[2019] WASAT 89
General information, not legal advice.
State Administrative Tribunal (WA)
2019-10-16
Original judgment source is linked above.
(1) Did the respondent wrongfully fail to make available to Mr Banning (or his agent) to inspect, copy or make an extract of the five specific documents identified by Mr Banning in breach of s 43(1)(b)(ix)? If the answer is 'No', can the Tribunal make an order under s 90 in any event?
(2) Did the respondent fail to comply with the provisions of the ST Act in relation to the October 2018 AGM? If the answer is 'No', can the Tribunal make an order under s 97 in any event?
(3) Does the Tribunal have jurisdiction under s 84(1)(b) with s 84(2) to order the respondent to produce the minutes of the AGM, EGM and COO meetings within two weeks of the meeting and for those minutes to be uploaded on the strata manager's portal within the same time period?; and
(4) Does the Tribunal have jurisdiction to order the respondent to pay Mr Banning $1,000 under s 81(7) with s 84(1)(a) for the time Mr Banning says he has spent in preparing his application and making submissions?
Where, pursuant to an application for an order under this section, the State Administrative Tribunal considers that the strata company for the scheme to which the application relates, or the administrator for that scheme, or the chairman, secretary or treasurer of that strata company has wrongfully -
(a) withheld from the applicant information to which he is entitled under this Act; or
(b) failed to make available for inspection by the applicant or his agent a record or document that under this Act he is entitled to inspect,
the State Administrative Tribunal may order that strata company, administrator, chairman, secretary or treasurer to supply or make available the information or to make so available the record or document, as the case may require, to the applicant.
The senior member was called upon to exercise the s 90 discretion in a context of rights afforded under s 43(1)(b) of the Strata Titles Act to inspect documents, then under s 43(1a) to request copies, all of which should be exercised within reasonable bounds and monitored by SAT to guard against the serious potential of misuse, oppression and pettiness. If a requesting person is perceived by SAT to be acting unreasonably, oppressively or obsessively by invoking such a provision, then it more than falls within the purview of SAT, by the discretion under s 90, to inhibit untoward conduct.
... The power conferred on the Tribunal, by s 90 of the ST Act is a discretionary power: see Maguire v Owners of Roslyn Strata Plan 35960 [2014] WASC 28 (Maguire) and it may only be exercised if the Tribunal concludes that the strata company to whom the request was made 'wrongfully' failed to make the requested document available (the threshold issue). As to the exercise of the discretions in s 90 of the ST Act (or s 83(1) of the ST Act), the Tribunal must guard against misuse, oppression and obsessiveness in such application (Maguire at [62]).
Section 43(1)(b)(ix) of the ST Act compels a strata company to make available for inspection 'any other records or documents in the custody or control of the strata company', relevantly, to a lot proprietor when that person makes a written request for access. Section 43(5) of the ST Act permits the person for whom the inspection is provided, or that person's agent, to either copy the document (but not take it away for copying) or make an extract of that document. Section 43(1a) of the ST Act confers a discretion on the strata company to provide a copy of such a document to a lot proprietor who makes a request. The strata company is not compelled by s 43(1a) of the ST Act to provide the lot proprietor with a copy of any document within s 43(1)(b)(ix) of the ST Act.
Section 84, when read in context with the rest of the ST Act, is not a section which bestows jurisdiction on the Tribunal. It provides a power to make particular types of orders in relation to matters within the Tribunal's jurisdiction[.]
(1) The State Administrative Tribunal is empowered to make an order that -
(a) requires a party to the dispute before it to pay money not exceeding the sum of $1,000 to a person specified in the order;
(b) requires a party to the dispute before it to do, or refrain from doing, some specified act to which the application relates;
(c) strikes out for want of jurisdiction the dispute before it.
(2) An order made by the State Administrative Tribunal may direct that the order shall be complied with within a period specified in the order.
(3) An order made by the State Administrative Tribunal that requires the payment of money may be made to take effect immediately or so as to take effect upon default being made in complying with some other order made by it.
... Section 81(7) of the ST Act, provides that the Tribunal 'cannot make any order for the payment of costs in connection with an application for an order', with two exceptions. As noted by the Tribunal in The Owners of St John's Court - Rivervale Strata Plan 6052 and Clark [2010] WASAT 126 [69]:
The respondents' application for costs is misconceived. By virtue of s 5 of the ST Act, in the event of any inconsistency between it and the enabling legislation under which the Tribunal exercises jurisdiction, the provisions of the enabling Act apply. Accordingly, none of the cost provisions of the SAT Act have any application in the face of s 81(7) of the ST Act which provides that the Tribunal cannot make an order for the payment of costs in connection with an application except in two particular circumstances.
