ZHAO -v- THE OWNERS OF 5 WIMBLEDON STREET BECKENHAM STRATA SCHEME 40695 [2026] WASC 328
[2026] WASC 328
Page 1
JURISDICTION : SUPREME COURT OF WESTERN AUSTRALIA
IN CIVIL
CITATION : ZHAO -v- THE OWNERS OF 5 WIMBLEDON
STREET BECKENHAM STRATA SCHEME 40695
[2026] WASC 328
CORAM : BYDDER J
HEARD : 20 MARCH 2026
DELIVERED : 17 AUGUST 2026
FILE NO/S : GDA 20 of 2025
BETWEEN : DONG HUA ZHAO
First Appellant
SHAO JUAN FAN
Second Appellant
AND
THE OWNERS OF 5 WIMBLEDON STREET
BECKENHAM STRATA SCHEME 40695
Respondent
ON APPEAL FROM:
Jurisdiction : STATE ADMINISTRATIVE TRIBUNAL
Coram : MS R PETRUCCI, MEMBER
File Number : CC 1171 OF 2023
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Catchwords:
Strata title scheme - Appeal against decision of the State Administrative
Tribunal - Application for resolution of a scheme dispute under s 197(4) of the
Strata Titles Act 1985 (WA) - Whether ordinary resolution at AGM could
authorise a strata council member to execute a strata management contract -
Whether being 'unfinancial' affects a lot owner's right to serve on a strata council
- Whether being 'unfinancial' affects a lot owner's ability to execute contracts -
Whether strata company of a two-lot scheme can establish an administrative
fund - Whether Tribunal could order that a strata company is authorised to
operate an administrative fund
Legislation:
Interpretation Act 1984 (WA) s 10, s 32
State Administrative Tribunal Act 2004 (WA) s 105
Strata Titles Act 1985 (WA) s 3, s 12, s 13, s 14, s 32, s 34, s 37, s 39, s 44, s 86,
s 90, s 99, s 100, s 101, s 102, s 104, s 105, s 118, s 120, s 122, s 123, s 124,
s 125, s 127, s 128, s 129, s 130, s 131, s 135, s 139, s 140, s 143, s 197, s 199,
s 200, s 210, s 211
Strata Titles (General) Regulations 2019 (WA) r 89
Result:
Extension of time in which to appeal granted
Leave to appeal granted in part
Appeal allowed
Matter remitted to State Administrative Tribunal for reconsideration
Category: A
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Representation:
Counsel:
First Appellant : In person
Second Appellant : In person
Respondent : Mr P Monaco
Solicitors:
First Appellant : In person
Second Appellant : In person
Respondent : GV Lawyers
Case(s) referred to in decision(s):
Andrews and The Owners of Coralie Gardens Strata Plan 44374
[2022] WASAT 2
Godwin v Keet [2026] WASC 105
Medical Board of Australia v GLP [2025] WASCA 87
Rechichi and Johnston [2021] WASAT 79
Redset Nominees Pty Ltd and Owners of Spinnakers Apartments Strata Plan
53824 [2021] WASAT 96
Silkchime Pty Ltd v Valuer-General [2023] WASCA 114
Zhao and Packer [2025] WASAT 88
Zhao and The Owners of 5 Wimbledon Street Beckenham Strata Scheme 40695
[2025] WASAT 87
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BYDDER J
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BYDDER J:
Introduction
1 The appellants are the registered proprietors of Lot 2 on Strata
Plan 40695 in Beckenham (Scheme).1 There is only one other lot on the
Scheme, Lot 1. Ms Packer is the registered proprietor of Lot 1.
2 Ms Packer and the appellants have a share in the common property
of the Scheme in accordance with their respective unit entitlements.2
Lot 1's unit entitlement is 54 and Lot 2's unit entitlement is 46.3
3 There is a right of carriageway over a portion of the Scheme's
common property in favour of a neighbouring strata titles scheme,
Strata Plan 40694 (neighbouring strata scheme). The Scheme also has
a right of carriageway over a portion of the neighbouring strata
scheme's common property.
4 In addition to these rights of carriageway, the City of Gosnells has
a right of carriageway and an easement over a portion of the Scheme's
common property. The Water Corporation also has a sewerage
easement over a portion of the Scheme's common property.
5 The rights of carriageway and easements are depicted on the
scheme plan for the Scheme. The management and upkeep of the
common property burdened by the rights of carriageway and easements
is shared equally between the Scheme and the neighbouring strata
scheme.4
6 The Scheme was registered on 7 December 2001.5
7 On registration a strata company was established for the Scheme
(Company), comprising the owners for the time being of the lots in the
Scheme.6 Each of those owners is a member of the Company.7
8 The Company is the respondent to the appeal to this court.
1 Book of documents filed 21 October 2025 (BD) 4 - 5, 7 - 13.
2 Unit entitlements are significant in three respects. The unit entitlement of a lot determines the interest of the
lot owner in the common property in the strata titles scheme, the contributions payable by the owner of a lot
in the scheme (subject to the scheme by-laws) and one form of the voting rights that attach to the lot: see the
Strata Titles Act 1985 (WA) s 13, s 37, s 100, s 120, s 122 and s 135.
3 BD 8.
4 BD 7. As to the nature of a scheme plan, see the Strata Titles Act 1985 (WA) s 12, s 32, s 34 and pt 5 div 1.
5 BD 7.
6 Strata Titles Act 1985 (WA) s 14(1).
7 Strata Titles Act 1985 (WA) s 14(8).
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The appellants make an application to the Tribunal
9 Part 13 of the Strata Titles Act 1985 (WA) (Act)8 provides for
State Administrative Tribunal (Tribunal) proceedings. The first section
of pt 13 is s 197, which provides in subsection (4) that '[a]n application
for resolution of a scheme dispute can be made to the Tribunal by a
party to the dispute'.
10 A dispute is a scheme dispute if it comes within one of the
categories of dispute specified by s 197(1). Relevantly, they include:9
(a) a dispute between scheme participants about -
(i) the scheme documents, including the validity of scheme
by-laws; or
(ii) the performance of, or the failure to perform, a function
conferred or imposed on a person by this Act or the
scheme by-laws; or
(iii) an alleged contravention of this Act (other than an
offence); or
(iv) a resolution or decision of a strata company or the
council of a strata company, including its validity; or
(v) the appointment or election of a member of the council
or an officer of a strata company, including its validity;
or
(vi) any other matter arising under this Act or the scheme
by-laws;
11 As the strata company for the Scheme, the Company is a scheme
participant for the purposes of this provision. The appellants and
Ms Packer are scheme participants for the same purposes, because they
are members of the Company.10
12 On 6 September 2023, the appellants commenced an application in
the Tribunal against the respondent and Strata Administration Services
8 References in these reasons to statutory provisions are references to the Act unless otherwise stated.
9 The Act s 197(1)(a). A dispute about an amount owed as a debt is not a scheme dispute (the Act
s 197(3)(f)), subject to two exceptions that are irrelevant to this appeal: see the Act s 99(2) and sch 2A
cl 53E, which are concerned with certain debts relating to insurance.
