Trevallyn-Jones v Owners Strata Plan No 50358
[2009] NSWSC 694
At a glance
Source factsCourt
Supreme Court of NSW
Decision date
2009-06-26
Before
Ward J
Source
Original judgment source is linked above.
Judgment (34 paragraphs)
Background facts 10 Tendered in evidence (in most cases twice, since the parties did not manage to agree to a single tender bundle) was a considerable amount of correspondence, mostly passing between Ms Trevallyn-Jones and the Executive Committee of the Owners Corporation (or its chairman) or between Ms Trevallyn-Jones and the Strata Managing Agent, Peter Clisdell Pty Limited ("the agent"). That correspondence was admitted by me on the basis agreed between Counsel that the correspondence was evidence of the fact that particular communications, complaints or assertions were made; not as evidence of the truth of the (often contentious) statements contained therein. Where reference is made to the content of the parties' correspondence in these reasons, it should be understood in that context. The two schedules summarising parts of the correspondence to which Mr Radford (the chairman of the Executive Committee of the Owners Corporation at various times) had had regard (as annexed to his affidavits of 23 September 2008 and 22 June 2009 respectively) were admitted by me on the same basis. (In general I have attempted to give both exhibit references to the correspondence which was tendered in duplicate.) 11 As to the factual background to this dispute, it is necessary (given the defences raised by the Owners Corporation) to set out the chronology of events in some detail. · Overview 12 Ms Trevallyn-Jones, an architect, purchased Unit 7 in the Strata Plan in February 2001. At that time, and until about mid 2003, Ms Trevallyn-Jones' primary residence was in Cremorne. 13 From mid to late 2003 (and up until early 2007), Ms Trevallyn-Jones was primarily residing in Unit 7, although from time to time in 2003/2004 she returned to the home in Cremorne where her then husband lived (to walk his dogs) (T 31). Ms Trevallyn-Jones was married at the time but living separately from her husband and in an intimate relationship with a woman who subsequently acquired the adjacent unit to Unit 7 (Ms Wickham). That relationship, according to Ms Trevallyn-Jones, lasted from some time in 2003 to January 2004 and then from June 2004 to mid February 2005 (T 32). (Ms Wickham's affidavit sworn 6 November 2008 corroborates this.) Ms Trevallyn-Jones says she and her husband were separated from January 2006 (T 50). 14 I note this evidence (which is not directly relevant to the issues in dispute) for two reasons: first, because it was suggested for the Owners Corporation that the nature of the relationship between Ms Trevallyn-Jones and Ms Wickham was such that Ms Trevallyn-Jones really wanted no one to come into or inspect her premises because she did not want people to see paraphernalia in the unit at that time (T 60/61) (a suggestion which was in my view convincingly denied by Ms Trevallyn-Jones) and, secondly, because it was said that the reason Ms Trevallyn-Jones had vacated Unit 7 in May 2007 was due, not to the water penetration problem or the state of repair of the parquetry flooring, but to the fact that after Ms Wickham moved into the adjacent unit Ms Trevallyn-Jones had expressed the view that she was unable to live in Unit 7 (and therefore it was said that Ms Trevallyn-Jones had chosen to move out of the unit for reasons unconnected with any desire to rent out the unit), (as to which, while Ms Trevallyn-Jones denied that the reason she left the unit was because of personal problems with Ms Wickham - T 63/64, there was evidence which suggested that this may have been a contributing factor, which I consider later). 15 Whether or not Ms Wickham's occupation of the adjacent unit led (or contributed to) the decision by Ms Trevallyn-Jones to vacate the unit in May 2007 (a decision Ms Trevallyn-Jones had foreshadowed since at least 2004), Ms Trevallyn-Jones' personal circumstances over the period may also help to explain the timing of Ms Trevallyn-Jones's varying instructions to the agent and/or the Owners Corporation as to her postal address, a matter which in turn seems at least partly to explain difficulties encountered from time to time in communications between the Owners Corporation (or the agent) and Ms Trevallyn-Jones. 