Condor [2025] QBCCMCmr 135 (29 April 2025)

Act, ss 20, 281; Standard Module, ss 172-174, 180.

1. Within two months, the body corporate must repair or replace the windows and associated fittings in the southern and western walls of lot 32 so they no longer admit water.
2. Within two months, the body corporate must also carry out the following work to a maximum value of $75,000:
   1. eradicate any mould within lot 32 in compliance with the Institute of Inspection, Cleaning & Restoration Certification's S520 Standard for Professional Mould Remediation, and
   2. repair Ms Melanie's property (including lot 32 itself) that has been damaged by water and mould, or replace it with items of equivalent value as agreed with Ms Melanie.
3. The application is otherwise dismissed.

• [1] Ms Melanie of lot 32 is represented by her daughter and co-occupant of the lot, Ms Carver. Ms Carver says lot 32 suffers water ingress through its southern and western walls approximately every 12-18 months when strong winds and rain strike the building from the south. Water also entered the lot from above due to a plumbing leak in 2019. Ms Carver says the water ingress has caused mould within the lot, compromising the health of its inhabitants. She seeks orders in the following terms:

1. Immediate containment (barrier) & eradication of mould colonies and infections via Eco Mould Removals - see attached EMR_Quote_Dec2024 & EMR_ScopeofWorks_Dec2024.

2. Invasive investigations (conducted behind containment barriers) to recify moisure leakage and build-up in both the Southern & Western walls around ALL window frames..

3. Rectification, repairs, sanitation and/or replacement of all effected items including, but not limited to all surfaces, soft items, curtains & carpets as highlighted in EMR scope of works.

4. Independent / 3rd Party scientific verification of total mould eradication.

5. All persons exposed to this mould (owner & both affected parties) to be clinically tested using MYCOTOX PROFILE urine test.

I want the body corporate to reimburse me $6,363.60 (costs for Amzocone Report; humidifier; air purifier and solicitor costs) - Receipts attached

I want the body corporate to pay for the replacement of all mould damaged goods and accommodation costs when remediation works are carried out.

• [2] The following evidence was submitted with respect to the sources of the water ingress to lot 32:
  1. A letter from Gold Coast Remedial Waterproofing (GCRW) on 5 February 2025 that referred to visits to lot 32 in 2014-15 during heavy rains that found water ingress and high moisture readings around window frames in the southwest corner of the lot. GCRW recommended "external water tests and removal of window sill to show extent of water ingress", but did not receive a work order from the body corporate to carry that out. Upon a further inspection on 29 January 2025, GCRW found "the window sill is now rotten and moisture is quite evident" and once again recommended invasive investigations and water tests.
  2. A mould inspection report by AMC Ozone based on an inspection conducted on 19 May 2020 that noted the plumbing leak from the lot above the previous year, which had caused water to flood down "into the kitchen, office and laundry, with water ingress behind the kitchen cupboards and adjoining walls from the kitchen, laundry and office (dining) area". AMC Ozone also observed evidence of water ingress "on southwest side of building in main bedroom and dining room windows and sills", and peeling paint on the ceilings of the laundry and ensuite due to inadequate ventilation.
  3. An email from the body corporate's insurance broker to Ms Carver's lawyer on 12 June 2020 that mentioned that Advanced Building, who had inspected the lot to assess an insurance claim relating to the 2019 plumbing leak, "reported to the Insurer that there are also signs of water damage to the exterior wall in the dining room area which they suspect is an issue with the sealing of the window outside the building with water is making its way through the failed seals and tracking down the window sill. They believe this issue is more likely the cause of the ongoing mould issue."
  4. An Australian Leak Detection report of 28 July 2023 that found no faults in the plumbing within lot 32 but noted "signs of water damage at the bottom corners of the windows on the western side of the building, as well as cracks/paint peeling in the hallway and main bathroom, located at the top of the walls and ceiling".
  5. An email of 10 April 2025 from the principal engineer of Structural Diagnostics who inspected the windows in the southern and western walls and reported that "the previous window replacement project was completed to a substandard level...[and] requires removal of the existing windows, modification of the existing window openings, compliant waterproofing of the opening, possible replacement of some window components, and reinstallation where possible of the existing window suite. Additionally, rectification of weatherproofing details at precast panel joints and the existing façade coating...is required."
• [3] Water has clearly been entering lot 32 via the windows in the southern and western walls, and on one occasion from a burst pipe in the lot above. The body corporate must rectify the former as the windows are in a wall that separates lot 32 from common property airspace outside, and the body corporate must maintain in good condition "doors, windows and associated fittings situated in a boundary wall separating a lot from common property".[1]
• [4] Details of the 2019 plumbing leak are scant, though the pipe was repaired by the body corporate, indicating that it considered it to be common property utility infrastructure that it was obliged to maintain in good condition.[2]

