[2025] WASAT 45
General information, not legal advice.
State Administrative Tribunal (WA)
2025-05-20
Mr P
Original judgment source is linked above.
ACT : STRATA TITLES ACT 1985 (WA)
CITATION : DUNCAN and THE OWNERS OF 16 MELVILLE PARADE, SOUTH PERTH STRATA PLAN 18919 [2025] WASAT 45
HEARD : 30 AND 31 JANUARY 2025 (FINAL SUBMISSIONS RECEIVED 8 MARCH 2025)
THE OWNERS OF 16 MELVILLE PARADE, SOUTH PERTH STRATA PLAN 18919
Strata Titles Act 1985 (WA) - Scheme dispute - Functions of strata company - Council - Duties of members of council - Application for appointment of Administrator of strata company - Breakdown in relationship between owner and member of council - Factors to consider to appoint Administrator - Whether strata company contravened s 91, s 119 or s 137 - Whether strata company contravened s 104 or s 109 - Whether an unelected council - Whether actions of strata company continuing - Whether strata company incapacitated, beset by difficulties or so dysfunctional as to render it unable to function at a satisfactory level - Tribunal proceeding - Whether necessary for Tribunal to intervene to appoint Administrator - Discretionary power to make declarations and orders to resolve scheme dispute or proceeding
Strata Titles Act 1985 (WA), s 3, s 14, s 47(3), s 91, s 100, s 104, s 109, s 118, s 119, s 137, s 141, s 197(1), s 197(1)(a)(ii), s 197(2), s 197(4), s 199(1), s 200(1), s 200(2)(h), s 200(2)(m), s 200(2)(q), s 202, s 205, s 209, Pt 8 Div 1
Adder Holdings Pty Ltd and The Owners of Harbour Pines Strata Plan 23297 [2022] WASAT 120
Carden and Vallelonga [2017] WASAT 150
Dworakowski and The Owners of 63 Temple Street Victoria Park Strata Plan 26070 [2020] WASAT 45
Fraser and The Owners of Morgan Mews, Strata Plan 45385 [2011] WASAT 102
Gawor and The Owners of Dawesville Caravan Park Old Coast Road Mandurah, Strata Plan No 14644 [2009] WASAT 170
Hockey and Owners of Mount Bakewell Resort Strata Plan 18228 [2013] WASAT 64
Huning and Owners of Glengary 240 Mill Point Road, South Perth, Strata Plan 2684 [2010] WASAT 40
McKinnon v Adams [2003] VSC 116
Parker and The Owners of Timberside Villas - Strata Plan 27426 [2006] WASAT 254
Staley v Pivot Group Pty Ltd [No 6] [2010] WASC 228
A three storey brick building containing 9 residential units situated on Lot 6 of portion of Perth suburban Lot 73 on Diagram 75496.
(a) various complaints were withdrawn by Ms Duncan on the basis of a work order issued by the strata company for various works to be completed by 1 August 2023; and
(b) the maintenance and/or replacement of the garage doors complaint was withdrawn by Ms Duncan on the basis that that the strata company acknowledged this issue required the attention of a general meeting.
Did the council acting for the strata company contravene the ST Act, in particular s 91, s 119 and s 137, such that it is appropriate for the Tribunal to appoint an administrator?
The Tribunal appoint a suitable person (administrator) to perform the duties of the strata company.
(a) whether the actions of the strata company satisfy the test of 'dysfunction'?
(b) whether the actions of the strata company are continuing? and
(c) whether the findings in relation to (a) and/or (b) above warrant the intervention of an administrator?
(a) who should be the appointed administrator? Has that person given written consent to be appointed administrator?
(b) which of the scheme functions is the administrator to perform?
(c) what should the conditions of appointment of the administrator be, if any? and
(d) what should be the term of appointment of the administrator?
Whether the actions of the strata company are 'dysfunctional'?