16 From time to time Ms Trevallyn-Jones' address for written notices or communications was changed and Ms Trevallyn-Jones gave evidence that letters sent to her at one or other address were not always received by her in the ordinary course or at all. Ms Trevallyn-Jones says that in about 2003/04 she asked for mail to be sent to the Cremorne address (even though she was primarily residing in Unit 7) because the mailboxes in the building were broken and she was having a problem with a neighbour, but then in 2006 she asked for mail to be directed to a post office box number (T 50). 17 In this regard I accept Ms Trevallyn-Jones' explanation for the delay in receipt or non-receipt by her of certain of the correspondence to which she was taken. I see no logical reason for her to have responded to some correspondence but not to other correspondence in relation to the water penetration issues. (There was at least one instance in May 2005 (Ex 1 p 157) where Ms Trevallyn-Jones apologised in writing for the delay in responding to correspondence, and other correspondence in which she explained the position in relation to her mail and in which she had confirmed the best mode of communications with her, which seems inconsistent with any deliberate attempt on her part to remain incommunicado.) 18 Nor does it seem that Ms Trevallyn-Jones was shy of putting her views about the matter into writing. One of the complaints made of Ms Trevallyn-Jones seems to have been that she constantly wrote letters and queried decisions of the Owners Corporation or the work/recommendations of consultants or workmen it had retained. Mr Radford said, with apparent feeling, in the witness box that Ms Trevallyn-Jones had written "many, many, many, many, many, many letters" over many years (T 162). Mr Radford's (or the Executive Committee's) frustration seems apparent from the statement in the letter dated 22 November 2007 (on the first page) though dated, variously in the tender bundles, on the second page as 27 November 2007 and 21 January 2008 (the copy received by Ms Trevallyn-Jones being written on the letterhead of the agent, though in the format of some of Mr Radford's other correspondence) that "No further correspondence will be entered into regarding the matter" (Ex 1 p 340; Ex D p 395). 19 Ms Trevallyn-Jones noticed a buckling of the timber of the parquetry floor in her unit, and some blocks becoming loose, after what she described as heavy rain in April 2001. After further rain in early 2002, Ms Trevallyn-Jones again noticed buckling of the parquetry floor. Ms Trevallyn-Jones first wrote to the agent about water penetration to Unit 7 by letter dated 1 March 2002 (Ex D p 4; Ex 1, p 17). 20 (There was objection taken, which was ultimately not pressed, by Mr Dixon (Counsel for the Owners Corporation) to the description, where appearing in Ms Trevallyn-Jones' affidavits, of rain as being "heavy" on the basis that this was a conclusion. Ultimately, I do not consider that anything turns on this description (which I accept can only be a matter of lay opinion, the foundation for which was not explored during the hearing), although I do note that at least one of the witnesses who gave evidence for the Owners Corporation (Mr Peter Hosper) had himself described later rain in May 2003 as "torrential".) 21 Whatever the force of the rain, and however it might accurately have been described in meteorological terms, it seems not to be seriously in dispute that from 2002 the Owners Corporation was on notice that there were water penetration problems affecting at least Unit 7. By 2003 it was apparent that the water penetration problems affected a number of other units in the Strata Plan (including at least Units 4, 5, 6, 8, 9 and 10). 22 There were three tranches of work carried out in an attempt to fix the water penetration problems - in August 2005; over the period May/December 2007; and finally in November 2008. Apart from temporary repairs apparently effected on occasions by Ms Trevallyn-Jones, the damaged parquetry floor was not finally repaired until December 2008. 23 A relevant factual issue (albeit one on which no expert evidence was adduced by the Owners Corporation) is whether, in the case of Unit 7, the water penetration problem was exacerbated, or contributed to, by conduct taken by Ms Trevallyn-Jones and/or a building consultant retained by her (by the installation of an air conditioner in about February 2005 or by water testing carried out in July 2007 and again in February 2008). 24 Ms Trevallyn-Jones vacated the unit in May 2007 with the stated intention of leasing the unit. It was not until February 2009 that the unit was finally leased. 