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[2017] ACAT 56
ACT Civil and Administrative Tribunal
2017-08-02
Original judgment source is linked above.
(1) This section applies if a tribunal (the requesting tribunal) is dealing with an application.
(3) The requesting tribunal may, on its own initiative or on application by a party, ask the president to allocate 1 or more tribunal members to a tribunal (the ruling tribunal) to give a ruling on a question of law.
(4) If the ruling tribunal gives a ruling on a question of law, the requesting tribunal is bound by the ruling.
Note Question of law includes whether a question is a question of law (see dict).
(5) A ruling tribunal is made up of 1 or more of the following tribunal members allocated by the president:
(b) a senior member who is a lawyer and has been a lawyer for 5 years or more.
(6) However, a ruling tribunal must not contain a tribunal member allocated to the requesting tribunal.
_(1) This section applies if an owners corporation for a units plan has in carrying out its functions incurred an expense, or carried out work, that is necessary because of - _
(a) a wilful or negligent act or omission of a member of the corporation, or an occupier of the member's unit; or
(b) a breach of its rules by a member of the corporation, or an occupier of the member's unit.
(2) The amount spent or the cost of the work is recoverable by the owners corporation from the member as a debt.
(3) If the owners corporation recovers an amount under subsection (2) from a member for an act, omission or breach of an occupier of the member's unit, the member may recover the amount from the occupier as a debt.
work, carried out by an owners corporation, means maintenance or anything else the corporation is authorised under this Act to do.
(1) The parties to an application must bear their own costs unless this Act otherwise provides or the tribunal otherwise orders.
(a) if the tribunal decides an application in favour of the applicant, the tribunal may order the other party to pay the applicant--
(ii) any other fee incurred by the applicant that the tribunal considers necessary for the application; or
Note An example is part of the Act, is not exhaustive and may extend, but does not limit, the meaning of the provision in which it appears (see Legislation Act, s 126 and s 132).
(b) if the tribunal considers that a party to an application caused unreasonable delay or obstruction before or while the tribunal was dealing with the application - the tribunal may order the party to pay the reasonable costs of the other party arising from the delay or obstruction; or
(c) subject to section 49, if a party to the application contravenes an order of the tribunal - the tribunal may order the party to pay the costs or part of the costs of the application to the other party; or
(d) if the application is an application for review of a decision under the Heritage Act 2004, the Planning and Development Act 2007 or the Tree Protection Act 2005, and the tribunal makes an order under section 32 (2) (Dismissing or striking out applications) - the tribunal may order the applicant to pay the reasonable costs of the other party arising from the application.
(3) For subsection (2) (d), reasonable costs of the other party arising from the application include reasonable legal costs but do not include holding costs.
(1) This section applies to a dispute relating to an owners corporation for a units plan between the corporation and any 1 of the following:
(a) an owner or occupier of a unit in the units plan;
(b) the manager (if any) for the owners corporation;
(c) a service contractor for the owners corporation;
(2) A party to the dispute may apply to the ACAT for an order in relation to the other party if the application relates to the dispute.
Do the expenses comprising the debt include legal costs?
and referred to judicial interpretation of comparable provisions in other jurisdictions to reinforce those submissions.
Where a corporation has incurred any expenditure ..., the expenditure ... having been rendered necessary by reason of any wilful or negligent act or omission on the part of, or breach of any provision of its articles by, a member of the corporation, the amount of that expenditure ... is recoverable by it from the member as a debt.
_(1) This section applies if an owners corporation has (in carrying out its functions) incurred any expense, or carried out any work, that is necessary because of - _
(a) a wilful or negligent act or omission of a member of the corporation, or an occupier of the member's unit; or
(b) a breach of its articles by a member of the corporation, or an occupier of the member's unit.
(2) The amount spent or the cost of the work is recoverable by the owners corporation from the member as a debt.