(g) various miscellaneous powers including enforcing compliance with by-laws, general powers and limitation on the exercise of powers.
... does not differentiate between [the] statutory obligations. Nowhere in the [ST] Act does it say which statutory obligations are important enough to determine dysfunction and which statutory obligations are just general guidelines and don't really need to be adhered to [by] the strata company to be considered functional.
You can't be dysfunctional in some of these obligations, and not in others, and be considered functional. You can't be half dysfunctional.
(added emphasis)
administrator of a strata company means a person appointed by the Tribunal as an administrator of the strata company under section 205[.]
(1) An order of the Tribunal appointing an administrator of a strata company may specify conditions of appointment of the administrator.
(2) If the Tribunal makes an order appointing an administrator of a strata company -
(a) no person other than the administrator may, while the order remains in force, perform a function that the administrator is authorised to perform under the order; and
(b) any act or thing done or suffered by the administrator in the performance of a function under the order has the same effect as it would have had if the order had not been made and it had been done or suffered by the person or body who, but for the order, would have been entitled or required to perform the function; and
(c) the Tribunal may, by further order, vary or revoke the appointment.
(3) An administrator of a strata company appointed by the Tribunal must, after performing a function under the order -
(a) make a written record specifying the function and the manner of its performance; and
To justify the appointment of an administrator the body corporate [council] must be affected by some incapacity or must be acting so dysfunctionality as to render the provision of appropriate services to unit holders [owners] and/or the care of the common property either non-existent, or so beset by difficulties as to render the body corporate [council] unable to function at what the Court [Tribunal] considers to be a satisfactory level.
There may or may not be financial difficulties or even financial impropriety affecting the body corporate's [council's] capacity to function but there must be some deficiency in its operational capacity sufficient to justify the Court's [Tribunal's] intervention in the interest of some or all of the unit holders [owners].
(added emphasis)
Whether strata company contravened s 91 of the ST Act?
(a) rectify a maintenance item for the roof panels;
(c) explain why paving had been pulled up and re-laid at significant cost;
(e) rectify maintenance item for the security of pedestrian and driveway gates;
(f) discuss concerns over decision-making in relation to painting of building;
(g) rectify maintenance item for building structural cracks;
Whether repairs and maintenance on common property done?
The overall condition of the site is good for buildings of this age. Elements of previous maintenance were observed throughout the development. Only a few items of high to medium priority were observed.
The main impression was that the fabric of the building was aging according to its design lifespan and that only routine replacement of these elements would be required to maintain the standard of the building fabric.
The property appears to be well maintained for its age. I have more common property lighting (some of which can be as simple as solar lights), the garbage bin area, replacement or treatment of any broken asbestos fencing, maintenance of the pool and equipment, stair nosings or non-slip finishes for additional safety, brickwork, timberwork and render repairs if required, handrails have been allowed as a safety barrier and also to prevent a fall hazard, upgrading the electrical boards with Residual Current Devices (kill switches) if needed, external painting renewal, maintenance and repairs to the roof, and other covered items of a capital (non-recurrent) nature, amongst other things.
Whether strata company contravened s 119 of the St Act? Whether council contravened s 137 of the ST Act?
(a) made unreasonable and onerous requirements in requiring her to in relation to investigating and proving and repairs of her property when other owners are not put to the same requirements;
(b) repeatedly ignored, rejected or obstructed her requests for council to investigate and repair damage to her lot and the common property;
(c) ignored, fabricated or manipulated the advice and recommendations from contractors as to the cause of the damage to her lot and the common property;
(d) knowingly made false statements, formal opinions and or accusations in relation to the motivation behind requests for investigation and repair of damage to her lot and the common property;
(e) neglected to hold meetings and formally document their assessment or investigations of their decisions; and
(f) failed to communicate, mediate or engage meaningfully to try to resolve the dispute with her.
