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[2019] ACAT 10
ACT Civil and Administrative Tribunal
2019-01-23
Original judgment source is linked above.
Motion 1 (Special Resolution): The proprietor of Unit 5 seeks approval to make the following alterations to their unit: shift
The extensions and alterations have a minimal impact and are Development Application (DA) approved. I believe that the works are not overly large and will have only normal minimal impacts similar to any other ordinary residential development. I believe that that it is unreasonable to refuse to support the proposal(sic).
(f) an order repealing or amending a resolution of a general meeting or executive committee based on a merits review of the resolution by the ACAT;
(g) an order giving effect to an unsuccessful motion for a resolution of a general meeting (either as originally proposed or as amended by the ACAT) if the ACAT is satisfied after merits review of the motion that opposition to the motion was unreasonable;
(a) The provision involves a two-step process, firstly to undertake a merits review to determine which is the correct and/or preferable decision, and then to determine whether opposition to the motion was 'unreasonable'.
(b) The review is de novo and the Tribunal is able to consider issues of both fact and law.
(c) The ACAT considers and determines issues as at the date of the hearing and is able to consider evidence not available to, or not considered by, the owners corporation at the time of their decision.
(d) When conducting the merits review, there is no threshold question of reasonableness or unreasonableness of the original decision to be determined before the ACAT may proceed to make an order. However, before an order giving effect to an unsuccessful motion is made, the ACAT must be satisfied that opposition to the motion was unreasonable.
(e) The test to determine if the opposition to the motion was unreasonable is not a subjective test of the intentions of the unit owners who opposed the motion. Rather, it is an objective test taking into account all relevant circumstances.
(f) An opponent to the motion is not required to act with altruism or sympathy for the interests of the proponent, at the expense of the opponent's reasonably held view of their own interests.
(g) Whether or not there is evidence of other pending applications, it may be reasonable to consider the cumulative effect of multiple identical improvements generating an adverse impact in deciding whether to oppose a motion.
The basic obligation of the Tribunal is to reach the decision that is considered to be the correct and preferable decision. Smithers J in Drake v Minister for Immigration and Ethnic Affairs (1979) 2 ALD 60 at 78 said: 'The duty of the Tribunal is to satisfy itself whether a decision in respect of which an application for review is duly instituted is a decision which, in its view, was objectively the right one to be made'. This duty may be described as being 'to make the correct and preferable decision'.
It is usually said that the duty of the Tribunal is to make the correct or preferable decision. However, that there is a distinction between the two formulae is brought out well in Re De Brett Investments Pty Ltd and Australian Fisheries Management Authority and 4 Seas Pty Ltd (party joined) [2004] AATA 704; (2004) 82 ALD 163 at 194 where the Tribunal said:
The Tribunal may conclude that there is only one decision that is correct on the facts it has found on the evidence and according to the law that it must apply. It then makes its decision accordingly. In other circumstances, it may conclude that more than one decision may correctly be made. If that is so, the role of the Tribunal is to determine which decision is the preferable decision and so the correct and preferable decision.[14]
(1) A unit owner may erect or alter any structure on the unit or the common property only -
(a) in accordance with the express permission of the owners corporation by resolution not opposed by 2 or more members[15]
As this development is within a Units Plan, the owner of unit 5 is required to seek approval of the owners corporation prior to the commencement of any building work.[16]
If satisfied a motion ... considered by a general meeting of the body corporate and requiring a resolution without dissent was not passed because of opposition that in the circumstances is unreasonable - an order giving effect to the motion as proposed, or a variation of the motion as proposed.
The adjudicator described the issue which she was required to address as being "whether the opposition to [the] motion was unreasonable in the circumstances and whether the Body Corporate acted reasonably in refusing to give approval. As indicated above, to state the issue in this way was to fail to appreciate that s94(2) of the BCCM Act did not govern the resolution of the matter. (footnotes omitted)
It was no part of the function of the adjudicator under Item 10 of Sched 5 to seek to strike a reasonable balance between competing positions. The adjudicator's attention should have been focused squarely upon whether the opposition by a lot owner or owners to the passing of the resolution was unreasonable. (emphasis added)
The adjudicator's task under Item 10 of Sched 5 is not to determine whether the outcome of the vote of the general meeting of the Body Corporate was a reasonable balancing of competing considerations, but whether the opposition of lot owners to the proposal was unreasonable. (emphasis added).
