austlii:qld/QBCCMCmr/2025/290
General information, not legal advice.
QBCCMCmr
2025-08-25
Original judgment source is linked above.
Beach Front Apartments on Trinity Beach [2025] QBCCMCmr 290
B. Montgomery Pty Ltd ACN 079 110 393 as trustee for the Montgomery Family Trust (applicant)
The Body Corporate for Beach Front Apartments on Trinity Beach (respondent)
Body Corporate and Community Management Act 1997 (Qld) (Act), sections 227(1)(h) and 229(3)(a)
Body Corporate and Community Management (Accommodation Module) Regulation 2020 (Accommodation Module)
INTERIM ORDER - The body corporate passed a motion to give body corporate consent to owners making a material change of use application for the scheme to the local government authority. The applicant is the authorised letting agent and seeks an interim order that the body corporate inform the local government authority that it temporarily withdraws its consent, pending a final determination of whether the motion was lawfully passed. The main complaints are that the motion was not properly grouped as one of 3 same issue motions, and otherwise that passing the motion was unreasonable because it will diminish the income and value of the letting business. The question is whether an interim order is warranted in the circumstances.
[T]he Body Corporate must not take any steps to implement Resolution 15 in the 2025 AGM, including that:
(i) the committee may not be a party to or provide consent to any Development Application to amend, add to, change or vary the applicable use of lots at the Scheme from the existing, sole use of short term accommodation and if such consent has already been given or participation in such a Development Application has already occurred, it must be withdrawn until a Final Order is given; and
(ii) the committee is not to sign, execute or otherwise enter into any documents on behalf of the Body Corporate in relation to Motion 15 until final orders are made, and if such documents have been signed, executed or otherwise entered into, the committee must withdraw that document until final orders are made
[T]hat Resolution 15 "Change of use to include permanent residential accommodation" passed by ordinary resolution in 2025 AGM was at all times, void.
¾ a timing issue, in that the Body Corporate should not have consented to the MCOU application until the statutory timeframe of three (3) months given by section 242(2)(b) of the Act had expired
¾ an agenda issue, in that motions 13, 14 and 15 are 'same issue motions' but were not presented as such in the AGM papers in the way required by section 79 of the Accommodation Module, and nor was the explanatory schedule prescribed by section 80(4) of the Accommodation Module included in the papers. Accordingly motion 15 was void from the outset and could not have been voted upon, and
¾ a decision making issue, in that the body corporate acted unreasonably in passing motion 15, in contravention of section 94(2) of the Act, and accordingly the resolution was invalid.
contractual matter, about an engagement or authorisation of a body corporate manager, service contractor or letting agent, means - > > (a) a contravention of the terms of the engagement or authorisation; or > > (b) the termination of the engagement or authorisation; or > > (c) the exercise of rights or powers under the terms of the engagement or authorisation; or
(d) the performance of duties under the terms of the engagement or authorisation.
15 Change of Use to include permanent residential occupation Ordinary Resolution
Body Corporate for CTS 32389 to approve that the committee provides owners consent for common property to accompany any development application(s) to Cairns Regional Council from any individual lot owner or owners seeking a Material Change of Use for permanent residential occupation as well as existing short-term holiday letting.
This cost would be met by each lot owner wanting "residential occupation as well as existing short term holiday letting" and the Body Corporate for CTS
... seeks to facilitate dual land uses at the site to lawfully enable occupants to reside at the premises on a long-term basis through establishing Multiple Dwellings on site, in addition to the continuation of existing use rights for shorter-term holiday accommodation (Short-term Accommodation).
¾ The Scheme is identified within the Tourist Accommodation Zone as per Cairns Plan 2016. The Tourist Accommodation Zone Code taken from the Cairns Plan 2016 relevantly provides that the Tourist Accommodation Zone is to provide for:
¾ The 20 lots within the Scheme are holiday apartments.
¾ The Cairns Plan 2016 defines short term accommodation as:
(i) providing accommodation of less than three (3) consecutive months to tourists or travellers; or
(ii) a manager's residence, office or recreation facilities for the excusive use of guests, if the use is ancillary to the use in subparagraph (i), but
(b) does not include a hotel, nature based tourism, resort complex or tourist park.