(a) when allowing an applicant to amend the application, to compensate persons for time unnecessarily spent in connection with the application; or
(b) under section 103H(8).
(a) He wants to inspect the documents to understand Mr Thomas' roles and responsibilities, the terms of his contract including remuneration as well as his qualifications and references because he is concerned that Mr Thomas has access to all the keys of the strata complex and to the CCTV, that he can view the strata company's bank account and that he is responsible for hiring contractors and determining when they have finished the job the contractor was hired to do. Mr Banning said he is also concerned that Mr Thomas may be paid too much;
(b) He inspected documents on three separate occasions. The first time was on 11 February 2019 when he was only allowed to inspect the strata company's expenditures and minute books, the PKF Mack invoice (but not the advice) and the October 2018 AGM meeting minutes. On the second occasion, on 24 July 2019, he was presented with seven archive boxes and 6GB of electronic files. Despite asking, Mr Banning says Ms Maxwell, the strata manager, provided little assistance to locate or confirm the existence of the documents requested. The third and final occasion was on 19 August 2019 when he was presented with seven archive boxes and computer access to electronic files;
(c) Despite having been given access to records and documents, he is concerned that there is not a proper index, and that the documents do not appear to be stored in a central location but rather are stored and kept partly by the strata manager, partly by various council members, partly by the building manager and partly by others. Documents held by the building manager do not appear to be stored in the strata records. Further, the extensive number of records made it difficult for him to locate or to verify the existence of the documents he specifically requested;
(d) He found the whole inspection process to be very time consuming, delaying and bullying. He said in a normal business, all of the documents he sought would have been provided to him instantaneously;
(e) He refutes the respondent's statement that his request to inspect documents was oppressive or petty. Sending 28 to 31 emails over a period of 566 days (or, an average of about two emails per month and of which 14 emails were 'reminder' emails) to the respondent is not, in his view, oppressive or petty;
(f) The respondent does not have any discretion to refuse his request (or that of any other owner) to inspect documents under s 43. If the strata company does have such discretion, then in his view, the onus should be on the respondent (and not on him or on another owner) to make an application under s 90 seeking an order from the Tribunal;
(g) The respondent has 'impersonated' the Tribunal and has used the Tribunal's discretion (which the respondent cannot do so), to refuse his s 90 application to inspect specific documents; and
(h) He is concerned that any reference to him by the respondent as a 'de facto councillor' and/or a 'shadow councillor' is an attempt to defame, denigrate and belittle him in front of all owners and to prevent him from raising any further questions.
That the Strata Manager release owners email address to owners upon request[.]
(a) Motion 12.1 conflicts with the owners' rights under the ST Act;
(b) Even though email addresses were not prevalent in 1985 when the ST Act was enacted, that Act intends for owners to be able to communicate between themselves which is why the strata roll (setting out the physical addresses of owners) was included in the ST Act and which is a document accessible to all owners;
(c) No issues arise under privacy laws if the purpose of the release of the email addresses pertains to strata body communications only. Such communications are, according to Mr Banning, owned by the strata company and under the control of the strata company; and
(d) The strata company does not have any discretion to restrict information or documents in the possession of the strata company.
(a) Minutes of the AGM and the COO are published three to six months after the meeting is held with the result that the minutes lose their value over time;
(b) Owners should be aware of the actions of the COO on a timely basis as they give a status and an update of what is happening in the strata complex;
(c) The timely release of minutes is a good business practice and allows owners to discuss, review and consider issues that affect all owners in the strata complex;
(d) The respondent's undertaking is for unadopted minutes of AGMs and EGMs. The undertaking does not include COO minutes; and
(e) The Tribunal in Horne and The Owners of Aqueous Apartments Strata Plan 51953 (CC 406 of 2015) (Horne) made orders by consent of the parties whereby the strata council was required to provide in electronic format as soon as possible after the meeting, minutes of the COO and general meetings. To require the strata company to have available electronic minutes of meetings in a timely manner is therefore not interfering with the management and decisionmaking of the respondent but rather enforcing a reasonable business practice which is beneficial for all the owners.