Once the Court of Appeal accepted, as it did, that the grounds of opposition to the proposal considered by the adjudicator raised questions in respect of which reasonable minds may differ as to the answer, it is impossible to see how opposition to the first respondent's proposal based on those grounds could be found to be unreasonable.[18]
Your opinion as to reasonableness and unreasonableness has been judged by reference to whether the development complies with the provisions of the Territory Plan, has it not?---Yes.[27]
who am I to comment on what other people think is reasonable? I'm - I'm a town planner. I look at reasonableness in relation to the territory plan.[32]
(a) the scale of the proposal is out of character and context;
(c) overlooking and cause loss of privacy to Unit 4;
(d) the proposed swimming pool would create potential for noise and disturbance, as well as water costs which would be shared by other unit owners;
(f) approval would create a precedent for similar changes;
(g) absence of consultation and change to unit entitlement; and
Scale of the proposal is out of character and context
the integrated townhouse group sits within a landscaped setting that integrates the development within its bush context on the edge of the Red Hill Nature Reserve. The form and materiality of the attached dwellings respond to the site's landscape context, and the residences have been carefully orientated and sited to respond to the site conditions and create a cohesive design and character throughout the development.[34]
A company called Edil Constructions built the complex and several of the people involved in the design and construction lived there. An Italian, Pier Carlo Tonelli (the engineer) lived behind our house in Unit 5 (now held by Mr Bonansea). His brother Alberto Tonelli (the architect) lived diagonally opposite us in Unit 6 (now held by Mr and Mrs Rolfe). The Project Manager lived in Mrs Rudge's home at Unit 3.
The Tonelli's were very stylish builders who believed in good design and tried to produce a uniquely liveable development. I remember my father remarking frequently how peaceful life was up on the hill and how clever the design of the units was as we are blissfully unaware of our neighbours.
The Tonelli's opted to build a low-density development where liveability and amenity were the key. Each unit has large windows and excellent natural light, yet no unit in the original plan overlooked any other unit. Nearly every unit had an unimpeded vista up the hill to the Red Hill Reserve and every unit had long views towards the City.[36]
I'd be surprised, but people are entitled to their own opinion.[40]
I would be tempted to suggest it might - would be.[41]
will not look substantially different from the other units. The additions are not large on a comparative scale with other Red Hill developments. Architectural style and form, while not exactly the same, will be very similar to existing. For these reasons it is my opinion that the character will also be very similar...[43]
Well, I think it's quite reasonable to build a - a large house in Red Hill. That's -that's a big point I was making with that statement. And, there are other large houses in Red Hill. That's basically all I was saying.[45]
Do you accept that an owners corporation could take the view that while it might be perfectly acceptable to build a large house in Red Hill, within our particular units plan, we don't think we should judge things by reference to other large houses along Mugga Way or other parts of Red Hill, we'll judge it on our units plan only?--- I think that's an unreasonable thing to do, because if you say that, if you're going to say - it depends on what your context is. If you're going to say you can't have a unit that's any bigger than the ones that are there, I think that's unreasonable.[46]
The designer established a strong uniformity in style, massing, roof form and cladding, fenestration, material and colour pallete(sic) for the buildings within the estate. The result of this design composition: siting, spacing, interface, and building design has been a finely balanced estate with the various elements in concert with each other. This is both a strength and a weakness, because the existing harmony relies on avoiding any disturbance of elements that form the composition.[47]
give the appearance of an oversize building, out of scale with its neighbours, along the upper level of the Estate.[48]
It was not for the adjudicator to reject one set of architectural opinions because she perceived them "to be importing a subjective view of the impact of the alteration"https://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/cth/HCA/2016/40.html?context=1;query=ainsworth;mask_path=au/cases/cth/HCA - fn107. Axiomatically, both sets of opinions imported "a subjective view of the impact". Consequently, it was not open to the adjudicator to reject one of them on that basis while, in effect, preferring the other as if it did not. The inconsistency, and hence the error, in that reasoning is manifest. Moreover, as the Tribunal in effect observed, in view of the standing of the architects concerned, it could hardly be said that it was unreasonable to prefer one set of opinions over the other; and there is certainly nothing else in the legislation which purports to subjugate matters of reasonably defensible personal taste and preference to the demands of laissez-aller alteration. Consequently, even if the adjudicator's preferred architectural philosophy was the latter, it was not within the statutory task with which she was entrusted to impose it on those opposing Albrecht's motion.[53] (footnotes omitted)
Ensure development respects valued features of the neighbourhood and landscape character of the area and does not have unreasonable negative impacts on neighbouring properties.
