Ocean Sands [2006] QBCCMCmr 109 (10 March 2006)

Last Updated: 19 July 2006

REFERENCE: 0170-2006

ORDER OF AN ADJUDICATOR

MADE UNDER PART 9 OF CHAPTER 6

BODY CORPORATE AND COMMUNITY MANAGEMENT ACT 1997

Number of Scheme:	15879
Name of Scheme:	Ocean Sands
Address of Scheme:	140 Bundall Road, BUNDALL QLD 9726

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

Body Corporate for Ocean Sands CTS 15879

I hereby order that the body corporate committee is authorised to expend up to the sum of $35,671.00 as detailed in the letter dated 9 March 2006 from ARUP Façade Engineering to carry out emergency repairs to the roofing membrane in the courtyard of lot 85. I further order that the said sum of $35,671.00 shall be paid from the sinking fund.

STATEMENT OF ADJUDICATOR’S REASONS FOR DECISION - REF 0170-2006

"Ocean Sands" CTS 15879

ORDERS SOUGHT

The applicant has sought orders of an adjudicator under the Body Corporate and Community Management Act 1997 (the Act) for approval of emergency expenditure to repair the roofing membrane in the courtyard of lot 85 thereby removing a potentially life threatening situation caused by water penetration into the electrical wiring of lot 85 beneath the courtyard.

JURISDICTION

Section 276(1) of the Act 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 the 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)). An adjudicator's order may contain ancillary and consequential provisions the adjudicator considers necessary or appropriate (section 284(1)).

BACKGROUND

The application was forwarded by facsimile transmission at 4.52pm on 9 March 2006. The applicant stated that leaks have become apparent in the courtyard of lot 85 over the last two weeks as a result of heavy rains that have fallen in the Gold Coast area. The applicant provided a detailed report and technical specification dated 3 March 2006 from Arup Façade Engineering, which company then arranged for a quotation for the repair of the roofing membrane. Given the urgency of the matter, the applicant was only able to provide one quotation, dated 6 March 2006.

The applicant also provided two reports from electricians, dated 2 March 2006 and 3 March 2006. Both reports confirmed that the water penetration occurring in lot 85 as a result of the leaks from the courtyard constituted an extreme safety issue which could cause electrocution. In addition, the applicant provided photographs revealing the extent of the water leak into lot 85 below the courtyard.

The applicant stated that there is currently $280,543.65 in the body corporate sinking fund.

DETERMINATION

I am satisfied on all of the material that the present situation is potentially life threatening; that the cost of repairs exceeds the limit for committee (and major) spending; that repairs must be carried out urgently to overcome the risk and that there are sufficient funds available to do so.

I have therefore made necessary orders under section 103(1)(c) of the Body Corporate and Community Management (Standard Module) Regulation 1997 (Standard Module).