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Queensland Body Corporate and Community Management Commissioner - Adjudicators Orders |
Last Updated: 27 March 2007
REFERENCE: 0798-2006
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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24368
|
|
Name of Scheme:
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No. 9 Port Douglas Road
|
|
Address of Scheme:
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9 Port Douglas Road PORT DOUGLAS QLD 4871
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TAKE NOTICE that pursuant to an application made under the abovementioned Act by
Stainlay, Tecelec Qld Pty Ltd, Forsyth, & Ewing, the Owner(s) of lots
17, 10, 5 and 14 respectively
|
I hereby order that the application for orders, including to
invalidate resolutions to accept quotations for various roofing works, is
dismissed.
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STATEMENT OF ADJUDICATOR’S REASONS FOR DECISION - REF
0798-2006
"No. 9 Port Douglas Road" CTS 24368
Application
No. 9 Port Douglas Road Community Titles Scheme (No. 9 Port Douglas
Road) is an 18 lot scheme under the Body Corporate and Community
Management Act (Act) and the Act’s Accommodation Module
Regulation (Accommodation Module).
This is an application by
Maxwell Stainlay, Tecelec (Qld) Pty Ltd, Myles Forsyth, and Timothy Ewing,
owners of lots 17, 10, 5 and
14 respectively (applicants).
Background
No. 9 Port Douglas Road is described as a warehouse/office/residence
converted to an 18 unit complex. Lot boundaries are designated
under a
building units plan (now known as a building format plan).
Photographs show that the front section of the top level of the building
includes a large open deck area and the back section has
metal roofing. It is
common ground that water proofing measures in the front section of the building
are lacking or have failed
resulting in large quantities of water entering the
building. Water also enters the building from the back section and it is common
ground that the metal roofing and guttering in that section requires
work.
At a general meeting on 28 April 2006 owners were given an
opportunity to vote on alternative options to "repair/replace the roof".
The alternatives were:
1. To repair the roof by replacing the waterproof membrane, pouring a topping slab, retiling the whole roof area, and capping all walls; 2. To build a roof over the front section only including capping and retiling, and repairing of the rear of the roof; 3. To install a new roof as per drawings and specifications provided by Greg Skyring. These drawings showed a new roof covering the whole building and new block work up to the height of the roof. 4. To install a roof over the front section only incorporating the open area of unit 16, the open area above units 7, 8, 9, and 10 plus carrying out repair works on the remaining roof section and wall capping as recommended by ARUP Engineers; 5. To perform the rectification completely in accordance with the specifications of ARUP Engineers. These specifications covered waterproofing of the external walls, the roof deck expansion joint, the existing roof membrane, the building services roof penetrations and the tiled terrace; and 6. To perform the rectification according to a quotation from Into Constructions for $251,406. The material provided indicates that this quotation was largely in accordance with waterproofing and membrane works proposed by ARUP Engineers but with some differences included reduced use of High Build Acrylic Membrane, an alternative wall capping, and no mineral sheet membrane or corner fillets for waterproofing of the terrace and expansion joint.
Owners voted unanimously in favour of the
primary motion to "repair/replace the roof" and the most popular
alternative was the fourth option, being to roof the front section, carry out
repair works on the remaining roof,
and perform wall capping.
Two of
the applicants then lodged an application challenging this result. The main
submission was that all the alternatives to repair
or replace the roof should
not have been combined in one motion as some were for repairs only while others
were for repairs and improvements
combined. This application was dismissed on
grounds including that the proposals involving a metal roof over the building
were genuine
alternatives to the proposals involving fixing or installing
waterproofing membranes and the applicants did not establish the real
purpose of
these proposals went significantly beyond maintenance in the form of rectifying
an existing defect with the
building.[1] This decision was then
appealed with the District Court recently accepting arguments that at least some
of the alternatives were
improvements and should have been decided by special
resolution but confirming that the votes cast did in fact meet the requirements
of a special resolution.[2] In this
context, Justice White was of the view that the voting paper was defective in
that it specified that the motion was to be
decided by ordinary resolution
instead of special resolution but this was an irregularity of the most technical
nature in the context
of the case and it was just and equitable to make an order
confirming the validity of the resolution.