(3) If an owners corporation recovers an amount under subsection (2) from a member for an act, omission or breach of an occupier of the member's unit, the member may recover the amount from the occupier as a debt.
work, carried out by an owners corporation, means maintenance or anything else the corporation is authorised under this Act to do.
Section 31 Recovery of expenditure resulting from member or unit occupier's fault (UTA s 54) - This section is equivalent to a provision in the current UTA. The section has been redrafted consistent with the modern ACT drafting style to make it easier to read and understand. The substance and meaning of the provision is unchanged. (Emphasis added)
80 How does an owners corporation recover unpaid contributions and interest?
(1) An owners corporation may recover as a debt a contribution not paid at the end of one month after it becomes due and payable, together with any interest payable and the expenses of the owners corporation incurred in recovering those amounts.
(2) Interest paid or recovered forms part of the fund to which the relevant contribution belongs. (Emphasis added)
does include legal costs and disbursements. The ordinary meaning of the word plainly extends to money expended by way of legal costs and disbursements; and indeed legal costs and disbursements are likely to be the most significant expenses that an owners corporation incurs in recovering contributions.[17]
Do section 31 UTM Act and section 48 ACAT Act operate independently of each other?
There is judicial authority for both aspects of reasonableness.
As a general principle, section 31 of the UTM Act permits expenses of an owners corporation to be recoverable from the unit holder as a debt provided that the elements of that section are satisfied. In the ACT, because of clear provisions of the ACAT Act and Court Procedures Rules this general principle is subject to the following limitations:
(a) Expenses incurred in bringing proceedings in the Tribunal are not recoverable under section 31 as an expense but in certain circumstances may be sought by way of an order for costs under section 48 of the ACAT Act.
(b) Legal professional costs incurred in proceedings in the Magistrates Court may be recovered as section 31 expenses, despite no order for costs having been made, provided that those costs are 'assessed costs' under Part 2.7 of the Rules.[36]
Consideration and conclusion in relation to Question 1
But that does not mean that the courts of Queensland, when construing the legislation of that State, should slavishly follow judicial decisions of the courts of another jurisdiction in respect of similar or even identical legislation. The duty of courts, when construing legislation, is to give effect to the purpose of the legislation. The primary guide to understanding that purpose is the natural and ordinary meaning of the words of the legislation. Judicial decisions on similar or identical legislation in other jurisdictions are guides to, but cannot control, the meaning of legislation in the court's jurisdiction. Judicial decisions are not substitutes for the text of legislation although, by reason of the doctrine of precedent and the hierarchical nature of our court system, particular courts may be bound to apply the decision of a particular court as to the meaning of legislation. [57]
The responsible tribunal[65] may make any order about costs it considers appropriate for the proceedings.
198 Relationship with Act establishing responsible tribunal
This Division applies despite any provision to the contrary of the Act that establishes the responsible tribunal but does not otherwise limit that Act.
The responsible tribunal may make any order about costs it considers appropriate for the proceedings.
203 Relationship with Act establishing responsible tribunal
This Division applies despite any provision to the contrary of the Act that establishes the responsible tribunal but does not otherwise limit that Act.
If, for the purposes of section 31 of the UTM Act, it was reasonable for the owners corporation to incur expenses of the type described in Question 1 and the amount of each component of the expenses sought is reasonable:
(a) Yes
(b) Yes
(c) Yes
(d) Yes.
The limited power to award costs to a successful applicant does not include the costs of legal representation.
A party to a proceeding cannot recover any costs of the proceeding from another party or anyone else otherwise than by agreement, under a territory law, or an order of the court under a Territory law.