In planning terms, the residential codes produced have been designed so that development that is considered compliant will satisfy the objectives of the Territory Plan and, in doing so maintain and deliver an acceptable standard of residential amenity.[58]
a pool is a normal residential allowance that people can have under the Territory plan. It's not an unusual thing to put a swimming pool on a residential property if you've got the room. He has the room, it's compliant. I think it's unreasonable to say that he can't have a pool. If he could comply with the Territory plan, I think the body corporate should accept that the Code protects them, the Territory plan protects them, the Noise Protection Act protects them. I think they should just treat this as a normal person doing a normal thing. That's basically it.[67]
[1] I have used the numbers for the different units as identified on the Units Plan and on the drawings for the proposed works, rather than the 'street address' numbering used for each townhouse.
[3] Exhibit R1 (witness statement of Lawrence Lynch) page 41
[4] Exhibit R1 (witness statement of Lawrence Lynch) page 40
[5] Exhibit A2 (witness statement of Ted Streatfeild) paragraph 11
[6] Exhibit R1 (witness statement of Lawrence Lynch) page 71
[7] Exhibit R1 (witness statement of Lawrence Lynch) pages 74-80
[8] Uren & Anor v The Owners - Units Plan No 396 [2017] ACAT 51
[9] Uren & Anor v The Owners - Units Plan No 396 [2017] ACAT 51 [17]-[18]
[10] The Owners - Unit Plan No 396 v Uren & Blundell [2017] ACAT 100
[11] Nash v The Owners - Units Plan 2413 & Ors [2018] ACAT 54 [footnote 32]
[12] Rampala v The Owners - Units Plan 1330 [2018] ACAT 35
[13] Dennis Pearce, Administrative Appeals Tribunal, (LexisNexis Butterworths, 4th ed, 2015)
[14] Dennis Pearce, Administrative Appeals Tribunal, (LexisNexis Butterworths, 4th ed, 2015) paragraph 16.4
[15] Rule (or Article 4) arose from a variation to Rule 4 of the Default Rules in Schedule 4 to the UTM Act, which required express permission of the owners corporation by unopposed resolution. The variation was passed by the owners corporation in 2006
[16] Exhibit R1 (witness statement of Lawrence Lynch) page 42
[17] Ainsworth v Albrecht [2016] HCA 40
[18] Ainsworth v Albrecht [2016] HCA 40 [47]-[53]
[19] Ainsworth v Albrecht [2016] HCA 40 [56]-[57]
[20] Lanfranchi & Owners Unit Plan 806 [2011] ACAT 73
[21] Lanfranchi & Owners Unit Plan 806 [2011] ACAT 73 [21]
[22] The Owners - Unit Plan No 396 v Uren & Blundell [2017] ACAT 100 [66]
[23] The Owners - Unit Plan No 396 v Uren & Blundell [2017] ACAT 100 [57]
[24] Clews v The Owners - Units Plan 3069 [2018] ACAT 82 [67] - this decision is under appeal
[25] Ainsworth v Albrecht [2016] HCA 40 [58]
[26] Here, I am referring to opposition to a motion for a unit owner to erect or alter a structure in or on their unit or on the common property
[27] Transcript of proceedings 15 November 2018 page 30, lines 45-47
[28] Mr Flint described a units plan using this term, appropriately in my view, and I adopt it: Transcript of proceedings 15 November 2018 page 95, lines 6-7
[29] Exhibit A2 (witness statement of Ted Streatfeild) paragraphs [29]-[30]
[30] Transcript of proceedings 15 November 2018 page 32, lines 13-45
[31] Transcript of proceedings 15 November 2018 page 33, lines 7-25
[32] Transcript of proceedings 15 November 2018 page 44, lines 18-20
[33] Exhibit R1 (witness statement of Lawrence Lynch) page 75
[34] Exhibit R1 (witness statement of Lawrence Lynch) page 75
