austlii:qld/QBCCMCmr/2025/219
General information, not legal advice.
QBCCMCmr
2025-06-24
Original judgment source is linked above.
Sentosa Waters [2025] QBCCMCmr 219
Leanne Stephenson, owner of Lot 401 (applicant)
Body Corporate and Community Management Act 1997 (Qld) (Act), sections 227(1)(b) and 229(3)(a)
Body Corporate and Community Management (Accommodation Module) Regulation 2020 (Accommodation Module)
MAINTENANCE - where motions proposing remediation works failed to pass at a general meeting - whether the body corporate has failed to maintain the common property in good condition - whether it was unreasonable not to pass the motions - whether the motions should be deemed passed or given effect to.
(a) a declaration that the Common Property for the Scheme is not in 'good condition';
(b) an order authorising the committee of lot owners for the Scheme to, on behalf of the Body Corporate, do all things reasonably required to:
(i) engage Renfay Projects to carry out remediation works for the Scheme in accordance with:
- the Scope of Works prepared by Buildcheck; and
- Option A-B of the Tender Summary from Buildcheck (Renfay Contract),
both circulated with the agenda papers for the Annual General Meeting of the Scheme held on 25 July, 2024 (AGM);
(ii) enter into and execute a loan agreement with Lannock Capital 2 Pty Ltd (ACN 153 391 283), in the terms circulated with agenda papers for the AGM (Lannock loan);
(iii) draw down on funds able to be advanced under the Lannock Loan to meet the obligations of the Body Corporate under the Renfay Contract.
(c) an order declaring that:
(i) motion 12, alternative 12.a, considered by the lot owners of the Sentosa Waters Community Titles Scheme 43348 at the AGM, was passed by special resolution; and
(ii) motion 14 considered by the lot owners of the Sentosa Waters Community Titles Scheme 43348 at the AGM, was passed by special resolution; and
(iii) motion 15, alternative 15.b, considered by the lot owners of the Sentosa Waters Community Titles Scheme 43348 at the AGM, was passed by ordinary resolution.
(d) such further or other order(s) as may be determined to be just and equitable for the purpose of determining this dispute.
The tender summary refers to a meeting with 3 contractors in June 2023 and encloses detailed quotes from Building Rectification Services, Amalgamated Property Maintenance, and Renfay Projects.[11] 7. Buildcheck also provided a building condition report in March 2024, stated to be based on a visual inspection in April 2023. It said the concrete slabs showed evidence of waterproofing failure, and recommended those areas be rectified. 8. Another Buildcheck report is dated November 2024, limited to assessing a proposed rectification procedure to address waterproofing failure in a quote from S & S Remedial. It said the proposed works were non-complaint and recommended against them.
The explanatory note to Motion 11 noted the common area roof was one of several areas identified as needing repair. It recommended the Stop & Seal quote for several listed reasons. It said the option was more cost effective in the long term.
Motions 11a and 11b were listed as requiring ordinary resolutions. Motion 11a received 18 votes for and 15 against, while Motion 11b received 1 vote for and 29 against. Accordingly, Motion 11a was carried.
Each of the motions in Motion 12 were listed as being submitted by the applicant and requiring a special resolution. Motions 12a and 12b were defeated with 6 votes for and 29 against. Motion 12c was defeated with 2 votes for and 31 against.
The statutory duty imposed ... is one which obliges it to remedy any defect as soon as any of the building parts covered by the duty fall into disrepair or were not operating properly. Failure to do so, once aware, gave rise to a breach of its duty.[24]
...there is an intention disclosed by the legislation for a duty of care to arise.[25]
The duty to maintain: involves an obligation to keep a thing in proper order by acts of maintenance before it falls out of condition, in a state which enables it to serve the purpose for which it exists; requires the body corporate not only to attend to cases where there is a malfunction, but also to take preventative measures to ensure that there not be a malfunction; extends to require remediation of defects in the original construction of the common property; and extends to oblige the body corporate to do things which could not be for the benefit of the proprietors as a whole or even a majority of them. There is a breach of the duty as soon as something in the common property is no longer operating effectively or at all, or has fallen into disrepair. [26]
[2] Sections 227, 228, 276 and schedule 5 of the Act
[3] Section 241 of the Act
[4] Section 245 of the Act
[5] Section 243 of the Act
[6] Sections 246 and 244 of the Act
[7] Section 248 of the Act
[9] The SoW included in the application is predominantly labelled 0907.QLD.001.01.SOW.Rev4 and dated 19 January 2024, but includes some pages labelled 0907.QLD.001.01 and dated 25 July 2023, and some pages labelled 0907.QLD.001.01.Rev3 and dated 1 November 2023. A submitter says the SoW included in the notice of the 2024 AGM was 0907.QLD.001.01.Rev3 dated 1 November 2023.
[10] The tender summary in the application is dated 4 February 2024 and references 0907.QLD.001.01.Rev3. A submitter provides a later version dated 17 May 2024 referencing 0907.QLD.001.01.SOW.Rev4 and indicating that a supplement to the SoW was given to the contractors on 30 April 2024.
[11] The Renfay Projects quote included in the application is dated 20 November 2023. The other two quotes are undated, but each use a tender form dated 1 November 2023.
[13] The submitter is also the applicant's spouse.
[14] Section 201 of the Accommodation Module
[15] Section 170 of the Accommodation Module
[16] Section 20 of the Act
[17] Sections 48C and 49C(4) of the Land Title Act 1994
[18] Section 170(2)(a) of the Accommodation Module
[19] Section 170(2)(b) of the Accommodation Module
[20] Section 170(3) of the Accommodation Module
[21] Section 170(4) of the Accommodation Module
[22] Section 177 of the Accommodation Module
[23] Section 170(5) and (6) of the Accommodation Module
[24] Searles DCJ in Klinger & Anor v Body Corporate for Costa D'Ora Apartments [2007] QDC 300 at 67
[25] Newton DCJ in Magog (No.15) Pty Ltd v The Body Corporate for The Moroccan [2010] QDC 70 at 82
[26] Brereton J in Seiwa Pty Ltd v The Owner's Strata Plan 35042 [2006] NSWSC 1157, at para 4 and 5, cited in Magog (No.15) Pty Ltd v The Body Corporate for The Moroccan [2010] QDC 70 at 83 and 84
[27] Section 162(2) of the Standard Module
[29] Lord Denning in Morcom and Ors v Campbell-Johnson and Ors [1955] 3 All ER 264
[30] Section 186 of the Accommodation Module
[31] Section 94(2) of the Act
[32] Section 100(5) of the Act
[33] Body Corporate for Beaches Surfers Paradise v Backshall [2016] QCATA 177 at 43, citing McKinnon v Department of Treasury [2006] HCA 45; (2006) 228 CLR 423
[34] Body Corporate for Beaches Surfers Paradise v Backshall [2016] QCATA 177 at 47
[35] Body Corporate for Beaches Surfers Paradise v Backshall [2016] QCATA 177 at 34, 74 and 98
[36] Noting section 170 to 172 of the Act
[37] Pursuant to section 210 of the Accommodation Module, I note the body corporate could organise maintenance on behalf of owners, but only by agreement with those owners and only if the costs were recovered from the individual owners benefiting from the service.
(2006) 228 CLR 423