In the meantime, at an
extraordinary general meeting on 15 September 2006, owners had passed five
resolutions purporting to accept
quotations for work related to roofing and
painting the building. In the present application, the applicants seek to have
these
five subsequent resolutions declared void. These five resolutions
are:
• Resolution 3 - To accept quotations from Kenmac Constructions for the new roof and Mossman Refrigeration Services for relocation of the air conditioners; • Resolution 4 - To accept a quotation from GND Cairns Painters to paint the building; • Resolution 5 - To accept a quotation from Darren Barnes for additional roof repairs to the western roof being wall capping, box gutter and roof repairs; • Resolution 6 - To accept a quotation from Into Constructions to replace laser light roofing; and • Resolution 7 - To accept a quotation from Into Constructions for air conditioner repairs.
Submissions
Initial submissions from the applicants were to the effect that
• Resolution 3 described as "Roof Repairs" should be void as it involves the building of "a new metal roof over the terrace" and amounts to a structural addition or improvement as opposed to repair or maintenance. It is therefore submitted that this needed to be passed by special resolution rather than ordinary resolution;
• Resolution 4 described as "Painting of Building" not only relates to the painting of existing structures and areas but also the painting of new walls to be constructed on top of the existing front section of the building. The painting therefore amounts to an improvement rather than maintenance;
• Resolution 5 described as "Additional Roof Repairs to Western Roof", resolution 6 described as "Replacement of Laser Light Roofing", and resolution 7 described as "Air-Conditioner Repairs" are all part of a series of associated repairs and or improvements to the western roof area and should be grouped as a whole project or separated into repairs and improvements. Resolution 5 includes the provision of non existent wall capping so should be a special resolution for improvements. Resolutions 6 and 7 are associated improvements;
• Some additional information was distributed two days before the meeting and includes newly constructed balconies as additions for the exclusive benefit of lot 16 without notification or consent of grant; and
• The above resolutions are not reasonably necessary for the health, safety or security of persons as a more viable option is available as submitted by the previous committee for the extraordinary general meeting of 28 April 2006. Further, the ability of the present committee to act honestly, fairly and equally represent all owners is questioned and the appointment of an administrator to perform the functions of the committee is requested.
Further submissions in support of the application have also
been made, including that:
• There are other issues that need to be addressed prior to repairs on the western roof;
• The construction of additional balconies would require a resolution without dissent;
• The special resolution purporting to give permission to construct the balconies seems to make the body corporate liable for the costs and does not specify that common area will be used;
• Water ingress should have been addressed for all balconies by installing additional splitters on either side of the box gutters to stop overflow of water into the ceiling space of balconies below in the event of excessive rain. Even installing a roof at a higher level will not stop the rain blowing onto the floor level and installing a floor over the existing balcony roofs will render the existing box guttering useless; and
• Body Corporate Services has issued an invoice for levies associated with all the proposed building works which are still under adjudication. The only reason for this appears to be to place owners who question payment in an unfinancial position without a vote at future meetings.
The
committee initially made submissions to the effect that:
• The application is a complete duplication of a previous application that was dismissed by the adjudicator but was since appealed to the District Court;
• The persons making this present application were all former committee members and were, at the April 2006 annual general meeting, removed from those positions by the majority of owners for failing to rectify the building’s water ingress (amongst other things);
• The motion put forward by these former committee members at the April 2006 annual general meeting was by way of an ordinary resolution with alternatives and the vote in favour of this motion was unanimous with the vote for the alternatives being determined by a simple majority which we understand is in accordance with the Act;
• The committee is astounded by the objections raised to the quotes for the extraordinary general meeting on 15 September 2006 when the quotes were based on the scope of works and on preliminary plans that were prepared by the applicants to this dispute. These same former committee members had spent over $10,000 on plans and consultants but did not produce any quotations for a roof structure as mandated by the owners at the previous annual general meeting in March 2005 and as recommended by the body corporate’s consulting engineers; and
• The application is even more ludicrous and contradictory given that the works and repairs in question include repairs directly above the units of some of the applicants, some of the applicants previously requested that the Commissioner authorise the appointment of a builder to rectify works over these lots, but in this application they are asking the Commissioner to stop any of these works proceeding.
