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Queensland Body Corporate and Community Management Commissioner - Adjudicators Orders |
Last Updated: 30 September 2005
REFERENCE: 0664-2003
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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25202
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Name of Scheme:
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Rainbow Getaway II
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Address of Scheme:
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4 Double Island Drive, RAINBOW BEACH QLD 4581
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TAKE NOTICE that pursuant to an application made under the abovementioned Act by Ross McDonald, the Owner of Lot 28:
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I hereby dismiss the application for an order "that the Body
Corporate draw up the terms and conditions, so that owners (my) pets can be
permitted on the property as was resolved
on Motion 13 AGM 1999".
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STATEMENT OF ADJUDICATOR’S REASONS FOR DECISION - REF
0664-2003
"Rainbow Getaway II" CTS 25202
1. The application
On 9 October 2003, the Applicant
(the Owner of Lot 28) filed a dispute resolution application with the
Commissioner for Body Corporate
and Community Management ("the Commissioner")
under the Body Corporate and Community Management Act 1997 ("the
Act").
The Applicant states that he is seeking the following
outcome:
"That the Body Corporate draw up the terms and conditions, so that owners (my) pets can be permitted on the property as was resolved on Motion 13 AGM 1999."
2. The "Rainbow Getaway II" community titles scheme
Department of Natural Resources,
Mines and Energy records show that the "Rainbow Getaway II" community titles
scheme was created under
a building format plan of subdivision, recorded on 4
December 1997. The scheme consists of 15 lots and common property.
The
first community management statement for "Rainbow Getaway II" was registered on
5 December 1997. The community management statement
indicates that the Body
Corporate and Community Management (Standard Module) Regulation 1997 ("the
Standard Module") applies to the scheme.
3. Administration of the application
As mentioned above, this
application was submitted to the Commissioner on 9 October 2003. On 22 October
2003, and at the request
of the Commissioner, a staff member of this Office
contacted the Applicant and requested further information regarding the
application,
and clarification of the outcome sought in the application. The
Applicant responded to the Commissioner’s request under cover
of a letter
dated 22 October 2003. This letter has been included with the supporting
material accompanying the application.
On 29 October 2003, the
Commissioner provided the Body Corporate with formal notice of the application
via the Body Corporate Secretary
(who is also the Body Corporate Manager). The
Commissioner also invited each owner of a lot included in the scheme to make a
written
submission about the application. On 25 November 2003, the Commissioner
invited the Committee for the Body Corporate to make a written
submission about
the application.
The Caretaking Service Contractors for the Body
Corporate and the Owners of Lot 20 have made written submissions. In accordance
with
section 246 of the Act, the Commissioner provided the Applicant with
copies of the submissions. The Applicant has made a written reply to the
submissions
in a letter dated 12 December 2003.
On 16 January 2004, the
Commissioner made a dispute resolution recommendation that the application
should be the subject of Dispute
Resolution Centre mediation, and referred the
application to a Dispute Resolution Centre of the Department of Justice and
Attorney-General.
In a letter dated 1 March 2004, the Dispute Resolution Centre
advised that a mediation session could not be arranged with the parties,
and as
a result, no mediation was conducted.
On 4 March 2004, the Commissioner
made a supplementary dispute resolution recommendation that the application
should be resolved by
departmental adjudication. The Commissioner has referred
the application to me for determination.
4. Jurisdiction
This
application describes a dispute between the owner of a lot included in a
community titles scheme, and the body corporate for
the scheme. Therefore, the
matter is a "dispute" within the meaning of section 227(1)(b) of the Act,
and may be resolved under the Act’s dispute resolution
provisions.
Section 276(1) of the Act authorises adjudicators to
make just and equitable orders to resolve disputes in community titles schemes,
about-
(a) claimed or anticipated contraventions of the Act or a scheme’s community management statement; or
(b) the exercise of rights or powers, or the performance of duties, under the Act or a scheme’s community management statement; or
(c) claimed or anticipated contractual matters about the engagement of a
person as a body corporate manager or service contractor
for a scheme, or the
authorisation of a person as a letting agent for a scheme.