• [5] In 2020, AMC Ozone found mould throughout the lot. A mycologist from MouldLab analysed samples collected by AMC Ozone and found species of mould that were "immuno-compromising and/or allergenic and/or mycotoxin producers" and recommended remediation in compliance with the Institute of Inspection, Cleaning & Restoration Certification's S520 Standard for Professional Mould Remediation ("the IICRC S520").[3]
• [6] In June 2023, another laboratory tested samples collected from lot 32 by Eco Mould Removal and found "high levels of Aspergillus/Penicillium like spores in all indoor samples...elevated levels of Cladosporium...in the kitchen and living room...[and] elevated levels of ascospores...in the master bedroom and kitchen", noting that these varieties include species that are known to be allergenic and/or produce mycotoxins. This lab also recommended remediation according to the IICRC S520.[4]
• [7] A medical certificate dated 25 May 2020 notes that Ms Melanie has "toxic mold syndrome". Another undated medical certificate says that two occupants of lot 32 are being treated for respiratory infections.
• [8] The body corporate engaged a company (Electrodry) to treat the mould in November 2023. Ms Melanie's representatives say the treatment was ineffective, but they submitted no direct evidence of that; only an email exchange that indicated the company was called back to make a second attempt at eradicating the mould.

• [9] Where an applicant suffers damage to their property due to a contravention of the Act, an adjudicator may order the responsible party to carry out repairs to a maximum value of $75,000 or pay reimbursement for repairs to a maximum value of $10,000.[5] The body corporate has breached its obligation to maintain the windows in the southern and western walls, and common property utility infrastructure in the lot above, in good condition. That has caused mould and water damage to Ms Melanie's lot and contents that the body corporate must correct at its cost.
• [10] There is some uncertainty about the necessary repairs and their cost. Ms Melanie has asked that the body corporate carries out mould eradication in accordance with a quotation from Eco Mould Removals for $23,721.50. But the quotation has expired, it seems to have been based on an assessment conducted in mid 2023 (prior to Electrodry's work), and it included prices per item cleaned without specifying how many items there are (as it seems to be unknown which items will be salvageable until work begins).
• [11] I will not prescribe that the body corporate must use Eco Mould Removals in any event. There may be other suitable contractors who can offer a better service or price. Expenditure at this level would usually trigger the requirement to obtain a second quotation.[6] That obligation will not arise in this case as the expenditure will be necessary to comply with an order of an adjudicator, so the committee will not need to seek authority at a general meeting and present two quotations.[7] Nevertheless, I will not prevent the body corporate from attempting to get a better price, so long as the work complies with the IICRC S520. That obviously introduces further uncertainty about the final scope and cost of the work.
• [12] Ms Melanie also does not yet know which items of her property will be able to be restored during mould remediation, and which will require replacement. Consequently, she has not presented any quotations for those items that will require replacement. She has also presented no quotations for some work that she knows will be necessary, such as laying new carpet and repainting.
• [13] That means I cannot be specific about the precise repairs or replacement that must be carried out by the body corporate, and I cannot be sure that it will cost $75,000 or less. The best I can do in the circumstances is order the body corporate to eradicate any mould within the lot and repair or replace any damaged property up to a maximum value of $75,000. Anything beyond that will need to be pursued by Ms Melanie in a court of competent jurisdiction.

• [14] While I can appreciate Ms Melanie's desire for certainty given the risk to her health posed by an ongoing mould infestation, I can see no basis for an order requiring the body corporate to not only eradicate the mould, but then conduct further independent scientific testing to prove it is gone.
• [15] The body corporate will be required to eradicate any mould. If any remains, it will not have complied with that order. Ms Melanie could then pursue enforcement before the Magistrates Court, where she would bear the burden of demonstrating the body corporate's non-compliance.

• [16] Similarly, I can see no basis for an order requiring the occupants of lot 32 to be urine-tested. I assume the intention is that the body corporate would fund the testing, but I do not see what that would achieve. Irrespective of whether mould exposure can be detected in the urine of the occupants of lot 32, the body corporate must eradicate any mould within the lot caused by its failure to keep the windows in the southern and western walls in good condition.

• [17] Ms Melanie seeks reimbursement of costs she has incurred, or expects to incur, due to the water ingress, including her expenditure on the AMC Ozone report, a dehumidifier, air purifier, solicitor, and her future accommodation costs while mould remediation occurs. I do not believe I have the power to order reimbursement of losses suffered due to property damage caused by a contravention of the Act beyond those specified at section 281 of the Act.[8]

• [18] For these reasons, the body corporate must repair the windows in the southern and western walls of lot 32 to ensure they are watertight.
• [19] It must also eradicate any mould within the lot in compliance with the IICRC S520, and otherwise repair or replace any of Ms Melanie's property that has been damaged by water or mould, to a maximum value of $75,000.
• [20] The remainder of the application is dismissed.

[1] Standard Module, s 180(2)(a)(ii); registered plan BUP 1922.

[2] Act, s 20; Standard Module, s 180(1).

[3] David Lark, MouldLab, 200944 AMC Ozone - Surfers Paradise Analytical Report, 25 May 2020.

[4] Dr Alexander Wilkie, Indoor Environmental Consulting & Labs, NM6314 Surfers Paradise Mould Analytical Report 19-06-2023, p.4.

[6] Standard Module, ss 173-174.

[7] Standard Module, s 172(1)(d)(ii).

[8] See Degree Apartments [2024] QBCCMCmr 61 at [7]- [11].