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Cathedral Place 'Duhig' [2011] QBCCMCmr 6 (6 January 2011)

Last Updated: 21 February 2011

REFERENCE: 0959-2010


ORDER OF A REFEREE


MADE UNDER PART V


BUILDING UNITS AND GROUP TITLES ACT 1980


Name of Plan:
Cathedral Place ‘Duhig’
Address of Building or Parcel:
41 Gotha Street, Fortitude Valley Qld 4006

TAKE NOTICE that pursuant to an application made under section 77(1) of the Building Units and Group Titles Act 1980 by Randall Edwards, a co-owner of lot 47


I hereby order that the application for the following orders:
  1. That for a valid Extraordinary General Meeting to be held, the Notice of that meeting must contain all of the motions listed on the agenda and that the voting paper must also contain all of the motions listed on the agenda, and that all of the above must be sent out with the Notice of Meeting and served on owners at least 7 days prior to the meeting.
  2. That should the omission of motions and the omission of those motions from the voting paper occur, a new Notice must be sent and served on owners at least 7 days prior to the meeting being called.
  3. That if a General Meeting of Cathedral Place “F” Duhig 106965 called for the 21st October 2010 is held, it be ruled invalid because the Notice of meeting did not contain all of the motions listed on the agenda nor did it contain a voting paper with all of the motions listed on the agenda.
Is dismissed.

STATEMENT OF REFEREE’S REASONS FOR DECISION - 0959-2010


“Cathedral Place ‘Duhig’” CTS 0

Application

This application is by Randall Edwards (the Applicant), a co-owner of lot 47, seeking the following final orders:


  1. That for a valid Extraordinary General Meeting to be held, the Notice of that meeting must contain all of the motions listed on the agenda and that the voting paper must also contain all of the motions listed on the agenda, and that all of the above must be sent out with the Notice of Meeting and served on owners at least 7 days prior to the meeting.
  2. That should the omission of motions and the omission of those motions from the voting paper occur, a new Notice must be sent and served on owners at least 7 days prior to the meeting being called.
  3. That if a General Meeting of Cathedral Place “F” Duhig 106965 called for the 21st October 2010 is held, it be ruled invalid because the Notice of meeting did not contain all of the motions listed on the agenda nor did it contain a voting paper with all of the motions listed on the agenda.

The Applicant also sought an interim order in the following terms:

That an order be made that the Chairperson rule out of order any Extraordinary General Meeting of Cathedral Place “F” Duhig 106965 held on the 21stof October (and/or adjourned on such) because the meeting was not called according to the legislative requirements.

On 21 October 2010, I dismissed the application for an interim order.

As stated in my reasons for the interim decision, the Applicant provided the following information by way of background:


As stated in my reasons for the interim decision, the Applicant then provided the following grounds:


Jurisdiction

The Cathedral Place Community Body Corporate (CPCBC) is created by virtue of the Mixed Use Development Act 1993 (MUD Act) (s167(1)). The bodies corporate created by the registration of a group titles plan or building units plan subdividing a community development lot or a community stratum lot becomes a member of the CPCBC (s167(6), MUD Act).

The current members of the CPCBC are: Oxford and Cambridge body corporate; Notre Dame body corporate; Canterbury and Westminster body corporate; Kensington and Sandringham body corporate; Duhig body corporate; and Cathedral Village body corporate. A member of the CPCBC may appoint a person to represent the member (s169(1), MUD Act).

The Building Units and Group Titles Act 1980 (BUGT Act) applies for the operation of the MUD Act (s5A, BUGT Act). Section 214A of the MUD Act provides that “Unless otherwise provided in this Act, a dispute about the operation of this Act or the rights and obligations of persons under this Act may be dealt with under the Building Units and Group Titles Act 1980, part 5”.

Part 5 of the BUGT Act concerns disputes. Part 5, division 3 makes provision for orders by a referee. Within division 3, section 77 provides general powers of a referee to make orders. Relevantly, section 77(1) provides a general power for a referee, on application of a proprietor, to make an order on any person entitled to make an application under this subsection or on the chairperson, secretary or treasurer of the body corporate for the settlement of a dispute, or the rectification of a complaint, with respect to the exercise or performance of, or the failure to exercise or perform, a power, authority, duty or function conferred or imposed by this Act in connection with that parcel. An order made may include such ancillary or consequential provisions as the referee thinks fit (s73(1)(f), BUGT Act).