10 The Act s 197(2)(a) and (d) respectively.
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Pty Ltd (SAS) under s 197(4). In their application, the appellants sought
the following orders:11
1. An external auditor or accountant to conduct a review of the
accounts for the past 7 years due to discrepancies in the
accounts. This includes but is not limited to:
a) Annual meeting records are not true.
(1) The differences between the charged fees and
real expenditure.
(2) Some of the budget is too high.
b) Strata Administration Services Pty Ltd ACN 082 419
645 (Strata Manager) is the strata manager for the
Strata Company added the ATO/BAS and OH/S fees to
increase the management fees that was not agreed to.
c) The Strata company bank statement lacks details:
(1) For example, money has been taken away
from the account however it is not shown
exactly what expenditure it was.
2. Strata Plan 40695 is a 2-lot Scheme within the definition of
s 3(1) of the Act and thus we request the Tribunal review each
resolution made by the Strata Company within the last 7 years as
we are of the opinion that certain resolutions by the Strata
Company were not in accordance with the Act.
3. We ask the Strata Company and by extension the Strata
Manager provide us with all contracts (including insurance
contracts) that the Strata Company is a party to.
4. That the Strata Company terminates the contract with the Strata
Manager due to negligence and mismanagement on their part.
a) During their service from 2001 till 2022, we suffered a
great financial loss because of their irresponsible
management.
b) When they decide to do something, they do not give us
any notice or require our consent or signature.
c) Constant lack of communication and outright ignoring
us in relation to answers to our issues and questions.
11 BD 6.
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5. The Strata Company has filed Magistrate's Court claim against
us Case 3847/2023 and we request the matter be moved to the
jurisdiction of the Tribunal.
13 At a directions hearing on 29 September 2023, SAS was removed
as a party to the proceeding because a strata manager is not a scheme
participant.12 The appellants commenced a separate application against
SAS under s 198(1) seeking authorisation to apply to the Tribunal to
remove SAS as the strata manager. The Tribunal dismissed that
application13 and no appeal has been brought by the appellants from the
Tribunal's decision in that proceeding.
14 At a directions hearing on 30 April 2024, the Tribunal ordered
that:14
The five orders sought in the application are discontinued and the
matter is to […] proceed to hearing on the four issues outlined in the
applicants' statement of issues, facts and contentions[.]
15 Those four issues, as recorded by the Tribunal in its Reasons, were
as follows:15
1. Whether the strata managers for the [Company] - Strata
Administration Services Pty Ltd … trading as Strata
Administration Services ([s]trata [m]anager) are strata
managers within Part 9 of the [Act] and in particular whether a
strata management contract is in force between the [Company]
and the [s]trata [m]anager.
2. Whether administration levies have been properly levied in
accordance with the [Act].
3. Whether there is an issue with the accounts of the [Company].
4. Whether the current lawyers of the [Company] have standing to
act on behalf of the [Company] and is there a conflict of interest.
16 The Tribunal was satisfied that it had jurisdiction to determine the
dispute as defined by those four issues. The Tribunal took this view
because each of the appellants and the Company are scheme
participants, the scheme dispute within the meaning of s 197(1)
12 Tribunal's reasons for decision in Zhao and The Owners of 5 Wimbledon Street Beckenham Strata
Scheme 40695 [2025] WASAT 87 (Reasons) [8].
13 Zhao and Packer [2025] WASAT 88. Ms Packer was joined as a respondent to that proceeding on
29 November 2024, see [3].
14 Reasons [3].
15 Reasons [4].
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comprised the four issues and the appellants made their application to
the Tribunal under s 197(4).16
17 The Tribunal also noted that the proceeding came within its
original jurisdiction under s 209. As such, the Tribunal said, its role was
not inquisitorial but rather:17
[T]o make a decision on the basis of the evidence presented to it and the
usual practice is that the parties have the management of their
respective case. Therefore, Mr Zhao and Ms Fan, as the applicants, bear
the burden of proving their case, that is, persuading the Tribunal that
they are entitled to the relief (orders) they seek, being the civil standard
of proof, being on the balance of probabilities.
18 The final hearing was held on 7 and 8 April 2025, at which the
Tribunal accepted into evidence a hearing book prepared by the
Tribunal on 24 March 2025 and comprising 1,140 pages (as exhibit 1)
and an email dated 27 July 2020 from Mr Kiddle of SAS to the
appellant Mr Zhao comprising one page (as exhibit 2).18
19 The learned Member also heard oral evidence from the appellants
and Mr Kiddle. Each of them confirmed the contents of a witness
statement they had made for the Tribunal proceeding.19
The Tribunal's decision
20 Final written submissions were received on 29 May 2025 and the
Tribunal handed down its decision on 26 August 2025.
21 After observing that the 'factual framework of the dispute is
agreed or is uncontroversial', the Tribunal made findings of fact about
the Scheme, the Company, the owners of Lot 1 and Lot 2 and the
common property cost sharing agreement.20 I have referred to most of
those facts above.
22 The Tribunal considered each of the four issues in turn and
decided that the appellants failed on each issue.21
23 The Tribunal then considered the principles applicable to its
discretion to make declarations and orders22 and whether to make any
16 Reasons [10].
17 Reasons [11].
18 Reasons [13].
19 Reasons [14].
20 Reasons [15] - [25].
21 Reasons [27] - [89].
22 Reasons [90] - [92].
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declarations or orders in respect of the four issues.23 The Tribunal
concluded:24
[I]t is reasonable in all of the circumstances of this case, to exercise the
Tribunal's discretionary powers under s 199 and s 200 of the [Act] to
make the following declarations and orders for the reasons explained
above and in summary:
(a) to formalise arrangements including with respect to the
administrative fund; and
(b) to create certainty for the parties and to minimise any further
disputes and litigation as there is a real and substantial
disharmony on the part of Mr Zhao and Ms Fan which has
persisted since about July 2020 when they stopped paying
contributions (strata levies) to the strata company.
Orders
The Tribunal orders:
1. Pursuant to s 199(3) of the Strata Titles Act 1985 (WA) the
Tribunal declares:
(a) the strata manager, Strata Administration Services, was
validly appointed under the strata management contract
entered into between the respondent and Strata
Administration Services in or about 2020 and again in
or about 2022;
(b) the respondent is authorised to perform the designated
function of operating an administration fund pursuant
to … s 100(1) and 140(3) of the Strata Titles Act 1985
(WA); and
(c) GV Lawyers, was validly appointed under the costs
agreement in or about 2023.