(a) requests for meetings and mediation to deal with the repair issues;
(d) distribution of materials defaming her to other owners, contractors and strata mangers; and
(e) collusion to orchestrate her removal from and to prevent her future nomination and election to council.
Mr Lawrence and I were more than happy to live and work together. There were no issue[s].
Whether there was a breakdown in relationship between Ms Duncan and Mr Lawrence?
If [Mr Lawrence] had [entirely constrained his activity and communications to a professional level], we wouldn't have been here today, make no mistake. So his behaviour towards Ms Duncan, towards her requests and his dealings with her and the strata company as a result, is the reason we are here.
... didn't believe that he should put all his personal stuff and opinion in an email, that he needed to keep it professional and not just let it all out there. Whether he felt like that or not - he needed to talk to someone if it felt like that, but he needed to remain professional, and that this was all a bit not professional.
... she [Ms Duncan] would be telling me what a bad human Max was, until ... one day, she complained that Max would never do anything for her, and I said, 'I think it's the way you two get along. If you treat him with respect, he treats you with respect.' She said, 'He will do it for you.' I said, No, he will do it for anybody who treats him with respect.' She said, 'You're weak' and we haven't spoken since.
... organised my life around [Ms Duncan and Mr Davis]. I would watch them when [Mr Davis] would come and when he would go and do everything to avoid running into him on the property. So he would leave in the morning, every morning. You could set your watch by it. They would leave, you know, at 7.15 to 7.20 and that's when I would go out or I would try and leave in the morning so didn't run into them.
Whether the strata company refused to clean Ms Duncan's main front bedroom and second bedroom windows?
Whether strata company is forcing Ms Duncan to sell her lot?
... well orchestrated and designed to serve a single purpose, to frustrate, intimidate, gain advantage and power over Mrs Duncan with a stated desire to get her to sell up and leave the strata.
(a) in proceedings before the Magistrates Court where Mr Lawrence testified:[53]
The two of them have brought this apartment and they're waiting to sell the apartment they're in. It's getting painted this - in the next couple of weeks. So this has been going on for a couple of years to get the painting done and I believe they're going to sell it as soon as it has been painted.
(b) in an email to Ms Duncan dated 5 August 2020, Mr Lawrence stated in part:[54]
It didn't escape my attention the timing of the pressure being applied to overrule the democratic COO [council] vote coinciding within 12 months you would have resided here, and thus be exempt from capital gains on the sale of your unit.
Whether the actions of the strata company are continuing?
Whether strata company contravened s 104 and s 109 of the ST Act?
... it was the only way to make sure [Mrs] Duncan isn't allowed back on the [council].
...[b]y then we did not want Ms Duncan on council. She was extremely disruptive, generated excessively long email chains, created a hostile work environment with much unwarranted drama.
Whether death of Mr Lawrence brings into question the merit of the proceeding?
Whether strata company failed to attend to Ms Duncan's garage door?
[T]he garage doors were flagged in the first building maintenance report as needing a replacement in, I believe, off the top of my head, '27, 28 financial year. So there is a building maintenance item, and we have budget and everything in place. We fully intend to replace the doors at that time. Now, [Ms Duncan] submitted a request effectively that her garage door has completely failed. Now, we are at a stage that we do not have budget available, so it does not make economic sense to replace a single garage door. We - this is acknowledged by, I think both parties. We do not also - we also do not have budget to replace a collective of doors right now. So what I have said in my response to Ms Duncan was, we acknowledge that there is an issue with her door. We do not have budget to resolve it right now. I'm looking to adjust the budget next year, such that we can prioritise repairing her door. I'm still exploring the options for how we can budget. This is three years ahead of schedule for - for the context of the room as well. Our current budgets typically come in at around 40,000 per year in actual spend, in terms of what was actually spent. Replacing the garage doors will cost approximately $30,000. So that is effectively an entire year's worth of budget. As such, we do not have budget for it currently.
...
