Glencoe [2003] QBCCMCmr 361 (3 February 2003)

Last Updated: 7 September 2007

C G YOUNGREFERENCE: 0072-2003

ORDER OF AN ADJUDICATOR

MADE UNDER PART 10 OF CHAPTER 6

BODY CORPORATE AND COMMUNITY MANAGEMENT ACT 1997

Number of Scheme:	12830
Name of Scheme:	Glencoe
Address of Scheme:	87 Ellen Street, WOODY POINT QLD 4019

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

I hereby order that for emergency purposes the body corporate committee is authorised to spend above the regulatory relevant limit up to the amount of $5,170 (five thousand one hundred and seventy dollars) for the engagement Dolphin Plumbing, c/- Mark & Debra Duane 12 Liberty Court, Scarborough Qld 4020 (PO Box 268, Margate) to carry out the work specified in his tender of 30 January 2003, namely the installation of new plumbing in Lot 5 and the replacement of damaged vanity unit, laundry tub and tiling with similarly valued items, in consequence of a burst water pipe in the floor or wall area of the lot.

I further order that the body corporate, with all assistance and cooperation of the owner of Lot 5, must pursue the claim lodged against the body corporate insurer for the above work and replacement of items, and the proceeds of any successful claim must be credited to the body corporate funds in reimbursement of the above expenditure. C G YOUNGC G YOUNG 2n
STATEMENT OF ADJUDICATOR’S REASONS FOR DECISION - REF 0072-2003

"Glencoe" CTS 12830

The applicant body corporate has sought an order of an adjudicator under the Body Corporate and Community Management Act 1997 ("the Act") that the body corporate committee be authorised to spend in excess of its relevant limit under the legislation, on the basis that the spending is required to meet an emergency.

Section 103(1)(c) of the Body Corporate and Community Management (Standard Module) Regulation 1997 ("the Standard Module") states -

"103(1). Spending by committee.

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 Dictionary Schedule to the Standard Module defines the "relevant limit for committee spending" as an amount worked out by multiplying the number of lots in the scheme by $100. Given that there are 7 lots in this scheme, the relevant limit for committee spending is therefore only $700 in the one instance. The applicant committee seeks authorisation to expend moneys of up to $5,170.

The body corporate has attached to its application a copy of an inspection report, and repair quote, relating to the flooding of water in Lot 5. The report states that the pipe is embedded in the slab and has burst, either in the slab or in the wall duct. In either case, the pipe being an item of utility infrastructure, section 21 of the Act provides that the pipe is part of the common property and therefore the duty of the body corporate to maintain under section 109 of the Standard Module regulations. The consequential damage, and damage necessarily caused in the rectification work, to the vanity unit, laundry tub and tiling is $5,170 in total.

Four of the seven owners have had notice of the situation and the damage, and have given their approval of the repairs, even though, as stated, it is a body corporate responsibility in any case.

The body corporate has submitted a claim to its insurer but cannot wait for the claim to be investigated and the insurer’s decision made. This order will enable the work to be commenced immediately without any decision from the insurer. The body corporate may only need to pay a preliminary amount to the plumber, if anything, and the insurance claim may be paid before the body corporate has to pay the balance (or all of the amount).

In the circumstances I am satisfied under section 103(1)(c) of the Standard Module, the spending authority is necessary to meet an emergency situation. I have made an appropriate order to accommodate the future settlement of the insurance claim, without delaying the repairs.

In the circumstances, it is not intended to invite any submissions regarding this matter, or to make a further order, since this decision, though an interim one as sought by the applicant, is final in its determination of this matter.