The
Applicant’s basis for this application seems to be that the Body Corporate
has failed to meet its statutory obligations
by not carrying out a particular
resolution of a general meeting. The resolution in question concerned the Body
Corporate’s
approach to the issue of keeping of animals on scheme land.
It seems to me that the subject matter of this dispute is capable of
being
determined by a departmental adjudicator.
5. Background to the application
The keeping of animals in a
community titles scheme is a matter that is normally regulated by the by-laws
for the Body Corporate.
The community management statement for "Rainbow Getaway
II" includes the following by-law concerning animals:
BY-LAW 11 Keeping of animals
(1) The occupier of a lot must not, without the body corporate’s written approval-
(a) bring an animal onto, or keep an animal on, the lot or the common property;
(b) permit an invitee to bring an animal on to, or keep an animal on, the lot or the common property.
(2) The occupier must obtain the body corporate’s written approval before bringing, or permitting an invitee to bring, an animal onto the lot or common property.
The first community management statement
for the scheme, as recorded on 5 December 1997, is still the current statement
applying to
the scheme. The community management statement, including the above
by-law, has not been altered since that time.
In the supporting grounds
to the application, the Applicant explains that the Body Corporate carried a
motion concerning animals at
an annual general meeting held on 27 February 1999
("the 1999 AGM"). The Applicant has provided an extract from the minutes of the
meeting, which describe Motion 13 in the following terms:
"Motion 13. Approval of Pets (Ordinary Resolution)
Submitted by Owners of Lot 1
Resolved that Owners pets be permitted on the property, subject to terms and conditions acceptable to the Owners.
It was further resolved Mr Stark draw up the terms and conditions
of approval."
The minutes record that the motion was carried with six
votes in favour of the motion, no votes against the motion, and one voter
abstaining from voting on the motion.
It appears from the material that
in accordance with the resolution, the then chairperson of the Body Corporate
(Mr Erich Stark) prepared
draft conditions for the keeping of pets on the scheme
land. These conditions are set out in a facsimile from Mr Stark to the Body
Corporate Manager dated 9 March 1999.
The conditions set out in the
facsimile are quite detailed. While a number of the conditions appear to be
fairly standard (for example,
pets are required to be kept under the control of
their keepers or caretakers), the conditions also contemplate a range of
financial
penalties payable by the owners of pets for failure to comply with the
conditions. While it is not necessary for me to decide the
matter at this time,
it seems unlikely that a body corporate has sufficient authority to impose these
types of penalties on lot owners
and occupiers. For instance, section
180(6) of the Act specifically provides that body corporate by-laws (other
than exclusive use by-laws) "must not impose a monetary liability on the
owner or occupier of a lot included in a community titles scheme".
In
any event, there is nothing in the material before me to indicate that these
conditions were adopted by owners, or that the proposed
conditions have been
redrafted or otherwise reconsidered since 1999.
Apart from issues
surrounding the Body Corporate’s resolution of 27 February 1999, it is
apparent that the Applicant has separately
sought the approval of the Body
Corporate to keep a "foxie cross" dog within his lot. The Applicant has
provided a copy of a letter
dated 30 September 2003, in which the Body Corporate
Manager advises him that the Committee has refused the request.
6. Determination
While
the Applicant has mentioned the refusal of his 2003 request to keep his pet
within his lot in the supporting grounds to the
application, the Applicant has
not sought a specific order on the issue, or provided substantial arguments as
to why the Body Corporate’s
refusal is unreasonable or unlawful in the
circumstances. As a result, I do not intend to consider this issue in the
context of
this application. However, if the Applicant does believe that the
2003 refusal was unreasonable or unlawful, he is entitled to make
a further
dispute resolution application about the issue, supported by a full statement of
reasons.