[35] Exhibit R1 (witness statement of Lawrence Lynch) page 75
[36] Exhibit R11 (witness statement of Caroline McCabe) paragraphs 4-7
[37] Exhibit A1 (witness statement of Eric Martin, AM) paragraph 6
[38] Exhibit A2 (witness statement of Ted Streatfeild) paragraph 28; Transcript of proceedings 15 November 2018 page 14, lines 4-6
[39] Transcript of proceedings 15 November 2018 page 16, lines 8-11. Mr Martin might here have intended to refer to Unit 3
[40] Transcript of proceedings 15 November 2018 page 17, line 20
[41] Transcript of proceedings 15 November 2018 page 18, lines 20-22
[42] Exhibit A2 (witness statement of Ted Streatfeild) paragraph 5; Transcript of proceedings 15 November 2018 page 13, line 34
[43] Exhibit A2 (witness statement of Ted Streatfeild) paragraph 28
[44] Transcript of proceedings 15 November 2018 page 42, lines 1-3
[45] Transcript of proceedings 15 November 2018 page 42, lines 28-31
[46] Transcript of proceedings 15 November 2018 page 42, lines 32-40
[47] Exhibit R7 (witness statement of Paul Cohen) paragraph 22
[48] Exhibit R7 (witness statement of Paul Cohen) paragraph 25
[49] Exhibit R7 (witness statement of Paul Cohen) paragraphs 13e, 14 and 15
[50] Exhibit R7 (witness statement of Paul Cohen) paragraph 26
[51] Exhibit R7 (witness statement of Paul Cohen) paragraphs 22-26
[52] Transcript of proceedings 15 November 2018 page 62, lines 27-35; page 63, lines 1-9; page 69, lines 20-24
[53] Ainsworth v Albrecht [2016] HCA 40 [103]
[54] The upper floor plans show 4 bedrooms and a study, rather than 5 bedrooms, but the study to be of a similar size to bedroom 4
[55] Transcript of proceedings 15 November 2018 page 74, lines 30-35
[56] Exhibit R2 (witness statement of Neil McCabe) paragraph 11
[57] Exhibit A2 (witness statement of Ted Streatfeild) paragraph 37
[58] Exhibit A2 (witness statement of Ted Streatfeild) paragraphs 39
[59] R1 (witness statement of Lawrence Lynch) page 76
[60] Exhibit R7 (witness statement of Paul Cohen) paragraphs 13c and 13e
[62] The Tribunal conducted a view of Unit 5 and the other units in Units Plan 421. The Tribunal observed that the applicant has already conducted significant demolition and earthworks that, the Tribunal understands, were not approved
[63] Transcript of proceedings 15 November 2018 page 81, lines 1-26
[64] Exhibit R7 (witness statement Paul Cohen) paragraph 34
[65] Exhibit A2 (witness statement of Mr Streatfeild) paragraphs 19 and 33
[66] Exhibit A2 (witness statement of Mr Streatfeild) paragraph 19
[67] Transcript of proceedings of proceedings page 35, lines 22-31
[68] Exhibit R7 (witness statement of Paul Cohen) paragraph 38
[69] Ainsworth v Albrecht [2016] HCA 40 [57]
[70] Transcript of proceedings 15 November 2018 page 12, lines 12-19
[71] Exhibit R1 (witness statement of Lawrence Lynch) page 78
[72] Ainsworth v Albrecht [2016] HCA 40 [107]
[73] Exhibit R1 (witness statement of Lawrence Lynch) page 79
[75] Exhibit R1 (witness statement of Lawrence Lynch) page 80
[76] Transcript of proceedings 15 November 2018 page 109, lines 42-44
BONANSEA
THE OWNERS - UNITS PLAN NO 421
Cases cited: Ainsworth v Albrecht [2016] HCA 40
Clews v The Owners - Units Plan 3069 [2018] ACAT 82
Lanfranchi & Owners Unit Plan 806 [2011] ACAT 73
Nash v the Owners - Unit Plan 2413 & Ors [2018] ACAT 54
Rampala v The Owners - Units Plan 1330 [2018] ACAT 35
The Owners - Unit Plan No 396 v Uren & Blundell [2017] ACAT 100
Uren & Anor v The Owners - Units Plan No 396 [2017] ACAT 51