Further submissions opposing the
application have also been made, including that:
• It has been recommended by experts that the only way to stop the roof from leaking is to completely re roof the building. So to dispute the obvious seems ridiculous;
• All owners were provided with detailed information to make their vote;
• The original plans for the new roof were produced by Greg Skyring in consultation with ARUP engineers. These were distributed to owners in December 2005 and accepted in principal by owners at a general meeting on 28 April 2006 subject to owners voting to only roof the front section and carry out repairs to the western section that has an existing roof;
• It was always intended to relocate the air conditioners because enclosing the air conditioners under the roof would be inappropriate for their ventilation and operational performance;
• The roof structures over balcony areas are necessary to alleviate water ingress;
• The original plans for roof structures over the balconies included a roof at a height of one metre that would have blocked the opening. However, at an extraordinary general meeting on 29 August 2003 unit 16 had been given permission to place new tiled patio areas in this position and erect wrought iron balustrade to match balconies;
Decision
Maintenance or improvement
General concepts
A body corporate must administer, manage and control the common property and
body corporate assets reasonably and for the benefit
of lot owners (Act,
152). The regulation modules place obligations on the body corporate in
respect of maintenance. Significant maintenance generally needs
to be approved
by an ordinary resolution of owners in general meeting.
The regulation
modules may also make provision for the circumstances under which improvements
may be made, including who is authorised
to make improvements (Act, 159).
Under the present regulations, significant improvements normally need to be
authorised by a special resolution of owners in general
meeting.
On a
broad view of "maintenance" a body corporate should be allowed a
reasonably wide discretion in the means by which it performs its maintenance
obligations[3] and any repair can
invoke an element of improvement but still remain within the general concept of
repair.[4] For example, the view has
been taken that quite different solutions or methods of repair might be
categorised as "maintenance" if the principal intention of the proposal
is to return something to a useable condition or state of
repair.[5] For example, replacement
of a balcony balustrade with a safer type of balustrade can constitute
"maintenance",[6] as can
redecorating common property lift landings and replacing the floor
coverings.[7]
A narrow view
put forward by the applicants is to the effect that any "change" amounts
to an "improvement" even if that change is for the purpose of
maintenance. I note that the definition of "improvement" in the Act
includes both structural and non-structural changes and that the definition of
"change" in the Acts Interpretation Act includes change by addition,
exception, omission or substitution. If these definitions are applied in
relation to section 112 of
the Accommodation Module then all of the alternatives
put forward for repairing the roof for No. 9 Port Douglas would constitute
an
"improvement". For example, even acceptance of the quotation from Into
Constructions would have required a special resolution due to, among other
things, use of a more modern type of membrane and the addition of wall
capping.
On balance, I prefer a broad view of "maintenance" that
does not classify a change as an "improvement" if the purpose of the
proposal is maintenance of existing structures or things, even if the work
involves some change or the replacement
of something with a modern equivalent.
The Act contains a very wide definition of "improvements" that
effectively states that the regulation module may include provisions about the
erection of a building, a structural change and
a non-structural change. The
regulation modules then specifically provide for an authorisation process for
improvements to common
property but do not contain their own definition of
"improvements". Normally, words in regulations have the same meaning as
they have, from time to time, in the Act under which the regulation is
made
(Statutory Instruments Act 1992, 37). However, this rule may be
displaced by a contrary intention (Statutory Instruments Act 1992,
4).
The purpose of the relevant provisions in the regulations appears
to be only to provide a means by which owners can vote to authorise
changes made
for the purpose of improving the use of scheme land rather than provide an
additional hurdle for authorisation of changes
made in order to meet the
maintenance obligations imposed by other provisions of the legislation. It
would seem absurd if basic
maintenance like adding sealant around a window
frame, trimming common property trees or repair of an item by replacement with
modern
substitute would require the proposed work to go though a special
authorisation process as an "improvement".
