Crown Towers [2006] QBCCMCmr 269 (29 May 2006)

Last Updated: 19 December 2006

REFERENCE: 0362-2006

INTERIM ORDER OF AN ADJUDICATOR

MADE UNDER PART 9 OF CHAPTER 6

BODY CORPORATE AND COMMUNITY MANAGEMENT ACT 1997

Number of Scheme:	24386
Name of Scheme:	Crown Towers
Address of Scheme:	5 - 19 Palm Avenue SURFERS PARADISE QLD 4217

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

Anthony Gribben, the Owner(s) of lot 191

I hereby order that voting on the appointment of a pool contractor may proceed at the extraordinary general meeting today but that the body corporate must not enter into any formal contract with the preferred contractor for the time being. This is an interim order and will remain in effect for a period of not longer than two months. It is the responsibility of the applicants to apply to extend this order if no final determination has been made within that period. This order will automatically lapse upon a final order being made or this application being withdrawn.

STATEMENT OF ADJUDICATOR’S REASONS FOR DECISION - REF 0362-2006

"Crown Towers" CTS 24386

Interim Application

Crown Towers Community Titles Scheme (Crown Towers) is a 298 lot scheme under the Body Corporate and Community Management Act (Act) and the Act’s Accommodation Module Regulation (Accommodation Module). Lots are predominately for letting purposes, including holiday letting.

This is an application for interim orders. It arises out of an application by Anthony Gribben, an owner of lot 191 (applicant) seeking orders against the body corporate for Crown Towers (respondent).

The applicant says that the body corporate will be considering a motion to appoint a new pool contractor at its extraordinary general meeting today. However, he says that this meeting fails to include a motion he submitted proposing to ratify a contract with the existing pool contractor. The applicant seeks an order to have the extraordinary general meeting cancelled and a new meeting called at which owners will also be given the opportunity to consider his motion.

Decision

An interim order will not be granted unless is it necessary due to the nature or urgency of the circumstances to which the application relates (Act, 279). Further, any orders granted must be just and equitable in the circumstances (Act, 276).

The applicant has raised a serious legal question regarding why a motion he submitted has not been included on the agenda for today’s meeting. Generally speaking, a motion submitted by a member of the body corporate must be included on the agenda for the next general meeting on which it is practicable to include the motion (Accommodation Module, 39). Obviously if owners vote to appoint a new pool contractor and the body corporate enters into a new agreement it will be difficult for owners to have an opportunity to properly consider the applicant’s motion. On the other hand, it may not be just and equitable to stop the meeting in the circumstances. In particular, it is not apparent from the material that the contractor in question supports the proposed ratification as the contractor has submitted its own tender for pool care from 1 August 2006.

The meeting is to be held today and the committee and owners have not been given an opportunity to make submissions on the orders sought in the present application. However, the committee explanatory schedule enclosed with the application indicates that the current contractor arrangements expire on 31 July 2005. In the circumstances, I consider it to be just and equitable to grant an interim order for a short period of time to prevent the body corporate entering into any new pool contract. This will give owners an opportunity to make submissions in respect of the proposed appointment and whether ratification as proposed by the applicant should be preferred to a new engagement.

Ideally, this final determination will be made within the next two months so that final orders can be made prior to the existing pool cleaning contracts expiring.