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Queensland Body Corporate and Community Management Commissioner - Adjudicators Orders |
Last Updated: 17 May 2005
REFERENCE: 0192-2003
ORDER OF AN ADJUDICATOR
MADE UNDER
PART 9 OF CHAPTER 6
BODY CORPORATE AND COMMUNITY
MANAGEMENT ACT 1997
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Number of Scheme:
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19671
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Name of Scheme:
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Kookaburra Park Eco Village
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Address of Scheme:
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M/S 368 GIN GIN QLD 4671
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TAKE NOTICE that pursuant to an application made under the abovementioned Act by Rudolf ONDRICH, a co-owner of Lot 73,
We seek the Order that the concrete slab will be done in a time limit, no longer then 3 (three) months from receiving an order of an Adjudicator OR the time limit which the Adjudicator finds appropriate for this project That the landscaping of the project area to stop further soil erosion of the slopes will be done in a time-limit, no longer then 3 (three) months from receiving an Order of the Adjudicator OR the time-limit which the Adjudicator finds appropriate for this project. is dismissed.
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STATEMENT OF ADJUDICATOR’S REASONS FOR DECISION - REF
0192-2003
"Kookaburra Park Eco Village" CTS
19671
The applicant, Rudolf Ondrich of Lot 73, has sought the following order
of an adjudicator under the Body Corporate and Community Management Act
1997 ("the Act") -
"We seek the Order that the concrete slab will be done in a time limit, no longer then 3 (three) months from receiving an order of an Adjudicator OR the time limit which the Adjudicator finds appropriate for this project That the landscaping of the project area to stop further soil erosion of the slopes will be done in a time-limit, no longer then 3 (three) months from receiving an Order of the Adjudicator OR the time-limit which the Adjudicator finds appropriate for this project.
(Proposer Mr J Strich, joint owner Lot 74. Concrete slab – motion 15 of the Extraordinary General Meeting 20.5.01. Motion read: That a 40 x 20m of concrete slab be laid on common land at the corner of Elzeards Way and Oxhill Drive, to be used as a multi-functional court)"
JURISDICTION:
This is a dispute
between an owner (the applicant Ondrich) and another owner (the respondent
Joseph Patrick STRITCH, a co-owner of
Lot 74), concerning the delay in the
laying of a concrete slab on common property for recreational use as a court by
children and
others, pursuant to a resolution of the body corporate in general
meeting. This is a matter which falls within the disputes resolution
provisions
of the legislation (see sections 227, 228 and 276, and Schedule 5, of the Act).
General powers of an Adjudicator in making an order:
Section
276(1) provides that an adjudicator may make an order that is just and
equitable in the circumstances (including a declaratory order) to resolve a
dispute, in the context of a community titles scheme, about –
a) a claimed or anticipated contravention of the Act or the community management statement; or b) the exercise of rights or powers, or the performance of duties, under this Act or the community management statement; or c) a claimed or anticipated contractual matter about – (i) the engagement of a person as a body corporate manager or service contractor for a community titles scheme; or (ii) the authorisation of a person as a letting agent for a community titles scheme.
An order may require a person to act, or
prohibit a person from acting, in a way stated in the order (section 276(2) of
the Act).
An adjudicator’s order may contain ancillary or consequential
provisions the adjudicator considers necessary or appropriate
(section 284(1) of
the Act).
APPLICATION AND SUBMISSIONS:
Under section 243 of
the Act, a copy of the application was provided to the respondent Stritch, the
body corporate (committee) and to all other owners,
with an
invitation for each
to make a submission on the dispute. The respondent, the committee and an owner
each made a written
submission
to the application. The applicant Ondrich viewed
the submissions and subsequently lodged a written reply (see sections 246 and
244 of the Act respectively).
The brief facts of the matter are as
follows. At an extraordinary general meeting held on 20 May 2001, the following
Resolution 15
was passed on a vote of 25:12 –
"That a 40m x 20m slab of concrete be laid on common land at the corner of Elzeards Way and Oxhill Drive, to be used as a multi-functional court."