2. Pursuant to s 200(2) of the Strata Titles Act 1985 (WA) the
Tribunal orders:
(a) the strata manager, Strata Administration Services, was
validly appointed under the strata management
contracts entered into between the respondent and
Strata Administration Services firstly in or about 2020,
and secondly in or about 2022;
23 Reasons [93] - [103].
24 Reasons [105].
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(b) the respondent is authorised to perform the designated
function of operating an administration fund pursuant
to s 100(1) and s 140(3) of the Strata Titles Act 1985
(WA); and
(c) GV Lawyers was validly appointed under the costs
agreement in or about 2023.
3. Pursuant to s 200(4) of the Strata Titles Act 1985 (WA) the
Tribunal orders:
(a) order 2(a) above is to be taken to have come into effect
on the date the respondent entered into each of the
strata management contracts in or about 2020 and in or
about 2022;
(b) order 2(b) above is to be taken to have come into effect
on the date the respondent created the administration
fund; and
(c) order 2(c) above is to be taken to have come into effect
on the date the respondent entered into the cost
agreement in or about 2023.
4. The application is otherwise dismissed.
24 I refer to the Tribunal's reasons in more detail below in the context
of the appeal to this court.
The appeal to this court
25 By an appeal notice filed on 20 October 2025, the appellants
relevantly sought an extension of time in which to appeal and leave to
appeal from the Tribunal's decision.
Extension of time
26 An application for leave to appeal from the Tribunal's decision
must be made within 28 days after the Tribunal's decision, although that
time may be extended by the court even if the time limit has passed.25
As I have noted, the Tribunal's decision was made on 26 August 2025
and the appeal notice was filed on 20 October 2025. The application for
leave to appeal was therefore made after the time limit had passed.
27 The appellants rely on an affidavit sworn on 15 October 2025 and
filed on 20 October 2025 in support of their application for an
25 State Administrative Tribunal Act 2004 (WA) (SAT Act) s 105(5) and s 105(7).
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extension of time. The affidavit deposes, and attaches documents
reflecting, that:
(a) the appellants sought internal review of the learned Member's
decision on 22 September 2025 under the mistaken belief that
an internal review was available under s 210;
(b) the appellants were informed by the Tribunal on 26 September
2025 that they were not entitled to seek internal review under
s 210;
(c) they always intended to appeal the orders made by the Tribunal
and had done so as quickly as possible.
28 The last day for the appellants to commence their application to
this court for leave to appeal within time (or to seek internal review if it
was available under s 210) was 23 September 2025. They took the
mistaken step of seeking internal review on 22 September 2025.
29 The appellants' notice of appeal was filed on 20 October 2025,
24 days after the Tribunal informed the appellants that they were not
entitled to seek internal review under s 210.
30 The evidence is consistent with the appellants acting with
reasonable speed, albeit at first mistakenly. The respondent neither
contends nor has sought to lead evidence to the effect that the
respondent is materially prejudiced by the appellants' delay in
commencing their application to this court for leave to appeal. In all the
circumstances and assuming that the appellants should be granted leave
to appeal on at least one of the questions on which they seek to rely, it
would be appropriate to grant the appellants an extension of time in
which to apply for leave to appeal.
31 If leave to appeal should not be granted on any of the questions on
which the appellants seek to rely, then the application for an extension
of time should be refused because an extension of time would be futile.
Leave to appeal
32 The appellants may appeal from the Tribunal's decision to this
court, but only if leave to appeal is granted.26 The appeal can only be
brought on a question of law.27
26 SAT Act s 105(1) and s 105(3)(b).
27 SAT Act s 105(2).
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33 The principles applicable to the grant of leave to appeal were
recently recalled by the Court of Appeal in Medical Board of Australia
v GLP:28
As this Court recognised in Paridis v Settlement Agents Supervisory
Board, the power to grant leave is conferred in general terms and leave
should be granted if, in all of the circumstances, it is in the interests of
justice that there should be a grant of leave.
While the ultimate issue is whether the grant of leave is in the interests
of justice, Buss JA in Paridis stated that, in considering whether to
grant leave, regard should be had to the guidelines articulated by the
court in Secretary to the Department of Premier and Cabinet v Hulls.
In Hulls, Phillips JA said:
When leave is sought to appeal … it will be necessary for the
applicant to identify a question of law which is relevant to the
granting of the relief sought on appeal. The importance of the
question, either generally or to the would-be appellant in the
particular case, will probably be relevant. The applicant must
show that there is a real or significant argument to be put on that
question of law at least to this extent: that there is sufficient
doubt about it to justify the grant of leave. Moreover, it may
have to be shown that to allow the error to go uncorrected would
impose substantial injustice, although, where the order below is
final, that injustice will often be more readily discernible.
These guidelines are relevant. They are not, as Buss JA emphasised in
Paridis, determinative. Whether leave is granted must depend upon the
circumstances of each particular case. In this regard, the grant of leave
should not be regarded as a perfunctory exercise. The legislative
purpose in requiring the grant of leave is to reduce unnecessary appeals
from decisions of the Tribunal.
34 On 24 November 2025, Quinlan CJ ordered that the appellants'
application for leave to appeal be heard together with the appeal.
Appeal on a question of law
35 In Silkchime Pty Ltd v Valuer-General,29 the Court of Appeal
explained the nature of an appeal from the Tribunal and referred to an
oft-adopted summary of principles which assist in identifying questions
of law:
28 Medical Board of Australia v GLP [2025] WASCA 87 [39] - [41] (Quinlan CJ, Vaughan & Archer JJA)
(footnotes omitted).
29 Silkchime Pty Ltd v Valuer-General [2023] WASCA 114 [71] - [72] (Buss P, Beech JA & Morrison AJA)
(footnotes omitted).
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As has been explained in many cases, while termed an appeal, the
'appeal' is in the nature of judicial review. The function of the court is,
and is only, to examine what the Tribunal has done for legal error.
Where, as here, an appeal lies 'on a question of law', the question (or
questions) of law is the entirety of the subject matter of the appeal. If,
on proper analysis, the question raised by a litigant is not a question of
law, linguistic gymnastics in the formulation of the grounds of appeal
cannot convert it into a question of law.
In a summary of principles adopted by this court on numerous
occasions since, in Paridis v Settlement Agents Supervisory Board,
Buss JA, as his Honour then was, stated the following further
propositions (Wheeler and Pullin JJA agreeing):
(1) A question of mixed fact and law is not a question of law within
s 105(2).
(2) A ground of appeal which asserts the decision is against the
evidence and the weight of the evidence does not raise a
question of law.
(3) A tribunal does not commit an error of law merely because it
finds facts wrongly or upon a doubtful basis.
(4) A ground of appeal that a tribunal has made a finding which is
manifestly unreasonable, in the sense that no reasonable tribunal
could have made that finding, alleges an error of law.