The main focus of the current application is the Body
Corporate’s resolution concerning Motion 13, as considered and carried
at
the 1999 AGM. In general terms, it seems to me that the Applicant considers
that the Body Corporate has an obligation to carry
out this resolution, which he
believes will facilitate him being able to keep his pet dog within his
lot.
Generally speaking, I agree with the principle that a body corporate
has an obligation to carry out lawful resolutions of the members
made at general
meetings. However, notwithstanding this general principle, I have decided to
dismiss this application for the reasons
outlined below.
Firstly, it
seems to me that Motion 13, as considered at the 1999 AGM, is inconsistent with
the existing by-laws for the Body Corporate.
In broad terms, the existing
by-law requires occupiers to obtain the written approval of the body corporate
prior to bringing an
animal to the scheme land. In my view, the terms of this
by-law clearly indicate that owners are not entitled to keep an animal
in a lot,
or on the common property, without the prior, written approval of the Body
Corporate. It also seems to me that the terms
of the existing by-law
contemplate the body corporate giving individual consideration to the merits of
each request for approval
to keep an animal on the scheme land. While the Body
Corporate has an obligation to apply the by-laws reasonably and fairly, the
terms of the by-law certainly allow for the Body Corporate to refuse an
occupier’s request for approval to keep an animal on
the scheme land,
depending on the circumstances.
In my view, it is entirely reasonable for
a body corporate to adopt suitable guidelines for deciding when a request to
keep an animal
on scheme land will be approved. I also consider that it is
reasonable for a body corporate to impose reasonable conditions on any
approval
to keep an animal within a lot. It seems to me consideration of these matters
will assist a body corporate to make lawful,
fair and reasonable decisions
regarding animals.
However, in my opinion, the terms of Motion 13 reflect
a significantly different approach to the issue of keeping animals on scheme
land than that contemplated by the existing by-law. It seems to me that the
opening statement in Motion 13, "that Owners pets be permitted on the
property", purports to provide owners with a general right to keep their
pets on the scheme land. The intention of the statement appears to
be to remove
the requirement for individual owners to make a specific request for the Body
Corporate’s written approval to
keep their particular pet on the scheme
land, as required by the current by-law. I consider that the terms of Motion 13
go well
beyond establishing guidelines for the application of the existing
by-law, and in fact, are contrary to the existing by-law.
In my view,
motions of bodies corporate at general meetings must be consistent with the Act
and the relevant regulation module, as
well as the existing by-laws for the
scheme. This is supported by the fact that section 47(1)(a) of the
Standard Module requires the person chairing a general meeting of a body
corporate to rule a motion out of order if the motion
(if carried) would
"conflict with the Act, this regulation or the by-laws".
For these
reasons, I do not consider that Motion 13 as carried at the 1999 AGM was valid,
and I would not issue an order requiring
the Body Corporate to carry out the
motion. If the Body Corporate wishes to change its by-law concerning the
keeping of animals,
it should follow the formal procedures set out in the
legislation to do so.
As an aside, I am also concerned about the fact
that the motion in question was considered and carried over 5 years ago. It
seems
to me that if an owner wishes to compel a Body Corporate to carry out a
resolution, the Owner should take formal steps to do so within
a reasonable
time. While I note that the Applicant appears to have raised the issue with the
Body Corporate Manager on a number
of occasions, I do consider that the issue
should have been formally resolved some time ago. As all parties would be
aware, membership
of bodies corporate can change over time, and current owners
may have different views on matters affecting the body corporate than
previous
lot owners. Generally, I do not consider that it would be just and equitable to
impose a historic decision of a body corporate
on the current members when
minimal efforts have been made to carry out the decision for some 5
years.
For the reasons outlined above, I do not consider that an order
compelling the Body Corporate to carry out Motion 13 as carried by
the Body
Corporate at the 1999 AGM is warranted, and I have dismissed the
application.
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URL: http://www.austlii.edu.au/au/cases/qld/QBCCMCmr/2004/157.html