This resolution has never been rescinded, nor has the applicant
put a motion to that effect despite his objection to the project (the
original
resolution shows that he objected from the outset).
The applicant wants a
time limit to be put on the laying of the slab, and on the landscaping of the
immediate area to prevent further
soil erosion, stating that the area has been
excavated but nothing further done (further work has since been carried out
–
see later comments).
The committee submits that the motion has no
time frame nor was one ever discussed. The committee takes issue with the
applicant
on two counts –
• for not having made a proposal or enquiry to the Project Manager (Stritch) for the slab project or the body corporate committee regarding a time frame for the slab, before making an application in the matter.
• for not having raised his concerns about erosion with either Stitch or the committee before making an application.
Stritch submits
that, since the application was lodged, the ground has been levelled and the
surroundings landscaped with trees and grasses. He further submits that the
slab will be laid when sufficient money is available to fund it, on the basis
that, This project has been and will continue being paid with voluntary
donations and money collected in community activities organised
for that
purpose.
In his reply to the committee’s submission, the
applicant Ondrich, states that if it was the case that he was wrong in making
application without first approaching Stitch or the committee, then the
department (presumably a reference the Office of the Commissioner for
Body Corporate and Community Management) would have required him to make
those
approaches first, but by accepting our application the department find
nothing wrong with our handling of the matter.
In response to
Stritch, the applicant appears to say that the project requires the professional
advice of either the Kolan Shire Council
or a landscaper. He has included
copies of letters to the Shire Mayor, Eddie Stone, and the Council engineer,
Allen Christensen,
inviting them to visit the scheme and asking that a Council
landscaping expert ("landscaper") be provided to inspect and report on
the
landscaping needs of the site.
DETERMINATION:
"Kookaburra
Park Eco Village" was registered as a group titles plan (now termed a
standard format plan) on 30 March 1995, and comprises 74 lots. It is
regulated by the Body Corporate and Community Management (Standard Module)
Regulation 1997 ("the Standard Module").
Mediation:
The initial case management decision by the
Commissioner as the most appropriate means of resolving this matter, was to
refer the
application to the Dispute Resolution Centre of the Department of
Justice and Attorney-General for mediation. I do not know the
grounds on which
this case management decision was made, however I suspect that it was based on
both the nature of the dispute (on
the face of it, one of timing rather than
applying the law) and the past history of disputes in "Kookaburra Park Eco
Village" in
general and those initiated by the applicant Ondrich in
particular.
In explanation of this latter point, there have been 26
applications lodged for this scheme since 1 January 2000 where 5 or less would
be normally expected; of these, 9 have been submitted by Ondrich (either alone
or with his co-owner wife) and only one of the 7 determined
so far has not been
dismissed.
The mediation took place between Ondrich and Stritch on 25
July 2003 and a "partial agreement" was reached. Both parties consented
to the terms of settlement being supplied to this Office, and Ondrich determined
not to withdraw
his application. The file was returned to this office for
determination by departmental adjudication, as foreshadowed in this
Office’s
letter to Ondrich and other parties in the initial case
management advice letter of 15 May 2003.
I have read the terms of the
settlement which, in brief, envisages a Shire Council landscaper attending a
meeting of interested owners
to give advice on landscaping the relevant area.
While the partial agreement has no effect whatever on my determination of this
dispute, there are terms I find somewhat puzzling –
• Does Kolan Shire Council provide landscape advice to residents in such circumstances?
• As the matter involves common property which is wholly administered and controlled by the body corporate (see sections 94 and 152 of the Act), why would an owner rather than the committee invite a landscape adviser onto the scheme in regard to a community project?
• Did Stritch have the authority of the committee to act on its behalf in committing the body corporate to arranging invitations to owners to a meeting with a landscaper?
