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[2018] ACAT 86
ACT Civil and Administrative Tribunal
2018-09-05
Member Daniel
Original judgment source is linked above.
Under clause 129(1)(e)(ii) of the UTMA that two resolutions of the Respondent's Executive Committee (EC) (namely motion 1 and motion 2 of the meeting held on 13 August 2014) are void for irregularity given that the committee had no authority to give the approvals.
Under clause 129(1)(3) of the UTMA, that the resolution taken at the executive committee meeting held on 13.8.2014 to sponsor the various applications leading to the issue of a certificate of occupancy and use to Dockside Units 127&127 ... is void for irregularity given that 1) The [executive committee] had no authority under territory law, nor approval from the owners corporation members, to make the applications and 2) some of the information offered within the applications is either incomplete, incorrect or misleading.
Under clause 129(1)(c)(iii) of the UTMA that a rule of the owners corporation (Commercial House Rule 14(4): car spaces are not to be used as storage unless approved by the EC) is invalid for irregularity given that the EC has no authority to deal with matters which require approval by the ACT Planning and Land Authority (ACTPLA)
Under clause 129(1)(f) of the UTMA that the resolution of the EC to approve the construction of the storage enclosed for the Dock and the Brasserie be repealed based on a merits review by the ACAT.
Under clause 129(2) of the UTMA that the EC advise the two parties who sought 'approvals' from the committee that it had no authority to determine the applications and that the approvals are therefore void ... that the owner of the Dock be further advised to either remove the storage enclosures and disconnect the wired and piped services OR submit a development application so that there can be a proper and open assessment of the applications and of the broader town planning and Territory lease requirements. Whichever option is chosen it is to be completed within four weeks of the date of notification.
Under clause 129(2) of the UTMA that the EC advise the occupants of the other nine repurposed carparks that their use of the spaces is illegal and that they have two options: either remove the enclosures and/or the stored items and disconnect the wired and piped services OR submit a development application so that there can be a proper and open assessment of the applications and of the broader town planning and Territory lease requirements. Whichever option is chosen it is to be completed within four weeks of the date of notification.
Under clause 129(2) of the UTMA that the EC immediately advise the Insurer that the Respondent is in breach of clause 2 of the General Conditions of the policy and seek directions on how the cover can be put in order.
Serious breaches of the conditions of the development consent, and the Crown lease, for the Dockside mixed-use development at 25 to 35 East Lake Parade Kingston.[2]
A unit owner shall not except in accordance with the written permission given by the Executive Committee and in accordance with the provisions of any law in force in the Territory applicable in the circumstances erect or alter any structure in or on his unit.
In relation to a commercial unit, any structural erection or alteration will be permitted as long as the erection or alteration is within the boundary of the unit and is in accordance with any law in force in the Territory applicable to the circumstances... (the inaugural resolutions)
_(1) A unit owner may erect or alter any structure in or on the unit or the common property only - _
(a) in accordance with the express permission of the owners corporation by unopposed resolution; and
(b) in accordance with the requirements of any applicable territory law (for example, a law requiring development approval to be obtained for the erection or alteration).
Mr S Suryadi and Mr C Farrington were invited to the meeting to discuss a proposal regarding installation of a refrigeration condenser and storage facilities to the basement.
...the storage facilities require installation of a colorbond shed that will be installed across two parking spaces in the basement, namely units 127 and 128.
Those present granted approval for the proposed storage facility.
Car spaces must not be used as storage areas unless approved by the Executive Committee (car parking resolution).
Development approval is about the design of the development. It ensures the development is appropriate to an area and conforms with any lease requirements_, Territory Plan codes, regulations or specific development conditions that may apply to a particular piece of land._
"carpark" means the use of the parcel of land specifically allocated for the parking or (sic) motor vehicles.[12]
As part of preparing for my discussion with The Dock, I had a good look through our files.
...I found a written record of the Dockside Executive Committee meeting where approval was granted for the car park storage structure...
I hadn't fully appreciated just how clearly the committee had considered the proposal, including drawings/plans, and how clearly the committee had expressed its agreement.
There is still some legal uncertainty about whether the structure, in fact, requires a DA (based on advice coming to me);
The executive committee has clearly considered and approved it; and
I don't have a clear sense of the risk or harm that the structure itself presents for any person in the building;
I have decided to change my approach and I will NOT be asking the Dock to submit a DA at this stage (the Access Canberra advice).