25 Counsel for Ms Trevallyn-Jones, Mr Young, quite fairly in my view, summarised the position as follows: it took a period of almost seven years from the initial complaint by Ms Trevallyn-Jones in relation to water penetration until the problem was finally fixed by contractors engaged by the Owners Corporation; it had taken three and a half years (ie until August 2005) for the Owners Corporation to do any work at all and then there was a gap of almost two years before further work took place, which work then stretched over a period of seven months and for another year before it was finally completed; during which period orders were made by the CTTT on 16 January 2007 and amended on 9 February 2007 (which were breached by the Owners Corporation given that, far from completion of the work by 31 March 2007 as ordered, the work did not even commence until late May 2007). I might add that during this period similar water penetration problems in various other units (including those owned by Mr Radford, Mrs Robertson-Swann, Mr Hosper and Mr Keys) seemed to have been rectified in a much shorter time frame. 26 What was the Owners Corporation's response? In effect, it would seem encapsulated by the summing up given by Mr Radford as follows: I believe the Owners Corporation made every effort - certainly myself in my power at the time I was chairman, to the best of my ability - to get the matter addressed. But we are dealing with the [most] difficult person you could imagine, and a most uncooperative person, in [trying] to resolve the matter (T 186). 27 Turning then to the chronology of events, I note as follows. · 2002-2003 28 As noted above, Ms Trevallyn-Jones first raised the water penetration problem with the agent in March 2002. She also raised the issue at a general meeting of the Owners Corporation in mid 2002. Minutes of the 12 June 2002 meeting (Ex 1 p 19) (contrary to the assertion made in Mr Radford's summary) record a reference to cracks in Unit 7 and a leak coming from the courtyard of Unit 7. 29 At the 2002 Annual General Meeting, Ms Trevallyn-Jones was elected as a member of the Executive Committee of the Owners Corporation and for about two years up to the general meeting in July 2004 Ms Trevallyn-Jones remained a member of the Executive Committee of the Owners Corporation. According to other members of the Executive Committee (Mr Radford and Mr Hosper) who gave evidence in the proceedings, during that time it was largely left to Ms Trevallyn-Jones to deal with the agent in relation to the water penetration issue. 30 In May 2003, there was again water penetration into Unit 7 (and a number of other units within the Strata Plan, including Units 8,9 and 10) after a further period of rain. In July 2003, Ms Trevallyn-Jones again raised the issue of water penetration into Unit 7, both with the agent and at the Annual General Meeting of the Owners Corporation. (According to Ms Trevallyn-Jones' correspondence to the agent on 25 July 2003, she had at the July 2003 meeting "agreed to try and obtain an architect's report on the leak from the courtyard of Unit 7 and also possibly review the leaks affecting Units 3 and 5". Ms Trevallyn-Jones' facsimile transmission of 25 July 2003 (Ex 1 p 26) to the agent reported that Nick Krikis of Krikis Taylor Architects was willing to look at the floor (of Unit 7) and give some advice "which can confirmed that there has been water penetration and damage to the floor and advise on the most likely causes of the water ingress". Ms Trevallyn-Jones also reported that a further area of the parquetry floor had bubbled up "and is now presenting a trip hazard". 31 On 20 October 2003, Ms Trevallyn-Jones wrote to the Owners Corporation formally making an application, inter alia, that it carry out repairs to the parquetry floor and to the common property to prevent water penetration into Unit 7 (Ex 1 p 78; Ex D p 7). 32 In November 2003, the Executive Committee apparently resolved to appoint tradesmen to review the damage to Unit 7 (Ex 1 p 44, minutes of Executive Committee meeting). However, it does not appear that such a review took place (at least of Unit 7) at or about that time. Certainly, the principal witness called for the Owners Corporation (Mr Radford) was unable to shed any light on anything that had happened over the period from November 2003 to mid 2004 to address the water penetration problem in Unit 7. He suggested that it was being organised by the agent (T 126). 