(5) A ground of appeal that a tribunal has failed to take into account
a consideration which, in the circumstances, it was bound to
take into account alleges an error of law.
The questions on which the appellants seek to rely
36 The appellants seek to rely on what they contend are ten questions
of law, distributed across five issues.30 They have formulated the issues
and questions as follows:
[Issue 1] Whether the [Tribunal] erred in finding that SAS was validly
appointed under either or both of the 2020 Contract or the 2027
Contract.31 In particular whether the [Tribunal] erred in:
(a) the application of s 118 of the [Act] that a contract is valid even
if it is signed only by one of the owners of a two-lot title.
30 Notice of appellants' grounds to appeal decision filed 20 October 2025 [2(d)]; appellants' outline of
submissions filed 20 February 2026 [11] - [15]. Issues 3, 4 and 5 are three of the questions of law on which
the appellants rely.
31 These are references to strata management contracts. The Tribunal's reasons only refer to strata
management contracts dating from 2020 and 2022. These reasons also refer only to strata management
contracts dating from those years.
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(b) finding that the Appellants were 'unfinancial'.
(c) that even if the Appellants were unfinancial whether it precludes
them from their rights as members of the strata council or their
rights to execute contracts; and
(d) whether SAS had a right to vote in respect of a proxy under
[s] 124 of the [Act].
[Issue 2] Whether the [Tribunal] erred in finding that the Respondent is
authorised to perform the designated function of operating an
administration fund pursuant to … s 100(1) and [s] 140(3) of the [Act].
In particular whether:
(a) the [Tribunal] had any power to make any orders when no
s 140(3) application was made by any member of [the Scheme].
(b) the [Tribunal] considered all factors relevant to the exercise of
discretion to determine whether a two-lot strata scheme should
have an administrative fund; and
(c) the [Tribunal] failed to provide procedural fairness to all the
owners an opportunity to respond to a decision to impose an
administrative fund.
[Issue 3] Whether the [Tribunal] erred in finding that [the appellants]
are liable to pay for strata manager fees, electricity, insurance
brokerage, stamp duty and GST. In particular whether [the Tribunal]
failed to give proper consideration to the Appellants in respect of the
claims provided in the Accounts Discrepancies [that is, 'Discrepancies
due to Bank Account - Book of Documents Page 550-553'].
[Issue 4] Whether the [Tribunal] erred in finding that GV [Lawyers]
was [validly] appointed especially considering the absence of any
resolution or participation by both lot owners.
[Issue 5] Whether the [Tribunal] failed to properly exercise its
discretion in relation to the making of the Orders. In particular whether
the [Tribunal] erred in law in its construction and application of
ss 199(3) and 200(1) - (4) of [the Act] in exercising its discretion to
make and backdate declarations and orders.
37 As the question (or questions) of law is the entirety of the subject
matter of the appeal, it is necessary that I consider each proposed
question and determine whether leave to appeal should be granted on
that question.
38 The appellants are unrepresented. In considering the issues
identified by the appellants and the questions which they contend are
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questions of law in respect of each issue, I recognise that I must 'take
care so as not to unfairly misinterpret the grounds based on a purely
legalistic reading of them, and due allowance should be given in this
regard'.32
Issue 1 - s 118 of the Act
39 This raises a question of law within the meaning of s 105(2) of the
SAT Act.
40 Making due allowance for the appellants being unrepresented, the
question of law is whether Ms Packer was authorised under s 118 to
execute strata management contracts between the Company and SAS
from 2020, based on facts which are not in dispute.33 I address those
facts in considering this question.
41 I would grant leave to appeal on this question.
Issue 1 - 'unfinancial'
42 Whether the appellants were 'unfinancial' at any relevant time -
that is, relevantly, whether they owed strata levies to the Company34 -
will only be a question of law within the meaning of s 105(2) of the
SAT Act to the extent that it is concerned with the entitlement to cast
the vote held by Lot 2 on ordinary resolutions, based on facts which are
not in dispute. I address those facts in considering this question.
43 Making due allowance for the appellants being unrepresented, the
question of law is whether there was an outstanding amount
recoverable under the Act owed to the Company by the appellants as
owners of Lot 2, such that they could not cast the vote attached to Lot 2
on an ordinary resolution.
44 I would grant leave to appeal on this question.
32 See Godwin v Keet [2026] WASC 105 [56] (Lundberg J). Counsel for the Company submitted at the
hearing of this appeal that the appellants 'have legal representation, but they're not here. Everything that the
appellants have done in the Magistrates Court and in the tribunal and now here has been underwritten by a
legal trained person': ts 20. On that basis, counsel did not agree that I should take the approach I have
outlined here. However, there was no evidence before me to support counsel's submission.
33 I note for completeness that no reliance was placed by the Tribunal or either party on s 139 of the Act,
which deals with contract formalities. It would not be appropriate for me to do more than note s 139, given
the lack of reliance on the provision by the Tribunal or any party at any stage of these proceedings. Further,
assessing whether reliance can be placed on s 139 to uphold the validity of any of the strata management
contracts may require not only submissions but evidence. It is not an assessment that can be made in this
appeal.
34 See Reasons [44] - [56].
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Issue 1 - the effect of being 'unfinancial'
45 This raises a question of law within the meaning of s 105(2) of the
SAT Act.
46 Making due allowance for the appellants being unrepresented, the
question of law is whether being 'unfinancial' materially affected the
appellants' rights as a council member (noting only one of the
appellants can be a council member) or in relation to the execution of
strata management contracts.
47 I would grant leave to appeal on this question.
Issue 1 - whether SAS had a right to vote as a proxy
48 The appellants contend that SAS could not vote as a proxy for
Ms Packer on a resolution in relation to the Company making, varying
or extending a strata management contract with SAS. The appellants
submit that SAS could not do so because of s 125(2) and the lack of
compliance with s 125(3) and s 125(4).
49 This argument was never raised before the Tribunal.35
The Tribunal cannot have erred by failing to address an argument that
was never made to the Tribunal.
50 Further, this proposed question involves two questions of fact:
first, whether notice had been given of a proposed resolution to appoint
SAS as strata manager in the manner required by s 125(3)(a) and
s 125(4); and second, whether the instrument by which Ms Packer
appointed SAS as her proxy expressly authorised SAS to vote on the
resolution and specified whether SAS was to vote for or against the
resolution, as required by s 125(3)(b).
51 Once those two questions are answered, a question of law may
arise in respect of the legal consequences of the facts as found. As such,
this question is a question of fact or of mixed fact and law. It is not a
question of law within the meaning of s 105(2) of the SAT Act.