• Why would the committee, which acts on behalf of the body corporate, write to Ondrich informing him of the numbers attending a meeting on the scheme?
Given the applicant’s decision not to withdraw
the application, I am not sure whether the agreement has been referred back to
this Office for an interim consent order to be made incorporating the settlement
terms (see section 276(5) of the Act), or for the
application to be determined
after the above events have taken place or failed, or perhaps despite them.
Regardless
of the reason,
I intend to determine the application on the facts
before me.
Despite my above comments regarding the settlement terms,
it seems to me that the above sequence of events can proceed, assuming the
Council is willing to provide a landscaper and the committee agrees to the
process. In determining this application, my order is
no different to what it
would otherwise have been had the mediation not taken place at all and the
partial agreement not entered
into. This does not mean that I regard the
mediated settlement as being of no use - if the meeting takes place and the
landscaping
decided upon, that is a good outcome – but it does not alter
my view of the application which follows.
Firstly, I am in total
agreement with the committee’s comments that the applicant should have
raised his concerns with them
on both issues, namely the completion and the
landscaping, before making application and treating each as a dispute. Without
having
first approached the committee, there are two consequences: his concerns
are not really a dispute as the matters may have been resolved
to his
satisfaction; and the body corporate has been put to the expense of distributing
copies of the application to owners in accordance
with the instructions of this
office (see section 243 of the Act), meeting and making a response to the
application. The propensity
of the applicant to lodge applications without
having first approached
the body corporate on a matter, has been evident in
previous
applications of the applicant, along with applications of no substance,
and this practice and its adverse outcomes for the body corporate
and other
owners in terms of inconvenience, cost and plain nuisance,
has been commented on
by I and other adjudicators in respect
to past applications.
Secondly,
the resolution clearly sets no time frame for completion and it is dependent on
funds being available from the sources spoken
of by Stritch, namely donations
and specific fund-raising events. The applicant cannot have been unaware of the
method of funding.
In the reasons to my Order 641-2002 issued earlier this
year, I had to deal briefly with this project, and at page 4 of those reasons,
I
referred to the relevant area as the "children’s area" and both the
nature and funding of this proposed children’s facility was general
knowledge. It follows that the timing of
when the project was to be completed,
depended on fundraising efforts in the community – it was never a project
to be funded
out of body corporate funds. While the legislation provides that a
committee must implement the decisions of the body corporate,
that duty
implicitly includes a consideration of the terms and circumstances of the
resolution, which in this instance includes that
it is a community and not a
body corporate funded project, and that completion is directly related to
fundraising (see section 101(2) of the Act). There is the related matter of
having the area landscaped to avoid soil erosion, and though the applicant has
referred
to further
such erosion, the Project Manager Stritch says that there
was only minor erosion in February by unusual heavy rain...almost half of the
annual average for the region. To avoid any future erosion more
grass is going
to be sown. Even the owner whose submission is stridently in support of the
applicant does not refer to any erosion problem. It seems to me that
the
erosion was an unexpected result of unusual rain but in any case was not major
and was remedied in the soil extraction and levelling
process. The site is now
stable.
Additionally, the applicant, having objected to the project at
the outset (see minutes for original resolution), is now accusing the
body
corporate of being tardy in not completing a matter he opposes! This, and
previous applications, gives the appearance that
Ondrich wishes to confront the
body corporate committee (or individuals) on any matter where he believes they
have not acted strictly
in accordance with the law, no matter how trivial or
inconsequential the matter may be, or indeed whether or not he has a direct
interest and concern in outcome.
In summary, the
resolution contains no time frame and because of the nature of the resolution (a
self-funded community project), which
really only sought permission of the body
corporate to happen and was never meant to be a body corporate funded project, I
do not
intend to impose one.
Accordingly, for the foregoing reasons I
have dismissed the application.
In regards to the mediated settlement,
that will be a matter for the parties to pursue as they choose.
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