33 What is apparent, from the evidence of each of Mr Radford, Mr Hosper and Mr Keys (owners of other units in the Strata Plan), is that some works were done to rectify water damage in other units (or at least their respective units) over the period through to about May 2004 (in Mr Radford's case this was in train when he purchased his unit and in the case of Messrs Hosper and Keys it would seem it took place over a 12 month period from some time around May 2003). Mrs Robertson-Swann (another unitholder and member of the Executive Committee for most of the relevant period) also attested to problems with a leaking ceiling in her unit being fixed at some time. · 2004 34 In June 2004, Ms Trevallyn-Jones applied to the Office of Fair Trading for a mediation of disputes with the Owners Corporation. Those disputes, as identified by her in the application, included the water penetration issue (Ms Trevallyn-Jones seeking repairs to the parquetry flooring). Mr Radford, in the witness box, was quick to say that one of the issues for mediation was that of outstanding strata levy fees claimed from Ms Trevallyn-Jones at the time. (By reference to the assertions made in correspondence at about that time there seems to have been a dispute by Ms Trevallyn-Jones as to amounts levied by way of interest or other charges raised by the agent.) Ms Trevallyn-Jones, in her application for mediation, indicated that she was seeking by way of an outcome (among other things) that new strata managing agents be appointed and for repairs to be carried out to prevent water penetration and repair the parquetry floor. 35 The Owners Corporation apparently declined to participate in a mediation (just as it later seems to have chosen not to attend or put any submissions before the Strata Titles Adjudicator on Ms Trevallyn-Jones' application in January 2007 for orders in relation to the rectification of the water penetration problem). 36 In July 2004, a new Executive Committee was elected, which did not include Ms Trevallyn-Jones. At around this time Ms Trevallyn-Jones herself engaged building consultants (Moldovan & Associates) to inspect the unit and report on its condition. 37 A report from Mr Warwick MacGregor then of Moldovan & Associates was tabled by Ms Trevallyn-Jones at the Annual General Meeting in July 2004. At that time, according to Mr Radford, "we decided to ask Moldovan to see whether the problem would have been the same in the other three apartments [ie Units 4, 5 and 6]" (T 147 and see Ex 1 p 75 in which Mr Radford conveyed that decision to the agent on 16 August 2004). 38 In other words, before addressing the problem in Unit 7, the existence of which had been confirmed by Moldovan & Associates, the Owners Corporation decided to assess the position in three other units (Units 4, 5 and 6) which had apparently also suffered water penetration problems. In the witness box Mr Radford agreed this was probably an unsatisfactory response, when he knew that the issue (with water penetration to Unit 7) had by then been going on for more than two years. 39 It was then apparently decided (as recorded in the Executive Committee meeting minutes of 20 July 2004, Ex 1 p 72) to call an Extraordinary General Meeting to determine the best approach to the problem (T 149), something that did not take place until 23 November 2004. 40 Meanwhile, by letter dated 2 August 2004 (Ex 1 p 77; Ex D p 13), Ms Trevallyn-Jones had put the Owners Corporation (via the agent) squarely on notice of her intention to rent out her unit and her belief that this was not possible while the parquetry floor remained in its then buckled state. She wrote that, "I wish to be in a position where I can lease my unit, but I am currently unable to do this because water damage to parquetry has not yet been repaired". (I note that this was not only before her relationship with Ms Wickham finally came to an end but it was also well before Ms Wickham moved into the adjacent unit.) Ms Trevallyn-Jones asserted in that letter that parts of the parquetry flooring were "bowed up or loose and (as previously advised) dangerous to walk upon". 41 The building report commissioned by the Owners Corporation from Moldovan & Associates, which was prepared by Mr Warwick MacGregor (who was called by Ms Trevallyn-Jones to give evidence in the proceedings), in late August 2004 recommended immediate rectification work. In particular, Mr MacGregor recommended a "torch-on type membrane" by way of waterproofing. The report, according to Mr Radford, was sent to both Ms Trevallyn-Jones and to the developer of the building (described in Mr Radford's summary as being a company associated with the then owner of the adjacent unit to Ms Trevallyn-Jones, ie the unit which was subsequently acquired by Ms Wickham, and of two other units in the Strata Plan). 42 The August 2004 Moldovan & Associates report outlined two possible scopes of work. The first was described by Ms Trevallyn-Jones colloquially as a "belts and braces" approach (which Ms Trevallyn-Jones considered would cost more than was necessary) and the second as a "cheap and nasty" approach (see letter dated 8 September 2004 from Ms Trevallyn-Jones to Mr Radford, Ex 1 p 83). 