The word
"improvements" seems to be used in the regulation modules according to
its usual legal meaning of "something to enhance the value of land or make
the use of land more efficient"[8]
as opposed to work comprised of a change designed to keep existing
improvements in good repair. This usual legal meaning of the word
"improvements" also fits better with the requirements in the regulations
that the original owner give the body corporate plans of all buildings and
improvements showing related utility infrastructure, provisions relating to
insurance of improvements, and the requirement for the
body corporate to keep a
register of authorised improvements made by an owner.
Roofing an improvement to the extent it relates to balconies
I have taken a broad view of "maintenance" as being work where the
purpose of the proposal is maintenance of existing structures and have read
"improvements" to refer to structures, items or work where the purpose is
to improve the value or use of the
land.[9]
A new metal roof as an
alternative to a roofing membrane can fall within the concept of maintenance
where the membrane has failed
in the past and the body corporate has been
advised that building a new metal roof is the best way to stop rain water
pouring into
the lots below. However, to the extent that proposed roofing is
not designed to protect the areas with the failing membrane but
is above areas
where an owner is proposing to add new balconies, the roofing is clearly an
"improvement".
This is based on a previous decision where the
view was expressed that replacement of a safety balustrade with a safer type of
balustrade
constitutes "maintenance" but the erection of balustrades on
an area where none previously existed would be considered to be an
"improvement".[10] In short,
if the owner of lot 16 improves the lot by adding new balconies then any new
roof over those balconies is also an improvement.
Similarly, submissions
indicate that the new roof will also cover some existing balconies that were
previously open to the elements.
In this respect it is more difficult to see
that this part of the roof serves a maintenance purpose as rain will still
presumably
blow onto the balconies and the roof therefore will not serve a
waterproofing function in the same way as proposed for the main section
of the
roof above the tiled terrace of lot 16 and the rooftop common property area.
However, following a common sense approach these
comparatively small areas of
new roofing would provide some protection from rain and may be best seen as
peripheral to the general
maintenance purpose of waterproofing the building.
Relocation of air conditioners an improvement
Installing air conditioners on common property is also an
"improvement". In the present situation, air conditioners are to be
relocated from another area rather than installed fresh but this would still
fall within the concept of work done as an improvement rather than
maintenance.
There is an argument that moving the air conditioners on top
of the new roof will assist the air conditioners to operate more efficiently.
However, I do not accept that this takes the work outside the concept of an
improvement and into that of maintenance. Rather, any
evidence that the air
conditioners are not functioning properly and need to be moved may instead be
relevant to whether the improvements
are necessary for health and safety or
whether votes opposing the relocation of the air conditioners are exercised
unreasonably.
Painting
The proposed painting of the building is for the purpose of maintenance
rather than to improve the scheme.
I do not accept the applicants’
argument that painting of small amounts of additional brickwork would take the
work outside
the general concept of maintenance.
Repairs to western roof
The proposed repairs to the western roof also fall clearly within the concept
of work for the purpose of maintaining the existing
building.
I do not
accept the applicants’ argument that addition of wall capping to stop
water seeping into the walls takes this work
outside the general concept of
maintenance.
Replacement of laser light roofing
The proposed replacement of old laser light roofing with new laser light
roofing is within the concept of repair and maintenance.
However, the extending
of rafters by one metre on each side and new guttering leading to the box gutter
raises the question of whether
the proposal serves a dual purpose of maintenance
and also improvement.
The applicants refer to a decision that involved
the replacement of a dilapidated BBQ
Hut.[11] In that decision the
proposed rendering of the BBQ Hut was seen as a peripheral aspect of the body
corporate maintaining the BBQ
Hut. However, an additional proposed cost of 36%
to install a new feature involving stainless steel bench tops and splashback was
considered to be sufficient to change the nature of the proposal from
"maintenance" to "improvement".
In short, the complete
demolition and replacement of the BBQ Hut was a reasonable manner of
"maintaining" the common property even though the proposed replacement
BBQ Hut was not exactly the same as the existing BBQ Hut. However, a
significant
proposed alteration in the form of stainless steel bench tops at an
additional cost of 36% was significant enough that the benches
amounted to an
"improvement".
