austlii:qld/QBCCMCmr/2025/425
General information, not legal advice.
QBCCMCmr
2025-11-28
Mason CJ, Gaudron JJ, Commission J
Original judgment source is linked above.
The Body Corporate for Sanctuary Park (applicant)
The original underlying dispute was an alleged failure by the outgoing body corporate manager to comply with the applicant body corporate's statutory notice demanding it return, among other things, the body corporate's funds. Following further self-resolution, the applicant is satisfied the respondent has now returned the funds. The applicant now seeks only a declaratory order that the respondent did not initially comply with the statutory notice.
The question is whether it is appropriate to make a declaration in circumstances where the substantive dispute has been resolved and the declaration would have no foreseeable consequences for the parties.
This is a matter of importance to the Applicant but also to Queensland's strata industry. This decision will resolve and provide clarity on whether a body corporate manager who remains a signatory on a body corporate's bank account can refuse to return the funds to the body corporate by bank cheque or electronic funds transfer because the body corporate could go through the difficult and delayed process of changing signatories through the bank to gain possession and control for itself.
It is now accepted that superior courts have inherent power to grant declaratory relief. It is a discretionary power which "it is neither possible nor desirable to fetter... by laying down rules as to the manner of its exercise". However, it is confined by the considerations which mark out the boundaries of judicial power. Hence, declaratory relief must be directed to the determination of legal controversies and not to answering abstract or hypothetical questions. The person seeking relief must have "a real interest" and relief will not be granted if the question "is purely hypothetical", if relief is "claimed in relation to circumstances that [have] not occurred and might never happen" or if "the court's declaration will produce no foreseeable consequences for the parties". > > [citations omitted]
[52] There may be cases where a bare declaration that some legal requirement has been contravened will serve to redress some or all of the harm brought about by that contravention. Ainsworth v Criminal Justice Commission was such a case. But a declaration cannot be made if it "will produce no foreseeable consequences for the parties." That is not simply a matter of discretion. Rather, a declaration that produces no foreseeable consequences is so divorced from the administration of the law as not to involve a matter for the purposes of Ch III of the Constitution. ... > > ... > > [167] ... Basic to [the] Constitution is the acceptance that the sole function of federal courts is the determination of "justiciable controversies" or "legal controversies". Such courts are not places which can be turned into "judicial versions of college debating forums", nor a vehicle for the vindication of the "value interests of concerned bystanders". Nor may they give advisory opinions or answer questions divorced from concrete cases which involve an "immediate right, duty or liability" ascertained by reference to pre-existing law. > > [citations omitted]
[1] [1992] HCA 10, (1992) 106 ALR 11 at 22
(1992) 106 ALR 11