The Applicant is a member of the Duhig Body Corporate and is therefore entitled to make an application under section 77(1), against the chairperson and/or the Duhig Body Corporate.

Investigation

A referee may make investigations with respect to the application as the referee thinks fit (s.73(1)(f), BUGTA).

Submissions

Pursuant to section 73 of BUGTA, submissions were sought from all owners (excluding the Applicant), in response to the final orders sought.

On 2 November 2010, a copy of the application was provided to Peter Zunker for distribution to all owners of lots included in the scheme (excluding the applicants).

In addition to the submission made in response to the application for the interim order which is repeated below for the sake of completeness, a further submission from the Owner of Lot 46 was received, supporting the application. The owner stated that Notices received by owners from the body corporate are always written in a legalistic way with little supporting explanation in easily understandable form and with little or no explanation of reasons/alternative options and comparative costs/benefits. The owner also stated that it was of some concern that there is a possible conflict of interest for the Duhig representative on the body corporate concerning the caretaking contract. The Owner of Lot 46 believes that it is important that rules for proper notice and form of meetings be strictly observed. The Owner further states that the resolutions in question concern a cost to owners of $250,000, which is substantial. It is not clear why such a cost should be incurred, why it is necessary to do so now and the consequences of not incurring such a cost at this time, she further states. She hopes that any new meeting will explain the available courses of action and the likely changes and outcomes more clearly.

Peter Zunker, Chairperson of the Duhig Body Corporate made submission in response to the application for the interim order, to the following effect:


Applicants’ Reply

The Applicant inspected the submissions made in response to the application for both interim and final orders and replied to the following effect:


Update

The meeting scheduled for 21 October 2010 was adjourned until 25 October 2010. The only motion carried at the adjourned meeting was the first, which was to adopt as a true and correct record, the minutes of the adjourned Annual General Meeting held on 17 May 2010. All three motions in relation to the caretaking contract failed, along with another motion in relation to a visitor car park.

Determination

Relevant Law

The BUGTA contains relevant provisions to the following effect:


Decision

Validity of Meeting

From the information supplied in the application and submission, as stated in my reasons for the interim decision, it appears as though the following breaches of the BUGTA occurred in relation to the original Notice of Meeting, dated 12 October 2010:


In respect of the re-issued Notice of Meeting dated 15 October 2010, it appears as though the above breaches of the BUGTA were remedied. However, this came at the expense of a breach of the requirement in s.1(4)(a), Part 2, Schedule 2 to provide at least 7 days notice of the meeting scheduled for 21 October 2010, although the adjourned meeting which was held on 25 October 2010, was ultimately held after 7 days notice to owners.

For the reasons outlined in my interim decision, I declined to order any form of interim relief to either prevent the meeting from proceeding, or to prevent any motions purportedly decided at it from being implemented. In light of the results of the meeting, at which only one motion (to confirm the minutes of the most recent Annual General Meeting) was passed, with no dissenting votes, I do not see any need to investigate this matter further. In the absence of any owner either making application with the office after 21 October 2010, or making submission in response to this application, complaining of any disadvantage suffered by the lack of notice (except for the submission from the owner of lot 46, which in my view was more critical of the content of the notice, or lack thereof, rather than the period of notice given) I decline to make a final order declaring the meeting invalid, as requested to do so by the Applicant.

Calling of General Meetings Generally

In relation to the first and second orders sought by the Applicant, I decline to make any orders, on account of there not being any “dispute”.

After the application for the interim order was dismissed, and the outcome of the meeting ultimately held on 25 October 2010 known, the Applicant was given the opportunity to advise whether he still wished to proceed with the application for final orders. The Applicant advised that he believed the application needed to proceed because the final orders seek a ruling as to whether a general meeting should go ahead if the agenda/calling of the meeting is not done correctly. He further stated that that was a problem in their building and therefore should at least find out what the ruling would be in such a scenario.

This application has been made pursuant to section 77(1) which relevantly provides a power for a referee, on application of a proprietor, to make an order on any person entitled to make an application under this subsection or on the chairperson, secretary or treasurer of the body corporate for the settlement of a dispute, or the rectification of a complaint, with respect to the exercise or performance of, or the failure to exercise or perform, a power, authority, duty or function conferred or imposed by this Act in connection with that parcel. As mentioned earlier, under ‘Jurisdiction’, a referee’s power to make an order in relation to the MUD Act is conferred by section 214A of that Act.