(a) The respondent failed to apply to the Tribunal seeking an order to refuse his request to inspect specific documents. Because of this failure, he was required to make an application under s 90 to the Tribunal;
(b) It was only after he made his s 90 application to the Tribunal that the respondent allowed him to inspect documents. The respondent did this so that he would withdraw his application (which he has not done so);
(c) He spent much time on his submissions to the Tribunal, gathering all the paperwork and going to the hearings; and
(d) He wants to 'make a statement' by seeking an order requiring the respondent to pay him $1,000 to make it clear that he should have been provided the specific documents unless the respondent has an order from the Tribunal to the contrary.
(a) The first inspection was on 11 February 2019. It was a limited inspection by Mr Banning where he inspected records and documents including the hard copy minutes book and accounts from 1 July 2018 to 31 December 2018. The second inspection was on 23 July 2019. At that inspection, Mr Banning had access to seven archive boxes and a laptop on which the desktop had a folder named '9704' which contained 13,516 files and within it 45 sub folders. The folder contained 6.19GB of data. Finally, the most recent inspection was on 19 August 2019. At that inspection, Mr Banning had access to the minute books, seven archive boxes and a laptop which had on its desktop a folder named '9704' which contained over 13,500 files and 6.24GB of data. On that basis alone the respondent says there is no basis for the order sought by Mr Banning under s 90 of the ST Act. In respect of the second and third inspections, Mr Banning had the opportunity to inspect all the documents of the strata company between the hours of 10.00 am to 4.00 pm;
(b) Mr Banning has made a 'mountain out of a molehill' (referring to the phrase used by Kenneth Martin J in Maguire at [61]) because in cross-examination Mr Banning confirmed that he has inspected various versions including some duplicates of a draft employment contract for Mr Thomas, and that he has inspected documents of, or lists of the roles and responsibilities of the building manager;
(c) Mr Banning seeks verification from the strata company as to existence or otherwise of documents. The decision in Maguire is clear that the strata company has no such obligation;
(d) Mr Banning's s 90 application does not arise out of any belief that the documents requested actually exist and that the strata company declined to allow him to inspect them. Rather, his s 90 application is aimed at allowing Mr Banning to later make a point to other owners about decisions taken (or not taken) by the COO. In this regard, Mr Banning did not disclose to the Tribunal his voluminous earlier requests to the strata company for information and for copies of documents, nor the responses to those requests and that Mr Banning's motivation for his s 90 application is an assertion that there has been a 'lack of due diligence' by the strata council concerning the building manager;
(e) Mr Banning sees his role as a 'de facto' councillor or a 'shadow councillor' second guessing decisions taken by the COO. This is supported by the documents submitted to the Tribunal which show that:
(i) Mr Banning has reviewed and challenged many of the decisions of the elected COO;
(ii) When Mr Banning receives an answer to a question about a decision of the COO that prompts another question from him;
(iii) Mr Banning has received answers to most of his questions about decision taken; and
(iv) The COO and the strata manager have spent much time answering Mr Banning's queries, to the best of their ability, notwithstanding that they are under no obligation under the ST Act or the by-laws to provide answers to, or information in response to Mr Banning's queries;
(f) Mr Banning has engaged in discreditable conduct when giving evidence at the final hearing in that he attempted to split hairs between what his view was about information within an information sheet circulated to owners before the 2018 AGM and what Ms Ezekiel's view of information was that led to the circulation of that sheet. That information sheet listed both Mr Banning and Ms Ezekiel as the authors; and
(g) When Mr Banning did not get his way based on his view of what s 43 obliged the strata manager and strata company to do, he sent an email to Ms Maxwell on 6 December 2018 threatening to cause commercial damage to the strata manager by stating:
[A]gain I find it very unprofessional of Southern [Strata] to not respon[d] to my email if only to say that you have receive[d] it and will respond. Southern has failed to respond to many of my emails and caused me to continue to repeatedly ask the same questions. Is it really necessary for me to address this issue on social media, Facebook, Flat Chat, LookUpStrata, SCA, Landgate, local newspapers and etc?
(a) The management of a strata company is best left to the strata company and that the Tribunal should not too readily impose its own views of what is reasonable: Council of Owners Strata Plan 8969 and CleaverWilkinson [2013] WASAT 196 at [14] (Cleaver-Wilkinson).