43 Emphasis was placed by the Owners Corporation, in the hearing before me, on the fact that Ms Trevallyn-Jones had not "approved" either of the two scopes of work prepared by Moldovan & Associates in August 2004 to address the water problems (and the particulars to paragraph 12 of the Defence refer to a failure of Ms Trevallyn-Jones "to agree to precisely what rectification works were required"). It was not, of course, a matter for Ms Trevallyn-Jones as an individual unitholder unilaterally to approve (or not to approve) common property works (as Mr Radford himself seems to have recognised - Ex 1 p 272; in later correspondence, asserting that the Owners Corporation did not have any obligation to provide her with any documentation in relation to the work - Ex 1 p 283, letter dated 5 June 2007). 44 However, even if the Owners Corporation had reasonably considered obtaining Ms Trevallyn-Jones' approval to be necessary or prudent, the correspondence does not suggest that Ms Trevallyn-Jones' "approval" as such was expressly sought as to this work (and in any event she gave her recommendations and the Owners Corporation in fact for the most part chose not to follow her recommendations). 45 Ms Trevallyn-Jones commented in some detail on the respective scopes of work (see Ex 1 p 83). She agreed in the witness box that it was her opinion that it was inappropriate to obtain quotations for those scopes of work (T 40); she says she suggested instead that there be a mixing and matching of different items of work, as had been suggested by Mr MacGregor himself (T 40). She said in the witness box that she would have been happy for the first scope of work to proceed but felt that it included some items that were more expensive than necessary. (A recurring, and by no means unreasonable, concern on Ms Trevallyn-Jones' part appeared to be to encourage the Owners Corporation to avoid incurring unnecessary costs in work to the common property. What she also, again not unreasonably, sought to encourage the Owners Corporation to do was to appoint appropriately qualified experts to address various aspects of the rectification/repair works.) 46 By letter dated 9 November 2004 (Ex 1 p 116), Ms Trevallyn-Jones wrote to the agent complaining of an injury suffered by her in tripping over uneven parquetry in the unit. Mr Radford accepted in the witness box that this had or should have put the Owners Corporation on notice of a safety issue in relation to the works (T 152). Ms Trevallyn-Jones requested emergency repairs and reported a new problem - an issue of water on the upper (as opposed to the lower) balcony. 47 By letter dated 17 November 2004 (Ex 1 p 118), Ms Trevallyn-Jones wrote to the agent demanding immediate action. In that letter, Ms Trevallyn-Jones referred to a telephone conversation with the agent in which Ms Trevallyn-Jones says she was advised that the Owners Corporation would not carry out emergency repairs (and that this was to be considered at the Extraordinary General Meeting). As previously noted, I do not refer to this letter for the truth of what was asserted. However, I do note that insofar as Ms Trevallyn-Jones made that assertion to the agent, the documentary material tendered does not record any dissent from her assertion that the Owners Corporation had indicated it would not undertake emergency repairs at that stage and was proposing that the matter be considered at the Extraordinary General Meeting. 48 On 23 November 2004, some two months after the Owners Corporation had obtained its own report from Moldovan & Associates, the Owners Corporation held an Extraordinary General Meeting at which it was resolved to carry out works (not just to Ms Trevallyn-Jones' unit, but to others as well) to prevent further water ingress. A number of options for the repair work were put before the meeting. The meeting resolved not to accept the recommendation from Moldovan & Associates for the repairs but, rather, resolved to engage a firm called Act Now Waterproofing ("Act Now") (at the lower of the two quotes put by it) to carry out the remedial work. 49 Relevantly (in terms of the allegation that Ms Trevallyn-Jones had hindered the performance of works by refusing to approve those works), by letter dated 7 December 2004 to the agent (Ex 1 p 144) Ms Trevallyn-Jones wrote: "I acknowledge the Owners Corporation has resolved to proceed with the work and I accept it will proceed" notwithstanding that she also in that letter professed the belief that the Owners Corporation