fraud on the minority – whether scope of powers conferred under Strata Schemes Management Act 1996 (NSW) s 162(1)(a) limited by reasons for appointment – whether powers exercised bona fide for proper purposes – whether exercise of powers of Owners Corporation operated oppressively towards or amounted to fraud on the minority against plaintiff Legislation Cited: Civil Liability Act 2002 (NSW), s 5B Strata Schemes Management Act 1996 (NSW), ss 52, 61, 62, 65A, 75, 76, 78, 79(2), 138(1), 148(1), 149, 153, 162, 177, 183(1) Cases Cited: Brookfield Multiplex Limited v Owners Corporation Strata Plan 61288 (2014) 254 CLR 185; [2014] HCA 36 Caltex Refineries (Qld) Pty Limited v Stavar (2009) 75 NSWLR 649; [2009] NSWCA 258 Dare v Pulham (1982) 148 CLR 658 Houghton v Immer (No 155) Pty Limited (1997) 44 NSWLR 46 James v The Owners Strata Plan 11478 [2014] NSWSC 337 James v The Owners Strata Plan No SP 11478 (No 4) [2012] NSWSC 590 McDonough v Strata Plan No 57504 [2014] NSWSC 1708; (2015) 17 BPR 33,573 Owners – Strata Plan No 43551 v Walter Construction Group Limited (2004) 62 NSWLR 169; [2004] NSWCA 429 Owners Strata Plan 50276 v Thoo [2013] NSWCA 270; (2013) 17 BPR 33,789 Owners Corporation Strata Plan 61288 v Brookfield Multiplex [2012] NSWSC 1219 Ridis v Strata Plan 10308 (2005) 63 NSWLR 449; [2005] NSWCA 246 Tan v The Owners Strata Plan No 22014 [2015] NSWSC 71 The Owners – Strata Plan 5709 v Andrews [2009] NSWCA 189 The Owners – Strata Plan No 61288 v Brookfield Australia Investments Limited (2013) 85 NSWLR 479; [2013] NSWCA 317 The Owners Strata Plan No 57164 v Yau [2016] NSWSC 1056; (2016) 18 BPR 36,095 Thoo v The Owners – Strata Plan 50276 [2011] NSWSC 657 Young v Owners – Strata Plan No 3529 (2001) 54 NSWLR 60; [2001] NSWSC 1135 Category: Principal judgment Parties: 2014/37203: Jennifer Elizabeth James (Plaintiff) The Owners – Strata Plan No 11478 (First Defendant) Robert Anderson (Second Defendant) Advanced Community Management Pty Limited (Third Defendant)