Examples: includes motel, backpackers, cabins, serviced apartments, accommodation, hotel, farm stay. Does not include hostel, rooming accommodation, tourist park.
¾ Motions 13, 14 and 15 in the 2025 AGM all dealt with alternate ways of the Body Corporate making or consenting to a development application to Cairns Regional Council for a material change of use to allow permanent residential accommodation as well as short term letting (which is currently the only type of use permitted in lots within the Scheme).
¾ Motions 13, 14 and 15 were not included in the 2025 AGM Agenda as a Group of Same Issue Motions as required by section 79 of the Accommodation Module and nor was the explanatory schedule prescribed by section 80(4) of the Accommodation Module included in the 2025 AGM Agenda.
¾ Prior to the 2025 AGM being held, the Applicant instructed our firm to write to the Body Corporate to put the Body Corporate on notice that Motions 13, 14 and 15 in the 2025 AGM Agenda were void, pursuant to section 79(9) of the Accommodation Module because there was more than one motion included on the Agenda which proposed alternative ways of dealing with the same issue and they were not presented as a group of same issue motions.
¾ We requested that the Chairperson ruled the Motions out of order pursuant to section 88 of the Accommodation Module. The Minutes of the 2025 AGM show that, in the event, Motions 13 and 14 were ruled out of order at the 2025 AGM, however, Motion 15 was not ruled out of order and it was voted upon as a valid Motion.
¾ Motion 15 was submitted by a lot owner, whereas Motions 13 and 14 were submitted by the committee. However, the lot owner who submitted Motion 15 must have had prior knowledge of Motions 13 and 14 because the words "Should Motion 13 and 14 be defeated" were included as a precondition to Motion 15 being considered, at the beginning of Motion 15.
¾ This is not a case where, if Motion 15 is declared void, a lot owner is disadvantaged by an error made by the committee in preparing the 2025 AGM Agenda and failing to include the three Motions as a Group of Same Issue Motions. The lot owner was cognisant that the other two Motions would be included on the Agenda, as is apparent from the drafting of Motion 15.
(1) This section applies if 2 or more motions (the original motions) proposing alternative ways of dealing with the same issue are submitted, under section 76, for consideration at a general meeting of the body corporate.
(2) The committee must list the original motions as a group of motions dealing with the same issue (a group of same-issue motions) on the voting paper for the general meeting.
(9) Other than for an original motion that is part of a group of same-issue motions, if more than 1 motion about the same issue is listed on the agenda, or stated in a voting paper, for the meeting all motions about the issue are void.
[33] The applicant argues that this issue should not disadvantage them or their relief regarding Motion 15, as this is nothing more than a technical defect. It is true that technical deviations from the legislation will not necessarily render a decision of the body corporate invalid. However, defective motions should not stand unless exceptional circumstances exist. Exceptional circumstances may be where the irregularity was trivial and has no material impact, and the irregularity caused no prejudice or disadvantage to other parties.
[34] I cannot accept the applicant's argument because, even when the elements of exceptional circumstances are established, where the legislative text indicates an intention that the error would invalidate the motions, I am bound to find those motions are void. The wording of section 79(9) of the Accommodation Module could not be clearer in that respect - the necessary consequence of not properly grouping same-issue motions is that all of them are void. Nonetheless, this does not conclude the matter for the applicant.
[35] The applicant also says that it was 'not necessary' for the body corporate to propose Motion 14. The applicant's position may be better articulated as an argument that the body corporate acted unreasonably in its decision and action to propose Motion 14 and not list it on the agenda as grouped with Motion 15. I do not suggest the committee could not have reasonably proposed Motion 14, but rather, the act of proposing and not listing it as a group of same issue motions could not be a reasonable action where it does not comply with the legislation. I also note that, before taking that action, the body corporate would have to make a conscious or inadvertent decision to do that act. It is with this decision process and action that the issue arises.