In relation to the replacement of laser light
roofing it is necessary to determine if the additional work is merely peripheral
to
the replacement or if it amounts to an "improvement".
In the
present situation, the proposed extension of rafters by one metre and additional
guttering and piping leading to the box gutter
seems to be for the purpose of
improving the waterproofing of the building rather than providing any additional
usable improvement.
I therefore conclude that the proposal for replacement of
the laser light roofing is "maintenance" and the minor extensions to the
existing roof are merely peripheral aspects that do not transform the work into
an "improvement".
Air Conditioner Repairs
The proposed work on the air conditioners involves maintenance rather than
improvements.
I do not accept the applicants’ argument that
additional sealing and casing to prevent the piping insulation carrying water
into the ceiling space takes this work outside the general concept of
maintenance.
Summary
In short, resolution three proposing to accept quotations from Kenmac
Constructions for the new roof and Mossman Refrigeration Services
for relocation
of the air conditioners relate to works that include "improvements", in
the form of roofing new balconies and relocation of air conditioners. These
proposals therefore need to have been authorised by
a special
resolution.
However, motions 4, 5, 6, and 7 are properly "maintenance"
issues and I do not accept the arguments from the applicants to the effect
that these works would need to have been authorised by
special resolution.
Authorisation by special resolution
Special resolutions relied upon to authorise proposed works
Two resolutions have been put forward as providing the necessary authority
for any works that amount to "improvements".
The first of these is
a special resolution at an extraordinary general meeting on 29 August 2003
authorising the owner of unit 16
to remove planter boxes surrounding the
skylight, install a shade sail, place a false tiled floor above the balconies
below, and
make internal changes enclosing the small porch.
The second of
these is the resolution of 28 April 2006 that the body corporate install a roof
over the front section of the building
incorporating the open area above units
7, 8, 9 and 10, carry out repair works on the remaining roof section, and wall
capping above
units 16, 17 and 18. The decision of the District Court indicates
that the body corporate’s lawyers conceded that the works
proposed by this
resolution involved improvements but argued that the motion was decided as if it
were a special resolution anyway.
The District Court accepted this argument and
said that the failure of the voting paper to specify that the motion was by
special
resolution was an irregularly of the most technical nature in the
context of the case.
Building of new balconies
The proposed new balconies were discussed in some detail during a
teleconference concerning this application. The owner of unit 16
made
submissions to the effect that he had previously built the balconies at a cost
of $7,000, that these balconies helped prevent
water ingress to lots below, but
the committee removed the balconies at a cost to him of $5,000 because of a
dispute about provision
of an engineers report. Submissions by the applicants
were to the effect that the new balconies made the water ingress problems
worse,
that the plans show the balcony would slope inwards and the boxed guttering
contained within each balcony would be useless,
and that the area where the
balconies are to be installed is not common property and does not exist in its
present form requiring
a resolution without dissent to register a new plan.
I have reviewed the wording of the resolution and attached drawings as
well as the plan of the building. It is reasonably apparent
from this material
that the special resolution operates as authority for the owner of unit 16 to
install balconies above the balconies
of lots 9 and 11 below with wrought iron
balustrade to match those of the balconies below.
I am also satisfied
that, from the body corporate’s perspective, a special resolution is
sufficient to authorise an improvement
of this nature. Almost any authorisation
for an improvement to common property for the benefit of a lot allows the person
making
the improvement to take "exclusive use" of the area of the common
property at least for some period of time. If an owner wants some form of
guarantee that they can use
a specific area of common property for a specific
period of time then the owner can seek the benefit of a lease for that period.
