[2025] NSWCATCD 112
General information, not legal advice.
NCAT Consumer and Commercial
2025-08-12
Mr J
Original judgment source is linked above.
CSR Limited v Adecco (Australia) Pty Limited [2017] NSWCA 121
Equuscorp v Wilmoth Field Warne [2007] VSCA 280; (2007) 18 VR 250
Legione v Hateley [1983] HCA 11
Mann v Paterson Constructions Pty Ltd [2019] HCA 2
Mao v Bao [2023] NSWCA 278
Pavey & Matthews Pty Ltd v Paul [1987] HCA 5
Patrick Keane, Estoppel by Conduct and Election (Sweet & Maxwell, 3rd ed. 2023)
JD McKenna, "Estoppel by convention and the sanctity of contract" (University of Queensland, https://law.uq.edu.au/files/23383/Estoppel-by-Convention-and-the-Sanctity-of-Contract.pdf)
Strata Schemes Management Bill 2015 (Second reading speech, Legislative Assembly 14 October 2015)
(1) first, on the operation of s 50 of the Strata Schemes Management Act 2015 (NSW) (SSMA), and the effect of the mandatory expiry of the term of appointment of a strata managing agent where both parties, in the month after, acted as if the term had not expired; and
(2) in the alternative and assuming a finding against the Owners on (1) (and presumably the consequence that the Agent had rights under or by reference to the Agreement), the reasonableness of the fees for the month prior to the resolution of the Owners replacing the Agent.
(1) the agreement with the Agent not be renewed "when the existing management agreement with that company expires on 30 April 2024"; and
(2) an alternate strata managing agent be appointed.
(1) a pool non-compliance notice from Council, with records showing 6 May 2024 and 10 May 2024 attendances;
(2) emergency roof leaks, ceiling repair and electrician 21 May 2024, including negotiating settlement of a disputed invoice with the electrician; and
(3) lift compliance issues on 24 May 2024.
"Again, I am shocked with your level of aggression as we have continued to assist your owners despite no longer having an agreement with them.
We have continued to be helpful and professional in answering their emails, issuing out levy notices, assisting with issuing explanatory notes when they did not read their notices and assisting with their requests out of goodwill." [original emphasis]
(1) Finding that the management agreement between the parties expired on 30 April 2024 and that the Agent was not entitled to deduct from the Owners' funds fees in respect of management services performed after that date.
(2) Finding that during the month of May 2024 the respondent charged the applicant and debited its trust account with fees to which the respondent was not entitled.
(3) Order that the respondent pay to the applicant the sum of $1,450 together with interest calculated from 31 May 2024 up until the date of payment.
50 Term of appointment of strata managing agents
(1) The term of appointment (including any additional term under an option to renew) of a strata managing agent for a strata scheme expires (if the term of the appointment does not end earlier or is not ended earlier for any other reason) -
(a) if the strata managing agent is appointed by the owners corporation at the first annual general meeting, at the end of the period of 12 months following that appointment, or
(b) in any other case, at the end of the period of 3 years following the appointment.
(2) A person may be reappointed by the owners corporation by resolution at a general meeting as the strata managing agent for a strata scheme at the end of the person's term of appointment.
(3) The appointment of a strata managing agent may be terminated in accordance with the instrument of appointment if authorised by a resolution at a general meeting of the owners corporation.
(4) The term of appointment of a strata managing agent may be extended by the strata committee for successive periods of up to 3 months after it would otherwise expire (but not for any period that would extend beyond the date of the next annual general meeting of the owners corporation) pending a decision as to the reappointment of the strata managing agent.
(5) However, if a strata committee has extended a term of appointment of a strata managing agent under this section, the strata committee must give the strata managing agent at least 1 month's notice of a decision not to reappoint the strata managing agent or not to further extend the appointment.
(6) A strata managing agent must give the owners corporation written notice of the end of a term of appointment -
(a) at least 3 months, but not more than 6 months, before the end of the term of appointment, and
(b) at least 1 month before the end of each extension of a term permitted by this section.
(7) An instrument of appointment of a strata managing agent for a period of 3 years (as referred to in subsection (1) (b)) is taken to include an option for the agent to extend the term of the appointment for a maximum period of 3 months after the end of the term of 3 years, if the owners corporation decides not to reappoint the agent and does not extend the term of appointment under subsection (4). The agent must give the owners corporation written notice of the exercise of the option.