35 At the hearing, the appellant Mr Zhao could not remember whether the argument had been raised before
the Tribunal. The appellant Ms Fan did not make any submission on whether the argument had been raised
before the Tribunal. Counsel for the Company submitted that it did not emerge in the Tribunal proceedings
and noted that there was no reference to s 125 of the Act in the Reasons: ts 46 - 47, 61. On my review of the
appellants' statement of issues, facts and contentions before the Tribunal (BD 345 - 351) and on searching for
'125' and 'conflict' in the Book of Documents (which includes the transcript of the various appearances before
the Tribunal, including the final hearing, at BD 1024 - 1140), there appears to be no reference to s 125 of the
Act or to any argument made before the Tribunal that SAS could not vote as a proxy for Ms Packer.
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52 I would refuse leave to appeal on this question.
Issue 2 - was the Company authorised to operate an administrative fund?
53 Whether the Company was authorised to operate an administrative
fund in light of s 100(1) and s 140(3) is a question of law within the
meaning of the SAT Act s 105(2). The facts relevant to this question
are not in dispute.
54 However, the Tribunal accepted that under s 140(1)(b), the
Company cannot establish an administrative fund unless required to do
so by the Scheme's by-laws because the Scheme has only two lots. The
Tribunal also accepted that those by-laws did not require the Company
to establish an administrative fund. So much was conceded by the
Company before the Tribunal.36
55 The Tribunal was correct. The Act imposes a range of functions on
a strata company.37 However, s 140 provides special rules for a 2-lot
scheme,38 such as the Scheme, which affect those functions.
56 The strata company for a 2-lot scheme may, but is not required to,
perform a designated function.39 Further, the strata company cannot
establish an administrative fund unless required to do so by the strata
scheme's by-laws.40 As the Scheme's by-laws did not so require, the
Company could not establish an administrative fund.
57 It follows that this proposed question does not involve a question
of law which when answered may identify any error on the Tribunal's
part. For that reason, I would refuse leave to appeal on this question.
Issue 2 - whether the Tribunal was empowered to make orders 1(b), 2(b) and
3(b)
58 Whether the Tribunal was empowered to make orders 1(b), 2(b)
and 3(b), (which are reproduced above at [23]) raises a question of law
within the meaning of s 105(2) of the SAT Act.
36 Reasons [64].
37 See especially the Act pt 8 div 1.
38 That is, a strata titles scheme in which there are two lots: the Act s 3(1) (definition of '2, 3, 4 or 5-lot
scheme').
39 That is, a function conferred on a strata company by s 100(1)(a) (administrative fund), s 101 (accounting
records and statement of account), s 104(1)(b) (minutes of meetings), s 104(3)(a) (letterbox) or s 105(1)
(roll to be kept by strata company), or a function prescribed by regulation to be a designated function: the Act
s 140(1)(a) and s 140(4).
40 The Act s 140(1)(b). As the strata scheme does not provide specifically for its by-laws, they are taken to be
the by-laws set out in the Act sch 1 and sch 2: the Act s 39.
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59 Making due allowance for the appellants being unrepresented, the
question of law is whether the Tribunal in resolving a scheme dispute
under pt 13 could make orders authorising the Company to establish an
administrative fund without an application having been made under
s 140(3).
60 I would grant leave to appeal on this question.
Issue 2 - whether the Tribunal considered all relevant factors
61 Whether the Tribunal considered all factors relevant to
determining whether the Scheme should have an administrative fund
does not give rise to any question of law within the meaning of the SAT
Act s 105(2).
62 In any event, as will appear from my reasons it will be necessary
for this matter to be returned to the Tribunal for reconsideration. In
those circumstances, it is unnecessary to consider this question.
63 I would refuse leave to appeal on this question.
Issue 2 - procedural fairness
64 This question raises a procedural fairness issue in respect of the
Tribunal making orders 1(b), 2(b) and 3(b) to authorise an
administrative fund.
65 As I have said, it will be necessary for this matter to be returned to
the Tribunal for reconsideration. In those circumstances, it is
unnecessary to consider this question.
66 I would refuse leave to appeal on this question.
Issue 3 - whether the Tribunal failed to give proper consideration in respect
of account discrepancies
67 This question is not a question of law within the meaning of
s 105(2) of the SAT Act, as the appellants accepted.41
68 I would refuse leave to appeal on this question.
Issue 4 - whether GV Lawyers were validly appointed
69 This raises a question of law within the meaning of s 105(2) of the
SAT Act.
41 ts 50.
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70 Making due allowance for the appellants being unrepresented, the
question of law is whether Ms Packer was authorised under s 118 to
enter into a cost agreement between the Company and GV Lawyers,
based on facts which are not in dispute. I address those facts in
considering this question.
71 I would grant leave to appeal on this question.
Issue 5 - whether the Tribunal erred in law in its construction and application
of s 199(3) and s 200(1) - (4)
72 As developed in the appellants' written submissions,42 this
proposed question is solely concerned with the Tribunal's orders
authorising an administrative fund with retroactive effect and does not
raise any question of how s 199(3) or s 200 are to be construed.
73 The appellants do not suggest that decisions to which the Tribunal
referred43 as summarising the principles and factors to consider in
determining whether or not to exercise the Tribunal's powers to make
declarations under s 199 or orders under s 200 are incorrect. Instead,
the appellants contend that the Tribunal failed to properly exercise its
discretion in respect of those powers.
74 As I have said, it will be necessary for this matter to be returned to
the Tribunal for reconsideration. In those circumstances, it is
unnecessary to consider this question.
75 I would refuse leave to appeal on this question.
The questions of law in this appeal
76 In light of the above, there are five questions of law which fall for
consideration in this appeal. It is convenient to consider those questions
in the following order.
1. Was Ms Packer authorised under s 118 to execute strata
management contracts between the Company and SAS from
2020?
2. Was Ms Packer authorised under s 118 to enter into a cost
agreement between the Company and GV Lawyers?
42 AS [71] - [86]. The appellants did not materially add to their submissions on this question in oral
argument.
43 Reasons [91] - [92].
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3. If the appellants were 'unfinancial', did that materially affect
their rights as a council member or in relation to the execution
of strata management contracts?
4. Was there an outstanding amount recoverable under the Act
owed to the Company by the appellants as owners of Lot 2,
such that they could not cast the vote attached to Lot 2 on an
ordinary resolution?
5. Could the Tribunal in resolving a scheme dispute under pt 13
make orders authorising the Company to establish an
administrative fund without an application having been made
under s 140(3)?
Question 1: was Ms Packer authorised under s 118 to execute strata
management contracts between the Company and SAS from 2020?
The Tribunal's reasons
77 It was not in dispute before the Tribunal that only Ms Packer
(as the owner of Lot 1) signed the strata management contracts with
SAS which were required under the Act from 2020 if SAS was to be
authorised to perform functions as a strata manager.44 The Tribunal
held that those contracts (signed in 202045 (2020 Contract) and 202246
(2022 Contract)) were effective for essentially the following reasons.