(b) The scope for intervention by the Tribunal in the dayto-day internal management decisions of a strata company and its council is, under the ST Act, generally quite specific; usually quite limited and often only available as a last resort: Gawor at [69].
(c) The dissatisfaction with the management of a strata company ought to be addressed at a general meeting of owners and that the Tribunal should be slow to interfere with the strata company but it will intervene where the strata company acts unreasonably: The Owners of St John's Court Rivervale Strata Plan 6052 and Clark (No 2) [2011] WASAT 16 at [42] (Owners of St John's Court).
(d) It is possible for persons acting reasonably to come to opposite conclusions on the same set of facts: CleaverWilkinson at [14(3)].
Did the respondent wrongfully fail to make available to Mr Banning (or his agent) to inspect, copy or make an extract of the five specific documents identified by Mr Banning in breach of s 43(1)(b)(ix)? If 'No', can the Tribunal make an order under s 90 in any event?
[T]he difficulty with trying to accede to your request is that some of the documents requested weren't in existence. So things like police certificates, CVs and the like. To my knowledge they weren't in existence, they may have been, because I wasn't on council at the time. So I was happy that you have the right to inspect, to determine for yourself, whether those documents existed or not. So in relation to those, there was issues [in] relation to their existence.
...
Your constant requests which led to numerous other requests were such that I, personally, didn't believe that if I said, 'We don't have those documents,' that you would believe that. So what you were provided with was everything that the strata company had for you to work out for yourself whether your request had been complied with.
...
I was complying with what I was led to believe was the obligation of the strata company to provide documents. And that resulted in the provision of all documents in the strata's position.
You were asking for a number of documents that, to the knowledge of the strata, didn't exist. And you persisted in that notwithstanding that you were told, at the AGM in 2018, that a contract had been prepared and was awaiting signature by - by Paul Thomas. So you - you had everything that we had. We didn't have a signed contract and still haven't got a signed contract. Your request that identified particular documents was such that it was extremely difficult to meet that request. In relation to the documents that didn't exist, obviously, we couldn't provide them. ... We didn't have a signed contract that we could say to you, 'Here's the contract, Mr Banning.' And in relation to police clearances, CVs and the like, those documents didn't exist.
It is my understanding that the Council is required by the Strata Act to accept and reply to correspondence from owners. Council is obligated via the Act to reply to owners' questions, not just acknowledge receipt.
...
The email you sent below answers some of my questions, but not all of the questions. I'm still waiting specific replies to my email questions which have not been answered.
Did the respondent fail to comply with the provisions of the ST Act in relation to the October 2018 AGM? If 'No', can the Tribunal make an order under s 97 in any event?
Does the Tribunal have jurisdiction under s 84(1)(b) with 84(2) to order the respondent to produce the minutes of the AGM, EGM and COO meetings within two weeks of the meeting and for those minutes to be uploaded on the strata manager's portal within the same time period?
Does the Tribunal have jurisdiction to order the respondent to pay to Mr Banning $1,000 under s 81(7) with 84(1)(a) for the time Mr Banning says he has spent in preparing his application and making submissions?
The respondents' application for costs is misconceived. By virtue of s 5 of the SAT Act, in the event of any inconsistency between it and the enabling legislation under which the Tribunal exercises jurisdiction, the provisions of the enabling Act apply. Accordingly, none of the cost provisions of the SAT Act have any application in the face of s 81(7) of the ST Act which provides that the Tribunal cannot make an order for the payment of costs in connection with an application except in two particular circumstances.
I certify that the preceding paragraph(s) comprise the reasons for decision of the State Administrative Tribunal.
Council of Owners Strata Plan 8969 and CleaverWilkinson [2013] WASAT 196
Gawor and The Owners of Dawesville Caravan Park Strata Plan 14644 [2015] WASAT 60
Maguire v Owners of Rosyln Strata Plan 35960 [2014] WASC 28
Nelson & Anor and The Owners of Mt Eliza Apartments Strata Plan 24594 [2006] WASAT 106
Seferovic and The Owners of Minorca Strata Plan 6593 [2017] WASAT 147
Seghezzi and The Owners of 9 The Avenue Crawley Strata Plan 27842 [2013] WASAT 53
The Owners of St John's Court Rivervale Strata Plan 6052 and Clark (No 2) [2011] WASAT 16
White City Investments Pty Ltd v The Owners of 43 Kinsella Street Joondanna Strata Plan 14493 [2015] WASAT 37