The need for further 'assessment' proceedings to be undertaken could lead to further expense to the owners corporation, however it is in the hands of the owners corporation to obviate the need for further assessment proceedings by simply seeking an order for costs in the relevant proceedings, at the appropriate time. From the interstate authorities, it seems such an application would be considered on a broadly similar basis to that on which a section 31 expense is allowed, and the amount ordered would in the majority of cases be for an amount calculated by reference to the prescribed scale and percentage used in assessment.[74]
XD 1271/2015 The Owners - Units Plan No 300 v Fokas
XD 78/2016 The Owners - Units Plan No 3029 v Liakos
XD 79/2016 The Owners - Units Plan No 3609 v Cetinkaya
XD 85/2016 The Owners - Units Plan No 3182 v Black & McClelland
XD 146/2016 The Owners - Units Plan No 3052 v Jones
XD 205/2016 The Owners - Units Plan No 453 v Rodrigues
XD 238/2016 The Owners - Units Plan No 314 v Andrea Sewell
XD 240/2016 The Owners - Units Plan No 3609 v Albishri
XD 317/2016 The Owners - Units Plan No 1706 v Kennedy
XD 319/2016 Community Title Scheme No 12 v Kulakowski-Rupert
XD 389/2016 The Owners- Units Plan No 3547 v Bonato
XD 390/2016 The Owners - Units Plan No 3889 v George Cupac
XD 401/2016 The Owners - Units Plan No 3889 v Paunovic
XD 427/2016 The Owners - Units Plan No 595 v Xingshun Jiang
XD 460/2016 The Owners - Units Plan No 199 v McLeod
XD 477/2016 The Owners - Units Plan No 2954 v Dukic
XD 488/2016 The Owners - Units Plan No 4006 v Melissa Tominac
XD 505/2016 The Owners - Units Plan No 3492 v Robson & Leach
XD 549/2016 The Owners - Units Plan No 3432 v Pomroy
XD 552/2016 The Owners - Units Plan No 261 v Wheildon
XD 621/2016 The Owners - Units Plan No 3788 v Black & McClelland
XD 633/2016 The Owners - Units Plan No 199 v McLeod
XD 637/2016 The Owners - Units Plan No 371 v Nabua & Anor
XD 638/2016 The Owners - Units Plan No 1447 v Carroll
XD 648/2016 The Owners - Units Plan No 3892 v TRPE Pty Limited
XD 665/2016 The Owners - Units Plan No 3889 v Min Wang
XD 726/2016 The Owners - Units Plan No 2179 v Daniel Ashcroft
XD 811/2016 Community Title Scheme No. 10 v Periyasamy
XD 846/2016 The Owners - Units Plan No. 1246 v Dixon
XD 873/2016 The Owners - Units Plan No 546 v Donnelly & Hamilton
XD 876/2016 The Owners - Units Plan No 3802 v Ilhan
XD 892/2016 The Owners - Units Plan No 3515 v Nilsson
[1] The Owners - Units Plan 840 v Richardson [2015] ACAT 77
[2] ACT Civil and Administrative Tribunal Act 2008 section 9
[3] ACT Civil and Administrative Tribunal Act 2008 section 11
[4] ACT Civil and Administrative Tribunal Act 2008 section 15
[5] ACT Civil and Administrative Tribunal Act 2008 section 16
[6] ACT Civil and Administrative Tribunal Act 2008 section 18
[7] Proprietors Units Plan 52 v Gold [1993] FCA 385; (1993) 44 FCR 123
[8] Section 29(1) set out the general rule that the Court "shall not make any order in relation to the costs of proceedings"
[9] Re Gold (A Bankrupt); Gold v The Proprietors - Units Plan No 52 and Anor [1996] FCA 1274
[10] Re Gold (A Bankrupt); Gold v The Proprietors - Units Plan No 52 and Anor [1996] FCA 1274 at [33]
