- This topic has 4 replies, 4 voices, and was last updated 12 years, 11 months ago by .
-
Topic
-
Our building has had some serious defects. We went through the Tribunal and were awarded funds to repair them however we have subsequently found more and more. Our building has had to pay an extra $200,000 as a special levy, then get a strata loan for $500,000, and finally have just had to raise another special levy of $100,000. This is beyond a joke. The EC has activitely worked to keep the strata manager on and refuse to investigate fault. Myself and some of the owners feel we should be looking at liability. These defects should have been identified previously by both the engineer and/ or strata manager. We don’t have a lot of support but I find it difficult to believe people are will just to pay out these huge sums and keep the same incompetent strata managers on. (The principal also took off owing money and us in debt, so we are now with what’s left). In the end I can say it won’t cost me much overall so I can just shut up, pay and have no stress; or we can pursue the strata manager and engineer. Some think it too costly and not worth it. Thoughts?
-
Replies
-
Hi Stratafied,
If the principle of a managing agency have misappropriated the owners corps funds then they should be held accountable. I think there are government assurances in place also which will cover any losses per the Property Stock and Business Owners Act.
Remember that it is not the strata engineers and strata managers whose shoddy building practices caused the defects however you should expect a good manager to provide advice regarding processes in place to follow up and rectify defects in a timely manner. Unfortunately owners corporations sometimes ignore this advice and elect not to engage lawyers / engineers / consultants etc to adequately address the issues as it appears costly at the time.
Check previous minutes of committee and general meetings as the OC may have elected to not follow the legal pathway.
If the OC was not provided with advice from the agent then they may not necessarily be negligent, just a poor agent…
If money was misappropiate by anyone and you can prove it you have a claim under your Strata Insurance Policy
Policy 5 – Fidelity guarantee
What we insure
We will, up to the Sum Insured stated on the Schedule, indemnify You in respect of:
fraudulent misappropriation of Your funds committed during the Period of Insurance.From the CHU PDS so check you own Strata policy and lodge a claim.
Stratafied – I’d advise ascertaining the Engineer’s details including their qualifications, professional affiliations, the nature and extent of their liability / professional indemnity cover, the terms of their appointment including the scope-of-work that was provided by the Owners Corporation (Executive Committee and/or Strata Manager), and the text of what was actually reported by them.
If you’re unable to readily obtain that information such as where the Executive Committee prevaricates, and you’re in NSW, then make an application under S108 of the NSW Strata Schemes Management Act (1996) and provide your Strata Manager with concurrent advice about precisely what records you want to be made available for inspection.
Once you have that information, you and the other Owners will be in a position to better determine the extent of any professional negligence, and will also know from whom and by what process the Owners Corporation may best seek recompense.
I hope it’s not the situation in your case, but I have personal experience with clients such as your Owners Corporation seeking advice from inappropriately qualified and/or less experienced consultants, with either no scope-of-work or with one that’s driven more by a budget than it is by what’s really required.
Anyway, at least the suggested approach should guide you and the others in how hard to push and in whose direction!