Relevantly, section 77(1) specifies that a ‘dispute’ or ‘complaint’ must relate to the exercise or performance of, or the failure to exercise or perform, a power, authority, duty or function conferred or imposed by this Act. Section 214A contemplates a ‘dispute’ about the MUD Act’s operation
or the rights and obligations of persons under the MUD Act. A referee’s power under section 77(1) is to settle the ‘dispute’. In my view, these provisions require the existence of a ‘dispute’.

However, neither Act defines the meaning of ‘dispute’. In the comparable dispute resolution jurisdiction conferred by the Body Corporate and Community Management Act 1997 (BCCM Act), section 227 prescribes the meaning of ‘dispute’ as being between particular parties such as the owner of a lot and the body corporate, with section 238 stating that A person ... may make an application if the person is a party to, or is directly concerned with, a dispute to which this chapter (chapter 6) applies and has made reasonable attempts to resolve the dispute by internal dispute resolution. Section 276(1) of the BCCM Act provides that an adjudicator may make an order to resolve a dispute. Subsection (1) also contemplates the making of a declaratory order, but there is no equivalent power in the BUGT Act.

The issue of the existence of a ‘dispute’ under the BCCM Act has been considered by the District Court (the then appellant jurisdiction against an order made by a department adjudicator under the BCCM Act). In K.G. Tully & Anor. v The Proprietors The Nelson Body Corporate [2000] QDC 031,
Judge Robin QC held that There must be “dispute” before an adjudicator has jurisdiction. The application identified the committee of the body corporate as the other party to the dispute. The respondent's case is that the nature of the permission sought by the appellants was such that
the body corporate itself must give permission or authority; it never having been asked by the appellants to do so there can be no dispute involving it as a party, and therefore no right in the applicants to apply to the adjudicator on the basis that they are parties to "a dispute" for
purposes of s.192(1)(a) (renumbered as section 238). The objection to the application is sound in principle, in my opinion. The existence of a relevant “dispute” is fundamental to an adjudicator having jurisdiction.

In Dindas & Anor v Body Corporate for One Park Road CTS 2114 & Ors [2006] QDC 302, Judge Wilson SC removed an adjudicator’s order stating that “The dispute resolution provisions do not empower an adjudicator to make orders about how a lot owner may vote in relation to a future matter, and limit the adjudicator’s powers to circumstances where a power has been exercised contrary to the legislation. The adjudicator has assumed (without any factual foundation for the assumption) that all future proposals for the appointment of a building manager by either the appellants, or the respondents will be "unreasonable" and, therefore, invalid when there is
no proper basis for that presumption. Further, there is nothing in the Act or modules that prevent a lot owner from voting at a general meeting in favour of the appointment of themselves as a service contractor, even though they might derive a direct or indirect benefit.”

These comments are relatable to the jurisdiction of a referee under the BUGT Act and support the view that a referee only has jurisdiction to make an order if there is an identifiable ‘dispute’. I am not aware of any provision in the BUGTA or the MUD Act which empowers a referee to deal
with an anticipated contravention of either of these Acts (in contrast to the power of an adjudicator under section 276(1) of the BCCM Act). The BUGT Act and the MUD Act are quite specific in conferring powers on a referee. It should also be noted that section 214A of the MUD Act does
not in any way confer exclusivity.

The Applicant purported to seek, in the first and second orders sought, a declaration concerning the validity of future extraordinary general meetings because it would be desirable to know what the ruling would be in a scenario where a Notice of General Meeting was not issued correctly. The application in relation to the meeting scheduled for 21 October 2010 and adjourned to 25 October 2010 has been determined. The Applicant goes on to seek orders in relation to a hypothetical situation which may or may not eventuate in the future. In such circumstances, I do not consider that the first and second final orders sought relate to a ‘dispute’ of the nature mentioned in section 214A of the MUD Act. I do not consider that a referee has power to make orders about matters that are not in existence at the time an application is lodged. I consider that a referee’s powers are limited to circumstances where a power has been exercised contrary to legislation.

If a “dispute” does arise in the future, then an interested party will be at liberty to make an application with this Office at that time.

In my view, the ‘dispute’ the subject of this application has been resolved and the ‘dispute’ which the applicant contemplates in relation to the calling of future extraordinary general meetings is not a dispute about the operation of the MUD Act or the rights and obligations of persons under the MUD Act, at this stage. Therefore, the first and second final orders sought are also dismissed.

Order

For these reasons, I make the order above.



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