[2024] QCAT 88
General information, not legal advice.
Queensland Civil and Administrative Tribunal
2024-02-20
Member P
Original judgment source is linked above.
This matter was heard and determined on the papers pursuant to s 32 of the Queensland Civil and Administrative Tribunal Act 2009 (Qld)
The Body Corporate's pleaded case and its arguments on the Application to dismiss
...the committee that made the decision to approve the transfer on 25 May 2015 was not properly constituted. Only one member of the committee was validly elected, or did not hold a conflict of interest. The decision of the committee that day, therefore, was at all times void.
There was no reference to, analysis of or consideration given to the operation of Section 310 of the BCCM Act which I deal with in paragraph 55 of these reasons, nor to any legal principles applicable to irregular acts engaged in by Committees in dealings with third parties. It is a judgement that depends to a significant degree on findings made in other adjudications.
Issues of legal principle - dismissal under s 47 of the QCAT Act
(1) This section applies if the tribunal considers a proceeding or a part of a proceeding is -
(a) frivolous, vexatious or misconceived; or
(b) lacking in substance; or
(c) otherwise an abuse of process.
(2) The tribunal may - (a) if the party who brought the proceeding or part before the tribunal is the Applicant for the proceeding, order the proceeding or part be dismissed or struck out; ...
That level of satisfaction may not require the meeting of as high a test as that posited by Barwick C in General Steel: 'that the case for the plaintiff is so clearly untenable that it cannot possibly succeed'. The more appropriate inquiry is in terms of the Rule itself; that is, whether there exists a real, as opposed to a fanciful, prospect of success. However, it remains, without doubt, the case that: 'great care must be exercised to ensure that under the guise of achieving expeditious finality a plaintiff is not improperly deprived of his opportunity for a trial of the case.
It may be clear as a matter of law at the outset that even if a party were to succeed in proving all the facts that he offers to prove he will not be entitled to the remedy that he seeks....The simpler the case the easier it is likely to be [to] take that view and resort to what is properly called summary judgment but more complex cases are unlikely to be capable of being resolved that way without conducting a mini trial on the documents without discovery and without oral evidence. As Lord Woolf MR said in Swain's case [2001] 1 All ER 91 at 95, that is not the object of the rule. It is designed to deal with cases that are not fit for trial at all.
Pursuant to s 47(2)(a) the tribunal may exercise its discretion to strike out or dismiss a proceeding or part of a proceeding brought by an Applicant... The power should be exercised sparingly so that claims that are groundless or which lack merit are barred. If there is a real question to be tried then dismissal at an interlocutory stage is not appropriate.
In exercising the discretion it is necessary to consider whether it is either necessary or appropriate to do so in the circumstances......The exercise of the discretion to strike out requires a consideration of the factors relevant in an application under UCPR r 171: ensuring that relevant documents filed in the Tribunal disclose a reasonable cause of action or defence, do not prejudice or delay the fair trial of the proceeding, are not unnecessary or scandalous, frivolous or vexatious or otherwise an abuse of process.
Section 47 of the QCAT Act is, in effect, a summary judgment power. In an application for summary judgment under the Uniform Civil Procedure Rules 1999 (Qld) current QCAT President Daubney J found in Elderslie Property Investments No 2 Pty Ltd v Dunn:
... the court needs to be satisfied not only that the defendant has no real prospect of successfully defending all or a part of the claim, but also that 'there is no need for a trial of the claim or the part of the claim'.
Identifiable issues which have sufficient merit to justify a hearing/trial
If a person honestly and without notice of an irregularity enters into a transaction with a member of the committee for the Body Corporate for a community titles scheme or a person who has apparent authority to bind the Body Corporate, the transaction is valid and binding on the Body Corporate.
The jurisdiction of this tribunal is to make an award of damages
"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;
(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.
[102] The Applicant here concedes that on any view of the matter, the relief sought in the proposed amended application for "AN ORDER that the Respondent repay to the Body Corporate the sum of $[TBA] representing the 10% Increases paid to it between 2015 up to the date of judgment" is one which is properly before this Tribunal and which it has jurisdiction to hear, although those provisions do not enlarge the jurisdiction of the Tribunal, and that they are to be exercised in aid of the jurisdiction otherwise conferred on the Tribunal, the jurisdiction in s.149B must be read as including the power to resolve the dispute by reference to normal and reasonable remedies, and that the Tribunal has power under s.9(4) of the QCAT Act to do all things necessary or convenient before exercising its jurisdiction.
[109] In my view, in the present context, this Tribunal can exercise the powers to declare the agreement either valid or void or voidable and make any other orders that would necessarily flow from that, as well as the grant of any of the alternative forms of relief which are more conventional and in nature and involve an interpretation of a prime facie valid agreement.
[1] Gray v Morris [2004] QCA 5; [2004] 2 Qd R 118 at 1333 per PD McMurdo J (as his Honour then was) with whom McPherson JA agreed.
[2] Coldham Fussell v Commissioner of Taxation [2011] QCA 45 per White JA at [102].
[3] Rich v CGU Insurance Ltd [2005] HCA 16; (2005) 79 ALJR 856, 859 at [18] - [19.
[4] [2003] 1 Qd R 259; [2002] QCA 224 per Holmes J (with the concurrence of Davies JA and Mullins J) at 264-265.
[5] Deputy Commissioner of Taxation v Salcedo [2005] QCA 227; [2005] 2 Qd R 232 at [13] per Williams JA.
Dunlop
The Body Corporate for Port Douglas Queenslander [2024] QCAT 88
General Steel Industries Inc v Commissioner for Railways (NSW) [1964] HCA 69; (1964) 112 CLR 125
Dey v Victorian Railways Commissioners [1949] HCA 1; (1949) 78 CLR 62
Cox v Journeaux (No 2) [1935] HCA 48; (1935) 52 CLR 713
Shaw v State of New South Wales [2012] NSWCA 102
Agar v Hyde [2000] HCA 41; (2000) 201 CLR 552
Gray v Morris [2004] QCA 5; [2004] 2 Qd R 118
Coldham Fussell v Commissioner of Taxation [2011] QCA 45
Queensland University of Technology v Project Constructions (Aust) Pty Ltd (in liq) [2003] 1 Qd R 259; [2002] QCA 224
Rich v CGU Insurance Ltd [2005] HCA 16; (2005) 79 ALJR 856
Beck v Kerry M Ryan Pty Ltd [2019] QCAT 38
Felstead v Bundaberg Homes Pty Ltd [2016] QCAT 294
Murtagh v QBCC [2018] QCAT 258
(1964) 112 CLR 125
(1949) 78 CLR 62
(1935) 52 CLR 713
(2000) 201 CLR 552
(2005) 79 ALJR 856