had ignored the advice of, inter alios, the architect Nick Krikis and that she did not have any confidence that the work which was proposed would resolve the problem. She also asserted her belief that it was not unreasonable to expect reasonable notice of the work and to be advised of the overall programme of the work. It appears from that letter that she was raising a particular concern as to whether the unit was to be left unsecured at any time. 50 It was not until December 2004 that arrangements were sought to be made for the inspection of Unit 7 by a representative of the firm (Act Now) engaged to carry out the works (and an issue then arose as to access to the unit). I consider the issue of access later. Nevertheless, as Mr Radford accepted in the witness box, it had taken from 20 July 2004 until December 2004 for the Owners Corporation to engage a builder to look at the problem in Unit 7 (T 150). In the meantime it seems that in November 2004 work was undertaken to the units owned by each of Mr Radford and Mrs Robertson-Swann (the then secretary of the Executive Committee). Remedial work to the unit adjacent to Unit 7 was also apparently scheduled for April 2005. The work to Unit 7 was scheduled for May 2005. 51 The works scheduled for Unit 7 in May 2005 were ultimately postponed, for a week at the workmen's request (Ex D p 54; Ex 1 p 161) and also due to the illness of Ms Trevallyn-Jones' father (Ex D p 55). Rain then further delayed the works. · 2005 52 In early February 2005 Ms Trevallyn-Jones (with the approval of the Owners Corporation) arranged for the installation of an air conditioning unit in Unit 7; the compressor for the air conditioning unit was located on the external wall to the upper balcony with a conduit for electrical power from the inside of the unit. This included, as I understand it, the drilling of a hole in the balcony wall (near the sliding door to the balcony) (T 75). 53 The correspondence in the period from early 2005 to May 2005 suggests that, on Mr Radford's part, he considered Ms Trevallyn-Jones was not being co-operative in relation to access and that, for her part, Ms Trevallyn-Jones was pressing for confirmation from the Owners Corporation as to the repair of the water damaged parquetry flooring. 54 By letter dated 2 February 2005 (Ex 1 p 151), Mr Radford wrote to Ms Trevallyn-Jones, stating that the Owners Corporation "again" was seeking Ms Trevallyn-Jones' "cooperation" in allowing access to her unit and adding the following: "We reiterate however that repair work to your parquetry flooring will not be considered unless the waterproofing and retiling is carried out". 55 Ms Trevallyn-Jones' response (Ex 1 p 153; Ex D p 50) on 28 February 2005 to the agent confirmed the advice she had said she had given verbally in December to Mrs Robertson-Swann that she was happy for the proposed work to the upper balcony waterproof membrane and to the flashings of the lower courtyard to proceed on the basis as outlined in her letter. Ms Trevallyn-Jones confirmed her contact details (both mobile telephone number and mail) and indicated that she would be happy to arrange a suitable time for the work given some notice. 56 By letter dated 21 March 2005 (Ex 1 p 154) Mr Radford again wrote to Ms Trevallyn-Jones, expressing the Owners Corporation's "disappointment" that Ms Trevallyn-Jones did not make contact during February 2005 and advising, "As previously indicated, repairs to the parquetry flooring in your apartment will only be considered once the waterproofing work has been carried out." 57 Ms Trevallyn-Jones appears to have read this correspondence as suggesting there was some issue as to whether the repairs to the parquetry floor would in fact be effected. In particular, Ms Trevallyn-Jones took issue with the word "considered". In her letter of 3 May 2005 to the agent (Ex 1 p 157), copied to Mr Radford and said to be in response to Mr Radford's letters of 21 March 2005 and 26 April 2005, Ms Trevallyn-Jones referred to her "considerable concern" at the comment that repairs to the parquetry would only be "considered", stating that the floor was dangerous underfoot and requesting confirmation that the Owners Corporation would carry out repairs without delay. In that letter, Ms Trevallyn-Jones expressly apologised for not making contact during the month of February noting that: After advising Executive Committee member Annie Robertson-Swann in mid December 2004 that I was happy for tiling work to proceed, and she told me she understood work would likely be scheduled for after Christmas, it did not occur to me to write and confirm that this was fine by me.