[11] Ford v The Owners Units Plan 259 [2012] ACAT 59
[12] Coshott v The Owners of Strata Plan No 48892 [2006] NSWSC 308
[13] Coshott v The Owners of Strata Plan No 48892 [2006] NSWSC 308 at [78]
[14] Coshott v The Owners of Strata Plan No 48892 [2006] NSWSC 308 at [79], [80]
[15] Coshott v The Owners of Strata Plan No 48892 [2006] NSWSC 308 at [81]- [83]
[16] The Owners - Strata Plan No 36131 v Dimitriou (2009) NSWLR 370 (Hodgson JA, Basten JA, Handley AJA)
[17] The Owners - Strata Plan No 36131 v Dimitriou (2009) NSWLR 370, 381 at [33]
[18] The Owners - Strata Plan No 36131 v Dimitriou (2009) NSWLR 370, 381 at [34]
[24] Owners of Strata Plan 50164 v O'Connor [2010] FMCA 833
[25] Owners of Strata Plan 50164 v O'Connor [2010] FMCA 833 at [48]- [50]
[26] Furthermore, if there is open on the words of the later Act a construction by which the earlier Act is saved from repeal, that construction should be accepted
[27] The Owners - Strata Plan No 36131 v Dimitriou (2009) NSWLR 370, 382 at [37], 384 at [40]
[28] The Owners - Strata Plan No 36131 v Dimitriou (2009) NSWLR 370, 402 at [130], [132]
[29] The Owners - Strata Plan No 36131 v Dimitriou (2009) NSWLR 370, 388 at [63], [64]. Basten JA would also have excluded any amount of legal costs which could not be, was not or would not be ordered by a court or tribunal of competent jurisdiction to be paid to an owners Corporation's costs incurred in recovery of contributions interest: 399 at [112]
[30] The Owners - Strata Plan No 36131 v Dimitriou (2009) NSWLR 370, 395 at [98]
[31] Ford v The Owners Units Plan 259 (Units Titles) [2012] ACAT 59 at [5], [8]
[32] The Proprietors Units Plan No 52 v Gold [1993] FCA 385; (1993) 44 FCR 123, 126
[33] Submission at [31], citing Gold [1993] FCA 385; (1993) 44 FCR 123, 126, endorsing the decision of Allen J in State Drug Crime Commission (NSW) v Chapman (1987) 12 NSWLR 447, 452_,_ adopting Pollock CB in Attorney General v Walker [1849] EngR 223; (1849) 154 ER 833
[34] The Owners - Units Plan 840 v Richardson [2015] ACAT 77 at [1], [2], [19]-[27]
[35] The Owners - Units Plan 840 v Richardson [2015] ACAT 77 at [33]
[36] The Owners - Units Plan 840 v Richardson [2015] ACAT 77 at [118]
[37] The Owners - Units Plan 840 v Richardson [2015] ACAT 77 at [40]
[38] The Owners - Units Plan 840 v Richardson [2015] ACAT 77 at [41]- [44], [50]-[58]
[39] ACT Civil and Administrative Tribunal Act 2008 section 18
[40] The Owners - Units Plan 840 v Richardson [2015] ACAT 77 at [49]
[41] The Owners - Units Plan 840 v Richardson [2015] ACAT 77 at [54]
[42] The Owners - Units Plan 840 v Richardson [2015] ACAT 77 at [54]- [57]
[43] The Owners - Units Plan 840 v Richardson [2015] ACAT 77 at [59]
[44] The Owners - Units Plan 840 v Richardson [2015] ACAT 77 at [61]
[45] The Owners - Units Plan 840 v Richardson [2015] ACAT 77 at [62]
[46] The Owners - Units Plan 840 v Richardson [2015] ACAT 77 at [64], [70], [71]
[47] CIC Australia Ltd v Australian Capital Territory Planning and Land Authority [2013] ACTSC 96; (2013) 277 FLR 26
[48] The Owners - Units Plan 840 v Richardson [2015] ACAT 77 at [66]- [68]
