Strata & Building Managers Exposed to NCAT Claims Including Damages

Silberstein v Strata Choice Pty Ltd & Hecker Australia Pty Ltd [2022] NSWCATAP 375

Quick Read

This 2022 decision by the NSW NCAT Appeal Panel is about a claim against a strata manager and building manager as part of a dispute about water entry in a Sydney CBD strata title building. As well as making claims against the strata building, the strata owner claimed that the strata manager and building manager were also liable for breaching common law duties. So, NCAT and the NCAT Appeal Panel had to decide if they could make orders under s 232 against strata and building managers and if that included damages claims. After considering s 232 and other recent Court and Tribunal decisions, the NCAT Appeal Panel decided that it could make orders against anyone who undertook strata functions, s 232 powers depended on whether the dispute came within its terms and not the nature of the legal claim], and there was no limitation on making damages orders if it did. So, it sent the case back to NCAT to reconsider it. The decision is important as it demonstrates how wide NCAT’s general order making powers are including against third parties, over common law duties and for damages orders. It’s also another example of how important the NSW Court of Appeal decision in Vickery’s Case is for NSW strata title disputes.

Implications

NCAT’s general order making powers in s 232 are widely framed.
NCAT orders can be made against anyone who undertakes strata functions.
That includes strata and building managers because of s 66 and s 70.
NCAT orders can be made about any kind of legal claim provided it is within the disputes listed in s 232.
NCAT orders can be made for damages under s 232.

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Full Report & Case Details

This 2022 decision by the NSW NCAT Appeal Panel is about a claim against a strata manager and building manager as part of a dispute about water entry in a Sydney CBD strata title building.

Apart from making claims against the strata building and committee members for orders to do works and pay damages under section 106(5) of the Strata Schemes Management Act 2015, the strata owner also claimed that the strata manager [Strata Choice] and the building manager [Hecker Australia] were liable to her because they did not carry out their functions in relation to the common property faults and repairs with due care, skill and diligence.

Initially, NCAT decided that although it had the power to make orders about the activities of the strata manager and building manager under section 232 of the Strata Schemes Management Act 2015, that power did not extend to making orders for money damages.

The strata owner appealed that preliminary decision.

The key issues to be decided by the NCAT Appeal Panel were what orders section 232 of the Strata Schemes Management Act 2015 authorised [specifically if they included money damages] and how recent strata cases applied.

In making its decision the NCAT Appeal Panel, reviewed section 232 plus the decisions in Vickery v The Owners Strata Plan No 80412 [2020] NSWCA 284 and in Coscuez International Pty Ltd v The Owners-Strata Plan No 46433 [2022] NSWCATAP 147 and concluded …

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Keywords

#NSW #NCATAppealPanel #damages #orders #stratamanager #buildingmanager #2022 #SSMA2015 #s232 #s66 #s70 #SSMA1996 #s138