[2025] VSC 827
General information, not legal advice.
Supreme Court of Victoria
2025-12-19
FORBES J
Original judgment source is linked above.
APPEAL - Victorian Civil and Administrative Tribunal decision - Dispute as between owners corporation and owner of one of four lots with shared common property - Determination by VCAT that owner remove external CCTV cameras, awning, relocate external component of air conditioning unit installed on her lot and pay civil penalty - Leave to appeal refused - Owners Corporations Act 2006 (Vic) - Victorian Civil and Administrative Tribunal Act 1998 (Vic) s 148(2A) - Shearman v Owners Corporation No 1 417405X [2016] VSC 551 - Franklin v Ubaldi Foods Pty Ltd [2005] VSCA 317.
...
- By 31 January 2025, pursuant to s 166 of the Owners Corporations Act 2006, Ms Fang must pay to the owners corporation a Civil Penalty of $2,371.08 in respect of the breaches.[1]
(a) Has Ms Fang acted in breach of the requirements of the Owners Corporations Act 2006 (Vic) ('OC Act'), in respect of the CCTV cameras, the awning and the air conditioning unit?
(b) Were the breach notices in contention [in respect of the CCTV cameras, awning and air conditioning unit] validly issued by the Owners Corporation in accordance with the requirements of the OC Act?
(c) Should Orders be made requiring Ms Fang to remove the CCTV cameras, the awning and the air conditioning unit?
(d) Are there grounds for the imposition of civil penalties? [2]
(a) Yes.
(b) The breach notices were valid in respect of the air conditioning and the CCTV cameras but invalid in respect of the awning. The final breach notices were all invalid.
(c) Yes.
(d) Yes.
109 It is appropriate to order Ms Fang remove the CCTV cameras.
C The proposed Appeal and the relevant statutory provisions
(a) in making an order under s 165 of the OC Act, the Tribunal failed to consider, or make a finding, that it was 'fair' to make the order for removal or relocation of the installations (questions of law and grounds 1 to 6);
(b) in making the orders to remove or relocate the installations, the Tribunal failed to have regard to the conduct of the owners corporation, as required by s 167 (questions of law and grounds 7 to 12);
(c) the Tribunal erred in law in finding that the owners corporation had complied with s 153(2) in respect of the installation of the air-conditioning and CCTV and therefore erred in ordering their removal (questions of law and grounds 14, 15, 26 and 27);
(d) the Tribunal failed to rule or give any adequate reasons for refusing Ms Fang's application for summary dismissal or strike out of the OC application under s 164 of the OC Act (questions of law and grounds 13);
(e) the Tribunal failed to give any adequate reasons for the orders to remove or relocate the installations (questions of law and grounds 16 to 18); and
(f) the Tribunal erred by making an order that Ms Fang pay a civil penalty under s 166 without considering the conduct of the owners corporation under s 167 (questions and grounds 19 to 23, 28).
S 153 Decision whether to take action in respect of alleged breach
(a) a complaint is made under section 152; or
(b) it otherwise comes to the attention of the owners corporation that a lot owner or an occupier of a lot or a manager may have breached this Act or the regulations or the rules of the owners corporation.
(a) to take action under this Part in respect of the alleged breach; or
(b) to apply to VCAT for an order requiring the person to rectify the alleged breach; or
(c) to take no action in respect of the alleged breach.
(3) An owners corporation must not take action under this part or apply to VCAT for an order in relation to a complaint made under section 152 unless -
(a) the dispute resolution process required by the rules has first been followed; and
(b) the owners corporation is satisfied that the matter has not been resolved through that process.
(1) In determining an owners corporation dispute, VCAT may make any order it considers fair including one or more of the following -
(a) an order requiring a party to do or refrain from doing something;
(b) an order requiring a party to comply with this Act or the regulations or the rules of the owners corporation;
If VCAT determines that a person has failed to comply with a rule of the owners corporation that imposes an obligation that is binding on the person, VCAT may make an order imposing a civil penalty not exceeding $1100 to be paid to the owners corporation.
(1) VCAT in making an order must consider the following -
(b) an act or omission or proposed act or omission by a party;
(c) the impact of a resolution or proposed resolution on the lot owners as a whole;
(d) whether a resolution or proposed resolution is oppressive to, unfairly prejudicial to or unfairly discriminates against, a lot owner or lot owners;
D.1 Grounds 1 to 6: Did the Tribunal decide what orders were 'fair"?
D.2 Grounds 7 to 12: Did the Tribunal fail to have regard to the conduct of the OC as part of the mandatory considerations in s 167 of the OC Act?