[36] Section 79 of the Accommodation Module was introduced, along with other amendments, for the purpose of enhancing lot owner protections and stopping 'gaming' of the outcomes where there are multiple motions dealing with the same issue. I do not mean to say that the committee actively turned its mind to the issue and purposefully failed to comply with section 79, rendering the applicant's Motion 15 invalid - in that regard, I note the outcome of the committee's action is that the body corporate's Motion 14 would also be invalid. Rather, the circumstances suggest committee failed to pay heed to the extremely relevant factor of section 79 of the Accommodation Module when it decided to place Motion 14 on the agenda and voting papers in the way it did, thereby unfairly disadvantaging the applicant In their legitimate attempt to have the installation approved.
[37] In my view, the circumstances indicate that the committee failed to have proper regard to a highly relevant requirement - namely, section 79 of the Accommodation Module - when resolving to list Motion 14 on the agenda and voting papers. I am therefore satisfied that the committee acted unreasonably in proposing and placing Motion 14 on the agenda and voting papers in the manner that it did. I will make an order that invalidates the body corporate's decision and action in this regard.
[38] It then follows that the only valid motion proposed dealing with the air conditioning condenser is Motion 15, and section 79 of the Accommodation Module does not impact the validity of Motion 15.
¾ The Body Corporate must act reasonably in administering the common property, enforcing the community management statement and carrying out its functions under the BCCM Act, pursuant to section 94(2) of the BCCM Act.
¾ The Body Corporate has failed in its statutory obligation to act reasonably in approving Motion 15 because:
¾ The original regulation module which applied to the Scheme was the Standard Module. Lot Owners decided by special resolution in 2013 to change the regulation module to the Accommodation Module, due to the nature of the Scheme. the Accommodation Module is not designed for community titles schemes that are used for permanent accommodation purposes. According to the Explanatory Memorandum for the Accommodation Module, it:
provides management processes designed for community titles schemes that are used predominantly for short or long-term letting purposes (including for example, holiday letting or serviced apartment operations) with the need for accommodation management.
¾ After changing specifically to the Accommodation Module from the Standard Module and putting long term Caretaking and Letting Agreements in place under the Accommodation Module, to introduce permanent residential accommodation to the Scheme is an unreasonable and inconsistent about-face which places the Applicant at significant and substantial financial disadvantage, having purchased the management rights business at the Scheme in reliance upon the fact that the Scheme allowed short term holiday accommodation only.
¾ The infrastructure on Scheme land, including carparking and activities permitted under the Letting Agreement, are tailored specifically to short term/holiday let accommodation and not to permanent residential accommodation, for example, until 30 June 2048 when the Letting Agreement expires, the Applicant may, without limitation:
¾ The standard of reasonableness is objective and the test is to be applied with reference to the time the allegedly unreasonable action was taken, given all relevant factors and excluding irrelevant factors.
¾ Basing a decision substantially on rational considerations and evidence is rarely an unreasonable action.
¾ Acting reasonably requires consideration of all the circumstances, including a balancing of any competing interests.
¾ There is no onus on a body corporate to satisfy an adjudicator that it acted reasonably. Rather, if the adjudicator is to invalidate an action or decision, the adjudicator must be satisfied that the body corporate acted unreasonably.
¾ A body corporate's decision is not an unreasonable action simply because it could reasonably have made a different decision.
¾ An adjudicator may not simply substitute their own view as to what would be a preferable or 'more' reasonable decision.
[1] James & Anor v The Body Corporate Aarons Community Title Scheme 11476 [2003] QCA 329 at [12] per Davies JA
[4] For general principles see for eg Australian Broadcasting Corporation v O'Neill [2006] HCA 46 and SDW2 Pty Ltd v JLF Corporation Pty Ltd & Ors [2017] QSC 1
[5] SDW2 Pty Ltd v JLF Corporation Pty Ltd & Ors [2017] QSC 1 at [21]
[6] Cohen v Peko-Wallsend Ltd [1986] HCA 70 at [6]
[9] [2016] HCA 40 (Ainsworth)
[10] See also for eg Body Corporate for Beaches Surfers Paradise v Backshall [2016] QCATA 177
[15] Ainsworth at [51]; Trojan at [32], [49]