If the owner wanted to be sure that owners could never withdraw their permission
to use an area or if improvements to an area were
to be of a permanent nature so
that it would not be feasible to restore the common property to its former
condition then a resolution
without dissent should be sought and a new community
management statement should be registered to make the areas part of the
owner’s
lot or subject to an exclusive use by-law
However, the
owner of lot 16 has indicated that he does not require permanent approval for
the new decks and they can be removed if
owners pass another special resolution
revoking the authorisation. From the body corporate’s perspective a
special resolution
is sufficient to authorise an improvement to common property
for the benefit of an owner’s lot. The minutes reflect that the
resolution was properly passed as a special resolution and it can only be
amended or revoked by another special resolution. In the
absence of the
resolution specifically providing otherwise, it is the responsibility for the
owner of unit 16 to obtain any necessary
council or other approvals in addition
to the approval of the body corporate. The resolution also does not
specifically deal with
expectations of how the owner of unit 16 will deal with
rain water that happens to fall on the balconies. However, the owner of
unit 16
remains under a general obligation to ensure that the construction of the
balconies does not cause nuisance to other lots
and lack of adequate drainage
would also provide good grounds upon which the body corporate could require
alterations to the design
or revoke the authorisation.
New roof extending over balconies
The District Court has determined that the resolution of 28 April 2006 that
the body corporate install a roof over the front section
of the building
incorporating the open area above units 7, 8, 9 and 10 operated as a special
resolution. The plan shows that the
eastern side of the building has units 7,
8, 9, 10, and 11 and that each of these units has a balcony. My understanding
from the
teleconference is that units 7 and 10 currently have open balconies and
the remaining units have a roof over the balcony but have
problems with water
ingress.
Evidence has been provided to the effect that it was always
intended to put a new roof over these balconies. The difference is that
earlier
plans proposed that the openings in unit 16’s wall leading out to the
proposed new balconies would be bricked up and
the new roof would be located
only about half way up these openings. Obviously, if unit 16 is to build new
balconies then these
openings in the wall will need to be left open and the
proposed roof will need to be lifted up a metre or two higher.
It is not
clear why the resolution of 28 April 2006 did not specifically refer to roofing
above the balcony of lot 11 or refer to
the proposed new balconies above the
balconies of lots 9 and 11. However, the body corporate had approved balconies
for unit 16
above the balconies of lots 9 and 11 and the original proposal to
build a roof only approximately one metre above the new floor level
and brick up
the access openings obviously needed to be changed.
The resolution of
28 April 2006 contemplated roofing above balconies and no reason has been
provided why a roof would not be put over
all balconies on this side of the
building. Even if the owner of lot 16 builds his additional balconies, there is
no evidence that
there would be any significant additional expense in putting a
roof over the new balconies at a reasonable height rather than at
a height that
would partially obscure the existing openings. In fact, it may actually prove
cheaper as it would no longer be necessary
to brick up the relevant openings.
Further, a roof above the height of the opening seems the only sensible solution
to allow access
to the proposed new balconies while still preventing rain
blowing onto the tiled area of lot 16 that the body corporate wishes to
avoid
trying to waterproof.
I am satisfied that roofing above balconies was
contemplated by the resolution of 28 April 2006 and that the only reasonable
solution
is to put the roof high enough to appropriately cover any proposed new
balconies built above the existing balconies. In these circumstances,
I am
satisfied that sufficient authorisation has been given by owners for aspects of
the roofing that amounts to an "improvement" and the technical objections
of the applicants in this respect will be dismissed.
Relocation of air conditioners
While the resolution of 28 April 2006 contemplated roofing above balconies,
it did not expressly contemplate relocation of the air
conditioners.
However, I have been provided with a submission to the
effect that plans distributed in December 2005 and adopted in principle at
the
extraordinary general meeting on 28 April 2006 showed that the air conditioners
would be relocated. I have reviewed a copy of
the plans and these plans show a
proposed relocation of existing air condition units to a steel frame in addition
to proposed new
roof structures over the entire building and proposed new roof
structures for the balconies of lots 7, 9 and 11.