78 A strata company may, subject to the Act, authorise a strata
manager to perform specified 'scheme functions', such as controlling
and managing the common property for the benefit of all owners.47
79 The functions of a strata company are to be performed by its
council, subject to the Act and to any restriction imposed or direction
given by ordinary resolution of the strata company. In the case of the
Scheme, both the owner of Lot 1 and the owners of Lot 2 are members
of the Company's council (Council).48 At Council meetings, all matters
must be determined by a simple majority vote.49
44 Reasons [27(a)], [28].
45 Reasons [54].
46 Reasons [56].
47 Reasons [36].
48 Reasons [36] - [37].
49 Reasons [41].
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80 For a two-lot scheme such as the Scheme, a quorum is constituted
at a general meeting of the strata company if there are present persons
entitled to cast a vote attached to each of the lots.50
81 The owner of each lot in a strata titles scheme is entitled to one
vote on a proposed resolution of the strata company. Where a lot has
more than one owner, the co-owners may only cast one vote through a
single proxy (who may be one of the co-owners).51
82 Resolutions passed at a general meeting of a council may be
ordinary resolutions unless the Act otherwise requires. For an ordinary
resolution, votes must be counted by the number cast unless a person
entitled to cast a vote demands that they be counted by the number of
unit entitlements of the lots for which votes are cast. If such a demand
is made, the votes are counted by unit entitlement.52
83 With certain irrelevant exceptions, a lot owner is not entitled to
cast a vote on an ordinary resolution if the owner has an outstanding
amount such as strata levies owed to the strata company. In such a case,
the lot owner is usually referred to as 'unfinancial' and is not entitled to
vote. Further, resolutions can only be proposed by an owner who is
entitled to vote on the resolution.53
84 As a resolution to appoint a strata manager is an ordinary
resolution of a strata company, a lot owner is ineligible to cast a vote on
that resolution while 'unfinancial'.54 At least since 2021, the appellants
have been unfinancial as the appellants accept that they have not paid
any strata levies to the Company since about July 2020 (assuming that
they are required to pay those levies).55
85 The appellants were financial and therefore entitled to vote on
ordinary resolutions on 24 June 2020 (when the 2020 annual general
meeting (AGM) of the Company was held).56 At the 2020 AGM, the
following resolution (2020 Resolution) was passed by two votes to
zero:57
50 Reasons [42].
51 Reasons [38].
52 Reasons [39] - [40], [43].
53 Reasons [44] - [46].
54 Reasons [47].
55 Reasons [47] - [50].
56 Reasons [52].
57 BD 635; Reasons [48].
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6.4 Execution of Documents - Motion under Notice
That the Strata Council is authorised to enter and execute contracts,
agreements, undertakings or other legally binding arrangements from
time to time, which are necessary to achieve the Strata Company's
General Duty.
86 The 2020 Contract was not an agenda item for the 2020 AGM.
Such contracts are not discussed at the AGM unless an owner
specifically requests a discussion and no such request was made for the
2020 AGM.58
87 On 27 July 2020, when the appellants were still financial,
Mr Kiddle of SAS wrote to the appellants by email asking them to sign
the 2020 Contract. The appellants did not sign the 2020 Contract but
Ms Packer as the owner of Lot 1 did.59
88 While there are no minutes of a Council meeting, the
circumstances were that the appellants had been given the opportunity
to sign the 2020 Contract and had not done so, there had been a strata
manager in place, Ms Packer supported the strata manager continuing
and the Act now required that a contract be in place. In those
circumstances, it was appropriate and it can be inferred that after the
appellants refused to sign the contract a vote by the number of unit
entitlements was undertaken. As Ms Packer (as the owner of Lot 1) had
more than 50% of the sum of the unit entitlements, she signed the
contract and thereby satisfied the requirements of s 123(7)(b)(ii).60
89 A similar resolution to the 2020 Resolution was passed at the 2021
AGM, the 2022 AGM and the 2023 AGM. The appellants did not
attend the 2021 AGM or the 2022 AGM, but they did attend the
2023 AGM.61
90 When the 2022 Contract was being considered, the appellants
were 'unfinancial' and ineligible to cast a vote on an ordinary resolution.
Ms Packer as the owner of Lot 1 was the only owner eligible to vote
and it was unnecessary to cast a vote because Ms Packer, as the sole
owner entitled to vote, signed the 2022 Contract. It is unnecessary to
consider whether a vote by the number of unit entitlements was
undertaken, but it is clear that Ms Packer has more than 50% of the sum
58 Reasons [53].
59 Reasons [52], [54].
60 Reasons [54].
61 Reasons [50] - [51].
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of the unit entitlements and therefore meets the requirements of
s 123(7)(b)(ii).62
The appellants' submissions
91 The appellants relevantly submit that:
(a) a member of a strata scheme's right to vote on ordinary
resolutions at a meeting is completely separate from the
member's rights to sign documents or rights as a member of the
Council;
(b) the 2020 Resolution authorised the Council to enter into
contracts but did not require the Council to do so and instead
merely complied with the requirements for the execution of
documents under s 118(2);
(c) there was never any meeting of the Council nor was there any
delegation by the Company or the Council to Ms Packer to sign
any contracts (including the 2020 Contract);
(d) the requirements for voting on ordinary resolutions are different
from the execution requirements under the Act and there was no
vote in respect of the 2020 Contract as it was not presented
during the 2020 AGM;
(e) the appellants chose not to sign the 2020 Contract and were
under no obligation to sign it and because they did not sign it,
the 2020 Contract is not in force;
(f) to the extent that the appellants were unfinancial, that only
precluded them having a vote in respect of an ordinary
resolution and did not otherwise affect their rights, including in
relation to the execution of contracts and otherwise voting at
meetings of the Council as contemplated by sch 1 cl 8; and
(g) whether an ordinary resolution is passed by unit entitlements or
the number of votes cast (and the appellants dispute that any
vote was taken at all on any strata management contract), that
has no bearing on whether or not a contract is signed.
62 Reasons [56].
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The Company's submissions
92 The Company relevantly submits that:
(a) the Tribunal's reasons are correct;
(b) the 2020 Resolution authorised the Council to enter into and
execute contracts that were necessary;
(c) the 2020 Contract became necessary given the requirements of
s 144, the history of the Company engaging SAS and the
owners, including the appellants, using the services of SAS as
strata manager;
(d) Ms Packer had capacity to sign the 2020 Contract on behalf of
the Company in accordance with the Resolution and because
Ms Packer as the owner of Lot 1 had more unit entitlements
than the appellants as the owners of Lot 2;
(e) a similar resolution to the 2020 Resolution was passed at the
2021 AGM, the 2022 AGM and the 2023 AGM and since 2020
strata management contracts have been signed by Ms Packer but
not the appellants;
(f) each of the strata management contracts since 2020 have been
validly entered into in light of the above;
(g) it was necessary for the Company to proceed as it did given the
practicalities of governing a very small strata scheme such as
the Scheme and the long history of SAS being the Scheme's
strata manager, which the strata management contracts sought
to continue; and
(h) if the 2020 Resolution did not authorise Ms Packer to sign the
2020 Contract (or subsequent contracts), the appellants have
suffered no substantial injustice because all that has happened is
that SAS continues to be the strata manager from 2020 when it
had been the strata manager for years before with the appellants'
support and throughout those periods the appellants have had
the benefit of the services of SAS.
