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It looks like we’ll all have to wait until January 2014 for the hopelessly inept and cumbersome processes of the Consumer Trader & Tenancy Tribunal to be integrated with (read: replaced by) the NSW State Government’s so-called “Super Tribunal”, the NSW Civil and Administrative Tribunal where Members will be replaced by Deputy Presidents with relevant experience.
Dealing with people who have relevant experience will in itself be a refreshing change!
I just hope that it doesn’t take that long for the reforms to NSW Strata Legislation to be enacted.
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Has anyone ever heard of the NCAT/CTTT ever issuing orders blocking an Owners Corporation spending monies on Legal Fees? Does anyone know of a section of the SSMA under which we could apply for an order?
We recently had a reply from an Adjudicator which said it would be inappropriate for Owners Corporation funds to be spent on a specific matter. Now the Executive Committee wants to go into battle on ‘our’ behalf over this issue, which they could very well lose, and we could be up for a mozza in fines.
Any advice would be greatly appreciated.
@Millie said:
Has anyone ever heard of the NCAT/CTTT ever issuing orders blocking an Owners Corporation spending monies on Legal Fees? Does anyone know of a section of the SSMA under which we could apply for an order?The Act says you can’t spend money on legal action of more than $12,500 or $1,000 per unit (whichever is less) without agreement at a properly convened general meeting. NCAT probably won’t prevent the spending but if it has been done without proper authority, any owner could apply to make sure the people who organised the unathorised spending were held personally liable for doing so.
You could however, try to get an interim order but the money hasn’t really been spent until the bills come in and are paid. A letter from a strata lawyer explaining the law and the consequences of ignoring it might have the effect you desire.
By the way, cases are often thrown out of court these days when the defence argues that the legal fees have not been agreed at a general meeting therefore the action is illegal. Any EC or office bearer who takes legal action without proper authority (except in a genuine emergency, for which permission is given retrospectively) deserves having to pick up the tab themselves.
The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
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