At the meeting of 28
April 2006 owners were given various options including a new roof over the
entire scheme, a new roof over the
front with repairs to the existing roof on
the back, and new waterproofing membranes for the front of the scheme with
repairs on
the existing roof on the back. All of these options involved
significant expenditure and it would be expected that owners would
have informed
themselves of the details of the options as best as possible, including looking
at any existing plans. I therefore
consider it reasonable that the approval
given by the resolution of owners also includes approval for any incidental
works shown
in the plans including the relocation of air conditioners. In
particular, it has been submitted that this relocation is necessary
for a proper
operation of the air conditioners. Where other significant works are proceeding
it does not seem unjust or inequitable
to the applicants to allow air
conditioners to be relocated according to the original plans available at the 28
April 2006 meeting.
Conclusion
The applicants challenge the resolutions at the meeting of 15 September 2006
on the basis that these resolutions were passed as ordinary
resolutions but
needed a special resolution to the extent that they involve making
"improvements".
However, the District Court has now determined
that the resolution of 28 April 2006 effectively amounted to a special
resolution authorising
a proposal to roof the front section of the building and
repair the back section. The plans indicate that it was reasonably within
the
contemplation of this authorisation to relocate the air conditioners and also to
roof the front balconies.
The resolutions of 15 September 2006 allowed
owners to accept quotations for proposed work. Some of this work was
maintenance. Parts
of this work amounted to an improvement. However, the parts
that constituted an improvement had already been authorised by special
resolution back in April 2006. Perhaps ideally the resolution of April 2006
would have had detailed specifications for every alternative
option so the work
could have been put immediately to tender and there could be no later argument
about the scope of work. However,
it also seems impracticable and unrealistic
to expect owners or the body corporate to pay for detailed specifications for
every alternative
and it is reasonable that owners were give some proposed plans
and the opportunity to select a preferred alternative before final
plans were
developed.
In this context, the improvements in dispute had been
authorised by the resolution of 28 April and the 15 September resolutions were
effectively just allowing owners to accept quotations provided. I have not been
provided with evidence that satisfies me the resolutions
of 15 September
proposed any significant "improvements" that were not already in the
contemplation of owners and authorised by the resolution of 28 April. I
therefore do not consider it
just and equitable to invalidate these
resolutions.
Order
For these reasons, the application is dismissed.
As a final matter, I
would encourage the committee to ensure it communicates well with all owners
during the course of performing
the proposed work. Obviously the works are very
significant and some changes may be necessary in terms of time frames or the
detail
of the work. Decisions will also need to be made in relation to any
attempts to temporarily waterproof parts of the building pending
completion of
the works. The committee should keep owners informed and call meetings to
obtain authorisations from owners as necessary.
In particular, at a
teleconference concerning this dispute it seemed that the applicants were aware
of issues with the building that
were relevant to the maintenance of the
building. It would ultimately be to the benefit of everyone if all owners
worked together
to put forward problems and multiple potential solutions to the
various problems with the building and encouraged open discussion
so that owners
can make informed decisions.
[1] No. 9 Port Douglas Road, Order
0327-2006, D Toohey, 1 June
2006.
[2] Maxwell Stainlay and
Tecelec (Qld) Pty Ltd v Body Corporate for No. 9 Port Douglas Road Community
Title Scheme 24368, District Court
(Cairns), White DCJ, 1 December
2006.
[3] Body Corporate for Golden
Sands Highrise v Galtos & Anor, Appeal 33 of 1999, District Court
(Southport), Robin DCJ, 10 March
2000, paragraph 18. See also Surfers Aquarius,
Application 0218-2005, RA Meek, 11 November 2005;
[4] Proprietors "The Rocks Resort"
v. Costi, Building Units Appeal Tribunal No 227 of 1997, O’Driscoll SM, 24
September 1997.
[5] Merrimac
Heights, Application 0246-2006, RA Meek, 2 May
2006.
[6] Las Rias, Order
0063-2006, L Ex, 8 June 2006.
[7]
Bayview Shores, Order 0412-2004, RA Meek, 16 November
2004.
[8] See Butterworths
Australian Legal Dictionary.
[9] "Improvement" may also
include a change to common property by removal of an existing structure. See
Coronation Towers, Order 0043-2006, RA Meek,
3 February 2006.
[10] Las Rias, Application
0063-2006, L Ex, 8 June
2006.
[11] Paloma, Order
0005-2002, DJ Reardon, 19 June 2002.
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