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Consideration
There must be a written strata management contract between the Company
and SAS for SAS to be authorised to perform functions as a strata manager
93 Subject to the Act and to any restriction imposed or direction
given by ordinary resolution of a strata company, the strata company's
governing body is to perform the strata company's functions.63
94 A strata company's governing body is called the council of the
strata company.64 The council must be constituted and perform its
functions in accordance with the Act and the scheme by-laws.65
95 As the Scheme comprises only two lots, its Council consists of all
of the owners of those lots.66 However, as Lot 2 is co-owned only one
of the appellants is eligible to be a member of the Council, as
nominated by them or determined pursuant to sch 1 cl 4(6).67
96 A strata company may authorise a person, called a strata manager,
to perform a specified scheme function.68 The authorisation is subject to
any conditions specified by the strata company and may be varied or
revoked by the strata company.69
97 Since 1 May 2020, when the Strata Titles Amendment Act 2018
(WA) pt 2 (Amendment Act) commenced operation, the strata
company's authorisation has not been enough for a person to be
authorised to perform functions as a strata manager. Section 144
requires that a written strata management contract addressing the
matters set out in s 145(1) also be in force between the strata manager
and the strata company.70
63 The Act s 135(1).
64 The Act s 14(6).
65 The Act s 135(2).
66 The Act s 39 and sch 1 cl 4(3). The by-laws provided for by the Act sch 1 and sch 2 apply to the Scheme,
because they have not been amended or repealed and no additional by-laws have been made under the Act
s 44: ts 24.
67 I note that the Company has from time to time passed ordinary resolutions 'that the number of Strata
Council members consist of three owners' (see for example BD 635, which is a page from the minutes of the
2020 AGM).
68 The Act s 143(1). The strata manager cannot be authorised to perform any of the functions specified in the
Act s 143(5). Further, if the strata company's performance of the function requires a particular kind of
resolution, the strata manager may perform the function only if a vote has been taken on a proposed
resolution and it has been passed as a resolution of the relevant kind: the Act s 143(3).
69 The Act s 143(2).
70 Transitional provisions exist which preserve the operation of certain contracts in existence on 1 May 2020
for up to six months: the Act sch 5 cl 13.
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98 It appears to be accepted that SAS has been the strata manager for
the Scheme from 2001 until at least 1 May 2020 (or possibly up to six
months later, depending on the operation of the transitional
provisions).71 Since that time, SAS will only be (or have been)
authorised to perform functions as a strata manager for the Company if
a written strata management contract with the Company is (or was) in
force.
Executing documents on behalf of the Company: s 118 of the Act
99 A strata company is a body corporate that has perpetual
succession, is capable of suing and being sued in its own name and has,
subject to the Act, all the powers of a natural person that are capable of
being exercised by a body corporate.72 A strata company may have a
common seal, but it does not have to have one.73
100 Part 8 of the Act deals with strata companies in more detail. Part 8
division 1 is headed 'Functions'74 and has eight subdivisions.
Subdivision 8 is headed 'Limitations' and comprises s 117 (headed
'Limitations on exercise of powers') and s 118 (headed 'Common seal
and execution of documents').
101 Section 118 provides:
(1) If a strata company has a common seal –
(a) the seal may be used only as authorised by ordinary
resolution of the strata company; and
(b) its use must be attested by the signatures of 2 members
of the council of the strata company.
(2) A strata company may, by ordinary resolution, authorise any of
the following to execute documents on its behalf subject to any
conditions or limitations specified in the resolution –
(a) a member of the council of the strata company; or
(b) members of the council of the strata company acting
jointly; or
(c) a strata manager of the strata company.
71 BD 6 (order sought 4(a)).
72 The Act s 14(5).
73 The Act s 14(7).
74 Unlike section headings, the headings of the Parts, divisions and subdivisions into which a written law
such as the Act is divided form part of that written law: Interpretation Act 1984 (WA) s 32.
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(3) A document is duly executed by a strata company if –
(a) the common seal of the strata company is applied to it
in accordance with this section; or
(b) the document is signed on behalf of the strata company
by a person or persons in accordance with an authority
conferred under this section.
(4) For a document in an electronic form that bears a facsimile of
the common seal and a facsimile of the signatures required to
attest its use, the sealed document as it appears electronically, or
as it appears when printed on paper, has the same effect as if the
common seal had been applied and attested in accordance with
this section, unless there is evidence that the document was not
executed by the strata company.
102 It is common ground that the strata company does not have a
common seal.75
103 The only other basis under s 118 on which a person or persons
may execute documents on behalf of a strata company is if the strata
company has authorised that person or persons to do so by ordinary
resolution.
104 A document will be duly executed by a strata company if the strata
company's common seal has been applied to the document in
accordance with s 118 of the Act or the document has been signed on
the strata company's behalf in accordance with an authority conferred
under s 118.
The 2020 Resolution (and subsequent similar resolutions)
105 The Company relies on the 2020 Resolution (and subsequent
similar resolutions) as authorising the Council to enter into strata
management contracts.
106 As counsel for the Company properly accepted, the 2020
Resolution should be understood having regard to s 118 of the Act.76
On its terms, the 2020 Resolution authorises
the Strata Council … to enter and execute contracts, agreements,
undertakings or other legally binding arrangements from time to time,
which are necessary to achieve the Strata Company's General Duty.
75 Appellants' submissions (AS) [23]; ts 9.
76 ts 9.
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107 As I have noted, the Council of the Company consists of the
owner of Lot 1 (Ms Packer) and that co-owner of Lot 2 nominated by
the appellants or determined pursuant to sch 1 cl 4(6). Section 118(2)
only permits a person or persons to be authorised to execute documents
on behalf of a strata company if:
(a) the person is a member of the council of the strata company;
(b) the persons are members of the council of the strata company
acting jointly; or
(c) the person is a strata manager of the strata company.
108 The 2020 Resolution does not authorise the Company’s strata
manager to execute documents on the Company's behalf. Nor does the
2020 Resolution authorise any single member of the Council to execute
documents on the Company's behalf.77 If the 2020 Resolution
authorises anyone at all, it authorises the Council's members
acting jointly.