(a) reference to the OC manager making inquiries with consumer affairs as to installation of the CCTV cameras in the Reasons at [43];
(b) Ms Fang's response to the resolution to reorient the cameras passed on 24 August 2021 refusing to do so in terms recorded by the Reasons at [46];
(c) The actual installation of the cameras did not accord with the proposal notified to the OC by Ms Fang and the Tribunal's finding that even if an OC meeting did authorise installation, the installation did not occur as arguably approved;
(d) Ms Fang's inability to produce evidence concerning the compliance with legislation in the installation of the cameras and the evidence about the orientation and legality of the installations canvassed at length in the Tribunal hearing;
(e) The actions of the OC in response to emails notifying of Ms Fang's intention to install the items, including the lack of notice of planning permission for the awning[33] and the lack of opportunity for the OC to consider the awning installation before the works were carried out,[34] the enquiries of the OC Manager as to the approved plans not attaching the awning to the balcony,[35] the convening of a special general meeting on 6 May 2021 concerning the request to install CCTV cameras and the record of that meeting,[36] the AGM on 24 August 2021 as well Ms Fang's response to the minutes of that meeting,[37]
(f) The conclusion that there had been a decision in accordance with s 153(2) concerning two of the installations which affected the validity of the breach notices, a matter discussed further below at [55] and following; and
(g) The conduct of the OC when addressing Ms Fang's application for relief based upon a 'fraud on the minority'. In that context the Tribunal addressed the motivation of the members of the OC and its manager concluding that there had been no lack of good faith on the part of the lot owners. While that conclusion was primarily relevant to the relief sought by Ms Fang, it was also a relevant consideration as to the conduct of the OC going to the fairness of relief sought by the OC.
D.3 Grounds 14, 15, 26, 27: Did the Tribunal err in determining that the owners corporation had complied with s 153(2) of the OC Act?
D.4 Ground 13: failure to rule on, or give reasons for, Ms Fang's application for dismissal for non-compliance with s 153 of the OC Act.
VCAT may make any order dismissing or striking out an application by an owners corporation for an order requiring rectification of an alleged breach referred to in section 153 if it is satisfied that the owners corporation has not complied with that section.
(a) a mandatory obligation is imposed on an owners corporation to make a formal decision about action concerning alleged breaches by s 153(2) of the OC Act.
(b) Where a complaint has been made under s 152, s 153(3) provides that an owners corporation must not take action under s 153(2)(a) or (b) unless the dispute process under the relevant rules has been followed and failed to resolve the dispute.
(c) Non-compliance with the obligations under s 153 enlivens a discretion of the Tribunal under s 164 in respect of an application requiring rectification of an alleged breach.
(d) The discretion under s 164 is constrained by the purposes and objects of the OC Act which include the importance of internal mechanisms for dispute resolution that must be carried out by an OC acting objectively and in good faith.
(e) In the absence of a complaint made under s 152, the requirement of s 153(3) to follow internal dispute resolution processes does not apply.
(a) They reveal a path of reasoning or analysis that leads to the ultimate conclusion, in other words they provide an intelligible explanation for the outcome,
(b) They are not simply a summary of the evidence and a statement of conclusion but will identify findings on material facts,
(c) They deal with both the evidence accepted and acted upon as well as explaining why other evidence has been rejected or excluded from consideration.
(d) As a result of the above matters reasons should enable parties to understand why the decision maker has reached the stated outcome, and enable the losing party to understand why the case was lost,
(e) the extent of the reasons will depend upon the circumstances of the case and address the issues raised and contested by the parties.
Section 153 not having been complied with, it is submitted the application to enforce the remaining Notices should be dismissed or struck out under s. 164.
...the fact that a judge may not mention some matter relevant to the disposition ... [of an] application does not necessarily mean that his or her judgement is deficient. For example, matters which are obvious need not be restated, and the element of value judgment involved...does not always lend itself to the degree of precision in expression... Logic and fairness dictate that the reasons for judgment of such an application should be of a standard which is commensurate with the degree of finality.
D.5 Grounds 16 to 18: A failure to provide adequate reasons for orders to remove or relocate installations.
D.6 Grounds 19 to 23, 28: Civil Penalty imposed
(a) A failure to have regard to a relevant consideration, being conduct of the OC under s 167;[58]
(b) A Failure to consider/give weight to findings that there had been no decision concerning the awning under s 153(2), and that breach notices and final breach notices were ineffective;[59]
(c) By stating that Ms Fang had failed to comply with Model Rules 5.1 and 5.3 when there was no finding to that effect; and [60]
(d) By placing too much weight on Ms Fangs lack of remorse.[61]
An owner or occupier of a lot must give written notification to the owners corporation if the owner or occupier changes the existing use of the lot in a way that will affect the insurance premiums for the owners corporation.