(8) A strata managing agent is not entitled to exercise an option under subsection (7) if the owners corporation gives the agent written notice that the agent will not be reappointed at least 3 months before the end of the term.
(9) In this section, a reference to the appointment of a strata managing agent includes a reference to the reappointment of a strata managing agent.
"lift standards, to improve accountability and to address conflicts of interest within the sector...
...
The three-month notice period will give owners corporations sufficient time to call a meeting to decide whether to renew the contract, or to appoint a new agent. In the event that does not occur, the seven-day notice requirement will ensure that owners corporations are aware of the imminent expiration of the rollover period and can take any necessary action. This will help owners corporations to be aware of their responsibilities leading up to the end of a strata managing agent's contract and that they need to act. It is important that an agreement not continue in rollover indefinitely because it provides no certainty for either the owners corporation or their managing agent." [Owners' emphasis]
"a unifying legal concept which explains why the law recognizes, in a variety of distinct categories of case, an obligation on the part of a defendant to make fair and just restitution for a benefit derived at the expense of a plaintiff..."
(1) There was no evidence from the Owners that the Agent:
(a) was performing below standards;
(b) had not been accountable prior to the month of May after the Agreement had expired under s 50;
(c) had conflicts of interest.
(2) Despite the Agent not giving notice of the end of the Agreement between 6 and 3 months of its expiry:
(a) the Owners held a general meeting nearly 4 weeks prior to the expiry of the Agreement;
(b) the lot owners of the Owners were self-evidently aware of their ability to change strata managing agents by virtue of the 4 April 2024 motion; and
(c) the Agreement was not going to "continue in rollover indefinitely".
[120] As is apparent from the authorities to which I have referred, and as both parties accepted, the question whether an implied contract following upon the expiry of an express fixed term contract may be inferred turns on an objective inquiry. ... [T]he ultimate issue is whether a reasonable bystander would regard the conduct of the parties, including their silence, as signalling to the other party that their relationship continued on the terms of the expired contract. What was "required [was] conduct by the parties as if the contract remained on foot". Whether the inference will be drawn is "an evidentiary or factual question."
...
[122] I do not accept ... there must be evidence of exactitude in performing the expired contact in the post-expiry conduct of the parties. ... Each case will turn on its own facts.
...
[125] What [the plaintiff] had to establish was that the parties continued to act as though the Agreement still bound them after the term expired. In such a case the Court may infer that the parties have agreed to renew the express contract for another term or the Court may infer an implied contract drawing on some of the terms of the earlier contract, but omitting others. As the Supreme Court of Arkansas held in Steed v Busby, "[w]hen an agreement expires by its own terms, if without more the parties continue to perform as before, an implication arises that they have mutually assented to a new contract containing the same provisions as the old...".
"There cannot be any estoppel unless the alleged representor has said or done something, or failed to do something, with the result that - across the line between the parties - his action or inaction has produced some belief or expectation in the mind of the alleged representee."
(1) The costs applicant is to file with the Tribunal and serve on the costs respondent all written submissions (no more than 3 A4 pages) and documents relied upon in the costs application within 14 days from the date of this decision.
(2) The cost respondent is to file with the Tribunal and serve on the costs applicant all written submissions (no more than 3 A4 pages) and documents relied upon by the costs respondent within 28 days from the date of this decision.
(3) The costs applicant is to file with the Tribunal and serve on the costs respondent all submissions in reply (no more than 2 A4 pages) within 35 days from the date of this decision.
(4) The costs submissions of the parties are to include whether a party seeks an oral hearing on the issue of costs or consents to the issue of costs being determined on the papers.
(5) Subject to the submissions of the parties and consideration of those submissions, the Tribunal may determine the issue of costs without further oral hearing under s 50 (2) of the Civil and Administrative Tribunal Act 2013 (NSW).
(6) All costs submissions and documents must be filed with the Tribunal in hard copy.
I hereby certify that this is a true and accurate record of the reasons for decision of the Civil and Administrative Tribunal of New South Wales.
The Owners �e" Strata Plan No 63517
Titles Strata Management Pty Ltd [2025] NSWCATCD 112;
(2007) 18 VR 250