[49] Body Corporate for Sunseeker Apartments CTS 618 v Jasen [2012] QDC 51
[50] The Owners - Units Plan 840 v Richardson [2015] ACAT 77 at [74]- [75]
[51] The Owners - Units Plan 840 v Richardson [2015] ACAT 77 at [76]
[52] The Owners - Units Plan 840 v Richardson [2015] ACAT 77 at [78] citing for example the Legal Profession Act 2006 section 434 and the Health Practitioner Regulation National Law (ACT) sections 198 and 203
[53] The Owners - Units Plan 840 v Richardson [2015] ACAT 77 at [79]- [83]
[54] The Owners - Units Plan 840 v Richardson [2015] ACAT 77 at [84]
[55] The Owners - Units Plan 840 v Richardson [2015] ACAT 77 at [85]- [94]
[58] [2008] HCA 5; (2008) 233 CLR 259, 270 at [31]
[59] CIC Australia Ltd v Australian Capital Territory Planning and Land Authority [2013] ACTSC 96; (2013) 277 FLR 26
[60] CIC Australia Ltd v Australian Capital Territory Planning and Land Authority [2013] ACTSC 96; (2013) 277 FLR 26 at [37]
[61] CIC Australia Ltd v Australian Capital Territory Planning and Land Authority [2013] ACTSC 96; (2013) 277 FLR 26 at [82]
[62] The Owners Units-Plan 840 v Richardson [2016] ACAT 77 at [85] - [93]
[63] Coshott v The Owners of Strata Plan No 48892 [2006] NSWSC 308 at [79], [80]
[64] See the Owners - Strata Plan No 36131 v Dimitriou (2009) NSWLR 370, 401 at [127], [128]
[65] The Tribunal is the 'responsible tribunal' for this purpose
[66] Re Gold (A Bankrupt); Gold v The Proprietor - Units Plan No 52 and Anor [1996] FCA 1274 at [6]
[67] CIC Australia Ltd v Australian Capital Territory Planning and Land Authority [2013] ACTSC 96; (2013) 277 FLR 26 at [82]
[68] Coshott v The Owners of Strata Plan No 48892 [2006] NSWSC 308 at [95]
[69] The Owners - Strata Plan No 36131 v Dimitriou (2009) NSWLR 370, [46]-[48]. See also Handley JA at [138]-[143], and Basten JA (contra) at [106], [107]
[70] The Owners - Strata Plan No 36131 v Dimitriou (2009) NSWLR 370 at [49]
[71] The Owners - Units Plan 840 v Richardson [2015] ACAT 77 at [95]- [98], [101]
[72] The Owners - Units Plan 840 v Richardson [2015] ACAT 77 at [99], [100]
[73] The Owners - Units Plan 840 v Richardson [2015] ACAT 77 at [103], [104], [110]
[74] The Owners - Units Plan 840 v Richardson [2015] ACAT 77 at [105]
Barras v Aberdeen Trawling and Fishing Co Limited [1933] AC 402
CIC Australia Ltd v Australian Capital Territory Planning and Land Authority [2013] ACTSC 96; (2013) 277 FLR 26
Coshott v The Owners of Strata Plan No 48892 [2006] NSWSC 308
Ford v The Owners Units Plan 259 [2012] ACAT 59
Goodwin v Phillips [1908] HCA 55; (1908) 7 CLR 1
Marshall v Director General, Department of Transport [2001] HCA 37; (2001) 205 CLR 603
Owners of Strata Plan 50164 v O'Connor [2010] FMCA 833
Proprietors Units Plan 52 v Gold [1993] FCA 385; (1993) 44 FCR 123
Re Gold (A Bankrupt); Gold v The Proprietors - Units Plan No 52 and Anor [1996] FCA 1274
Te v Minister for Immigration and Ethnic Affairs [1999] FCA 111
The Owners - Units Plan 840 v Richardson [2015] ACAT 77
Walker Corporation Pty Limited v Sydney Harbour Foreshore Authority [2008] HCA 5; (2008) 233 CLR 259
(2013) 277 FLR 26
(1908) 7 CLR 1
(2001) 205 CLR 603
(1993) 44 FCR 123
(1987) 12 NSWLR 447
(2008) 233 CLR 259