And I - my current plan is perhaps we split that over a couple of financial years, so rather than do all of the doors in one hit, which we can't afford because it's too early, maybe we do, say, four doors now, five doors the following year, see if the contractors will agree to that to spread it time wise a little bit, but give us the bulk rate discount. And we would prioritise Ms Duncan's door first. Obviously, she has reported the most issues. No other owner has reported issues with their doors currently. So we prioritise hers. I go back to the rest of the owners as well, ask if anyone else having issues with their door. We priorities those doors first, and we come back - we still want to do the entire complex, so they all look the same, dealt with the same, we get the bulk rate discount, but we don't have, simply, budget to do it right now.
... the acknowledgement by the respondent [strata company] that the maintenance and/or replacement of the garage doors require the attention of a general meeting.
Whether the intervention of an administrator is required?
(a) a 10 Year maintenance plan from 2020 and the 10 Year Reserve Fund Plan from 2023 in which it is reported that the strata buildings built in 1989 is in good condition for its age;[70]
(c) job register since at least 31 December 2018 showing maintenance work is regularly undertaken including works in progress;[72]
(d) annual general meetings are called, held annually with minutes showing matters raised by owners and voted on with the outcomes recorded. A council is established, and its composition is voted on at the annual general meeting;[73]
(e) budgets are submitted and approved annually, and financial accounts are maintained;[74]
(f) debts are paid and levies are raised and collected;[75]
(g) insurance is sourced and paid annually, and the strata building is currently valued to avoid under insurance;[76] and
(h) an established strata management company is engaged as the strata manager.[77]
This application must be used only as an application of 'last resort' as per Parker. There are a number of other avenues available to the applicant as owner under the ST Act to pursue what appears to be her principal concern, that is, the enforcement of the by-laws and to ensure the strata company undertakes its duties diligently.
Conclusion - Whether the council acting for the strata company contravened the ST Act, in particular s 91, s 119 and s 137, such that it is appropriate for the Tribunal to appoint an administrator?
If [Mr Lawrence] had [entirely constrained his activity and communications to a professional level], we wouldn't have been here today, make no mistake. So his behaviour towards Ms Duncan, towards her requests and his dealings with her and the strata company as a result, is the reason we are here.
... Courts [Tribunals] cannot force neighbours [owners or the strata company and an owner] to act reasonably or sensibly towards each other. A codified conduct regime by the declaration of a court [tribunal] is an inadequate substitute for common courtesy and basic goodwill being recognised as the expected standard of behaviour between ... neighbours [owners or the strata company and an owner].
I certify that the preceding paragraph(s) comprise the reasons for decision of the State Administrative Tribunal.
[3] Initially, Ms Duncan sought orders under s 200(2)(h) of the ST Act against Mr Maxwell Elliot Lawrence (now deceased), Mr Benjamin Zeeb and Ms Dianne Myers as well as orders under s 200(2)((j) and s 200(2)(q) of the ST Act for the termination of the strata manager's contract and the appointment of an administrator of the strata company to perform (unspecified) scheme functions.
[6] Council is defined in s 3 of the ST Act to mean the governing body of the strata company.
[18] HB at page 1,200 and ts 16, 30 January 2025.
[33] Ms Duncan's closing written submissions filed on 8 March 2025 at page 8.
[35] Ms Duncan's closing submissions filed on 8 March 2025 at page 8.
[42] HB at page 512. Mr Lawrence made an application for a restraining order against Mr Davis.
[49] HB at page 259 and ts 172, 31 January 2025.
[50] Ms Duncan's closing submissions filed on 8 March 2025 at page 9.
[56] The strata company's closing submissions at page 5.
[60] ts 17, 30 January 2025 and HB at pages 1,195 and 1,196.
[76] HB at pages 1535 to 1583 and 1717.
[78] ts 28, ts 36 to ts 38, ts 47, ts 48, ts 50, ts 63 to ts 64 and ts 110, 30 January 2025.