(1) An owner or occupier of a lot must obtain the written approval of the owners corporation before making any changes to the external appearance of their lot.
An owner or occupier of a lot must notify the owners corporation when undertaking any renovations or other works that may affect the common property and/or other lot owners' or occupiers' enjoyment of the common property.
[114] I consider that, if it had been intended that notification alone be sufficient in the case of proposed alteration to the external appearance of a lot, Model Rule 5.2 would only require notification by the pot owner. The drafting of model Rule 5.2 clearly requires the lot owner proposing alterations to the external appearance of the pot to obtain written approval for those alterations.
[115] Accordingly I find that Model Rule 5.2 requires that a lot owner expressly seek the approval of the owners corporation and that the lot owner provide the owners corporation with full details of what is proposed...
[59] ...I am satisfied that [Ms Fang] chose to behave in a manner that was inconsistent with the obligation of the owners corporation to give consideration to the issues of quiet enjoyment, structural integrity of lots and common property, and the value of lots and common property. I am satisfied that, in the installation of the awning, the CCTV cameras and the air-conditioning unit, Ms Fang was in breach of the requirements of the OC Act.
It is significant that that the requirement in Rule 5.2 to obtain the written approval of the owners corporation is expressed in very different terms from the requirement in Rule 5.3 to notify an owners corporation of renovations or other works that may affect the common property and or other lot owners' enjoyment of the common property. Rule 5.2 can also be contrasted with the requirement in s 133 of the OC Act that a lot owner give notice to an owners corporation of any application by the lot owner for a building permit or a planning permit.[63]
[1] Order of Senior Member in Natalie Hong Fang v Owners Corporation Plan No. RO001311 (Owners Corporations) (VCAT, OC2/2023 and OC1224/2023, 10 January 2025).
[2] Fang v Owners Corporation Plan No. RO001311 (Owners Corporations) [2025] VCAT 32, 5 [15] ('Reasons'). Other issues identified at [15(e)-(h)] are not relevant to this appeal.
[7] Owners Corporations Act 2006 (Vic) ('OC Act') s 153 (1)(b).
[14] Transcript of proceedings, Natalie Fang v Owners Corporation No. RP001311 (Supreme Court of Victoria, S ECI 2025 00590, Forbes J, 24 July 2025) ('T') 11, 26-27.
[15] See, for example, Energy Technology Australia Pty Ltd v Owners Corporation PS 439401J ('ETA'), following and applying Christ Church Grammar School v Bosnich (2010) 34 VAR 23.
[18] Defendant, 'Respondent's Written Submissions' filed 20 May 2025 ('Defendant's Submissions') [30].
[19] Filippou Management Pty Ltd v MREEF Project Company No 11 Pty Ltd & Ors (No 2) (Civil Claims) [2010] VCAT 1261 [20].
[25] Collin's Dictionary (online at 17 December 2025) 'fair'.
[27] [2018] VCAT 645 (emphasis in original).
[30] See discussion below at [74], and Shearman v Owners Corporation No 1 417405X [2016] VSC 551 ('Shearman').
[32] Owners Corporation 1 PS611240X v Brady (Owners Corporation) [2018] VCAT 645, [48]-[50].
[39] Transcript of proceedings, Fang v Owners Corporation Plan No.RO001311 (Owners Corporations) [2025] VCAT 32 (VCAT, OC2/2023, OC1224/2023, Senior Member L Johnson, 17 June 2024) ('VCAT T') 537-538.
[42] Jenkins v OCVM Commercial Pty Ltd (Owners Corporations) [2019] VCAT 1078 ('Jenkins').
[43] Plaintiff, 'The Applicant's Outline Of Submissions' filed 28 April 2025 ('Plaintiff's Submissions') [68].
[46] At Reasons [75], extracted above at [7].
[47] What is set out above is an extract from Shearman paragraphs 52, 53 and 55.
[54] Franklin v Ubaldi Foods Pty Ltd [2005] VSCA 317.
[55] Ahley JA in Franklin v Ubaldi Foods Pty Ltd [2005] VSCA 317 relied on by both parties, Ashley JA encapsulating observations of Chernov JA in Barlow v Hollis [2000] VSCA 26.
Fang
Owners Corporation No. RP001311 [2025] VSC 827