High Point Terraces [2001] QBCCMCmr 72 (12 February 2001)

RA MeekREFERENCE: 0082-2001

ORDER OF AN ADJUDICATOR

MADE UNDER PART 10 OF CHAPTER 6

BODY CORPORATE AND COMMUNITY MANAGEMENT ACT 1997

Number of Scheme:	3196
Name of Scheme:	High Point Terraces
Address of Scheme:	22 Arwen Street MAROOCHYDORE QLD 4558

TAKE NOTICE that pursuant to an application made under the abovementioned Act by Committee of the Body Corporate


RA MeekI hereby order that the application for an order of an adjudicator authorising the committee of the body corporate to spend funds above the relevant limit for committee spending for this scheme, is dismissed.
STATEMENT OF ADJUDICATOR’S REASONS FOR DECISION - REF 0082-2001

“High Point Terraces” CTS 3196

The applicant, the committee of the Body Corporate for High Point Terraces, has sought an order of an adjudicator under the Body Corporate and Community Management Act 1997 (the Act) that the committee of the body corporate be authorised to spend in excess of its relevant limit for committee spending, on the basis that the spending is required to meet an emergency. Specifically, the order is sought to authorise the committee to spend funds up to a maximum of $1911.80 on remedial work to prevent further damage to the interior of lot 5.

Section 103(1) of the Body Corporate and Community Management (Standard Module) (the module) provides in part as follows -

The committee may only carry out a proposal involving spending above the relevant limit for committee spending for the scheme if ... an adjudicator is satisfied that the spending is required to meet an emergency and authorises it under an order made under the dispute resolution provisions.

The module defines the “relevant limit for committee spending” as an amount worked out by multiplying the number of lots included in the scheme by $100. Given that there are 8 lots in this scheme, then the relevant limit for committee spending is $800. The applicant seeks authorisation to expend up to a maximum of $1911.80 with possible additional costs of $451.

In the application, the applicant states that the expenditure is required to effect remedial works to prevent further water damage to unit 5. The quote indicates that –

It should be noted that water penetration to the upper level of this unit only occurs during periods of heavy rain and unusually high winds. History shows that this unit suffers water damage when the above adverse weather conditions occur.

I doubt that this matter falls into the category of emergency. The above statement is suggestive of a fact that this problem has been known for some time, and there has been a failure by the body corporate to previously attend to this remedial work.

In the circumstances, it is questionable in my view whether the spending sought to be authorised is required to meet an emergency, in accordance with section 103(1)(c) of the module. In any event this question is academic, as section 103(3) provides that –

This section has effect subject to the requirements under this division for spending that is above the relevant limit for major spending.

The relevant limit for major spending is defined as the amount determined by multiplying the number of lots by $200. For this scheme, the limit is $1,600. The amount sought to be authorised is potentially around $2500. Consequently, I have no power to make the order as sought. This application is dismissed. refused n