There are two schools of thought on this. But the outcome has remained the same. Collectively we've decided that irrespective of whether it's a technical breach, it remains a practical solution that supports jobs and vibrancy in that development and has no associated harms or risks. Therefore no further action will be taken and not DA will be required.
Orders 1, 2 and 4 - the difficulty with the applications under section 129(1)(e)
(i) that a general meeting or executive committee meeting is void for irregularity; or
(ii) that a resolution of a general meeting or executive committee meeting is void for irregularity; or
(iii) that a rule of the owners corporation is invalid for irregularity;
According to the Oxford English Dictionary "irregularity", in its relevant sense, means "want of conformity to rule; deviation from or violation of a rule, law, or principle... deviation from what is usual or normal". The notion of an irregularity, in relation to an election, involves the idea of some departure from some rule, established practice or generally accepted principle governing the conduct of the election.
_...the ordinary meaning of the word can also refer to that which is anomalous or abnormal. As Northrop J said in Re Federated Liquor and Allied Industries Employees' Union of Australia; Ex parte Huxtabl_e [1979] FCA 17; 40 FLR 418 at 424:
The word "irregularity" is defined in the Shorter Oxford Dictionary (23rd ed. 1972 reprint) as "the quality or state of being irregular; something that is irregular". In the same dictionary, the word "irregular" is defined in relation to things as "not in conformity with rule or principle, contrary to rule; disorderly in action or conduct, anomalous, abnormal"
It is now accepted that, however apparent the defect may be, an administrative decision remains good in law unless and until it is declared to be invalid by a court of competent jurisdiction.
A major selling point of the tenancies from the first on-site meeting was the ability to convert the five basement carparks into storage...We would not have entered into the lease and subsequently purchased two units without this approval as the business is not viable without access to adequate storage.[19]
[1] 'Additional Order', filed 15 November 2017
[2] Transcript of proceedings page 8, lines 14-15
[3] Pursuant to section 28 of the Building Act 2004
[4] In accordance with section 69(2) of the Building Act 2004
[10] Transcript of proceedings pages 44 and 27
[11] Transcript of proceedings pages 44-45
[13] I do note that in Re Conciliation and Arbitration Act, 1904 v Re An Application By Robert Mccoll Adamson of An Inquiry Into An Election of An Office In the Amalgamated Metals Foundry and Shipwrights Union NSW [1984] FCA 380 that an 'irregularity' in an election could include propaganda deliberately intended to mislead voters. However, this decision was made in the context of a broad definition of the term in the relevant legislation, and the broader industrial context
[14] See Thornthwaite and Commissioner for Social Housing [2012] ACAT 11 at [9]; National Trust of Australia v ACT Heritage Council [2015] ACT 52 at [33]; Gindy & Chief Minister & ACT Government and Ors [2011] ACAT 67 at [13]
[16] If involving the return by the former managers of the owners corporations property
[18] As required, for example, by the wording of default rule 4(1)(b)
MITCHELL & ORS
THE OWNERS - UNITS PLAN 3940
Legislation cited: Building Act 2004 ss 28, 69
Planning and Development Act 2007
Unit Titles Act ss 12A, 166
Unit Titles (Management) Act 2011 ss 33, 111, 129
Cases cited: Gindy & Chief Minister & ACT Government and Ors [2011] ACAT 67
National Trust of Australia v ACT Heritage Council [2015] ACAT 52
R v Balfour; ex parte Parkes Rural Distributions Pty Ltd (1987) 17 FCR 26
Re Conciliation and Arbitration Act, 1904 v Re An Application By Robert Mccoll Adamson of An Inquiry Into An Election of An Office In the Amalgamated Metals Foundry and Shipwrights Union NSW [1984] FCA 380
R v Gray; Ex parte Marsh [1985] HCA 67; (1985) 157 CLR 351
Sara, in the matter of an inquiry into the election for offices in the Australian Salaried Medical Officers Federation [2018] FCA 844
Thornthwaite and Commissioner for Social Housing [2012] ACAT 11
(1987) 17 FCR 26
(1985) 157 CLR 351