109 It follows that the 2020 Resolution did not authorise Ms Packer
acting alone to execute the 2020 Contract or any subsequent strata
management contract on the Company's behalf. Any materially similar
resolutions passed after the 2020 Resolution likewise will not have
authorised Ms Packer acting alone to execute a strata management
contract (or any other document).
Unit 1's greater unit entitlement did not make any relevant difference
110 That the lot owned by Ms Packer has a greater unit entitlement
than the appellants' lot says nothing of itself about whether Ms Packer
was authorised to execute a strata management contract with SAS on
behalf of the Company. Ms Packer's greater unit entitlement is relevant
to her authority to do so only to the extent that the Act makes
it relevant.
111 The only possible relevance of the greater unit entitlement to
Ms Packer's authority to execute a strata management contract on
behalf of the Company is in the context of voting on a proposed
resolution of the Company. It is only in that context that the Act
provides for voting by unit entitlement.78 In contrast unless the scheme
77 The reference to a member of a strata company's council in s 118(2)(a) could extend to an ordinary
resolution authorising more than one member of the council to execute documents acting alone:
Interpretation Act 1984 (WA) s 10(c). However, that is not what the 2020 Resolution purports to do.
78 See the Act pt 8 div 3 subdiv 1 and especially the Act s 122.
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by-laws otherwise provide, at Council meetings all matters must be
determined by a simple majority vote.79 The Scheme's by-laws do not
otherwise provide.
112 In her reasons, the learned Member observed that one of the
appellants (Ms Fan) voted in favour of the 2020 Resolution at the 2020
AGM but, when Mr Kiddle sent the appellants the 2020 Contract, they
did not sign it.80 The appellants were not required by the 2020
Resolution to sign the 2020 Contract.
113 The learned Member then referred to the absence of any minutes
of a Council meeting, but inferred that in the circumstances of this case
when the appellants refused to sign the 2020 Contract:81
[A] vote by the number of unit entitlements was undertaken.
As Ms Packer, the owner of Lot 1, has more than 50% of the sum of the
unit entitlements of the lots in the strata scheme, she signed the contract
thereby satisfying the requirements of s 123(7)(b)(ii) of the [Act].
114 The Tribunal went on to say of the 2022 Contract:82
By 2022 when the 2022 strata management contract was being
considered, Mr Zhao and Ms Fan as the owners Lot 2 were unfinancial
and therefore they were not eligible to cast a vote on an ordinary
resolution. Ms Packer as the owner of Lot 1, was the only owner
eligible to vote. It was not necessary to cast a vote as Ms Packer, as the
sole owner entitled to vote, signed the 2022 strata management contract.
Further, although it is not necessary to consider whether a vote by the
number of unit entitlements was undertaken, it is clear that Ms Packer
has more than 50% of the sum of the unit entitlements of the lots in the
strata scheme and therefore meets the requirements of s 123(7)(b)(ii) of
the [Act].
115 Section 123(7)(b)(ii) provides:
A resolution of a strata company is an ordinary resolution if –
…
(b) it is passed when counted as required under section 122 (1)(c) –
…
79 The Act sch 1 cl 8(1).
80 Reasons [52].
81 Reasons [54].
82 Reasons [56].
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(ii) by unit entitlements – by more than 50% of the sum of
the unit entitlements of the lots in the scheme for which
votes are cast.
116 As is apparent from the statutory text of s 123(7)(b)(ii), that
provision is concerned with voting on ordinary resolutions of a strata
company.
117 If a strata company is to pass a resolution (be it an ordinary
resolution or one of the other kinds of resolution contemplated by
s 123), it must do so in accordance with the requirements of the Act. In
the case of ordinary resolutions, those requirements include that:
(a) if the proposed resolution is to be put to the members of a strata
company at a general meeting:83
(i) all owners of lots in the strata titles scheme must be
given at least 14 days' notice of the meeting and the
notice must include the date, time and venue of the
meeting, notice of the general nature of the business to
be conducted at the meeting and notice of each method
of voting that is acceptable to the strata company;84 and
(ii) a quorum must be present at the time when the meeting
proceeds to business;85
(b) if the proposed resolution is to be put to the members of a strata
company outside of a general meeting:86
(i) 14 days' notice of the terms of the proposed resolution
must be given to each member of the strata company
before voting on the resolution opens;87 and
(ii) the notice must specify how the vote will be conducted,
how a vote may be submitted, the closing date for
submitting a vote, how the owner of a lot will know
83 The Act s 120(3)(a). There are two kinds of general meeting of a strata company, namely an annual general
meeting and an extraordinary general meeting: the Act s 127 and s 128.
84 The Act s 129.
85 The Act s 130 and s 131. For a 2-lot scheme such as the Scheme, there will be a quorum at a general
meeting 'if there are present persons who are entitled to cast the vote attached to each of the lots': s 130(2).
86 The Act s 120(3)(b).
87 The Act s 123(7)(a).
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their vote has been cast and how the results of the vote
will be published.88
118 The 2020 Resolution does not purport to modify or depart from
those requirements. The 2020 Resolution could not do so.
Any resolution passed by a strata company must be consistent with
the Act.
119 As counsel for the Company properly accepted, it was open to
Ms Packer to propose an ordinary resolution of the Company
authorising her to sign a strata management contract with SAS on
behalf of the Company and demand that the vote be counted by the
number of unit entitlements, but she did not do so.89 There is no other
basis on which Ms Packer's lot having a greater unit entitlement could
cause Ms Packer to be authorised acting alone to execute a strata
management contract on the Company's behalf.
Necessity
120 Reliance was also placed by the Company on it being 'necessary'
to execute the 2020 Contract.
121 It was plainly necessary for there to be a strata management
contract between the Company and SAS if SAS was to continue to be
authorised to perform functions as a strata manager for the Company.
That does not provide any basis for departing from the requirements of
the Act. Indeed, as I have noted the Act provided a mechanism through
which Ms Packer could have obtained the authority to execute the 2020
Contract acting alone on behalf of the Company and over the
opposition of the appellants. Ms Packer did not avail herself of that
mechanism.
122 Further, the 2020 Resolution does not require the Council's
members acting jointly to execute any particular document. It only
authorises them to execute legally binding documents of the kind
described in the 2020 Resolution. The appellants' decision not to sign
the 2020 Contract - a decision they were entitled to make - did not
create any necessity and did not give rise to Ms Packer having authority
to execute the 2020 Contract acting alone on behalf of the Company
which she did not otherwise have.
88 The Act s 120(8)(b) and the Strata Titles (General) Regulations 2019 (WA) r 89.
89 ts 12 - 14.
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The answer to Question 1
123 For these reasons, Ms Packer was not authorised:
(a) under s 118 by the 2020 Resolution (or any similarly-worded
resolution); or
(b) solely by virtue of owning the lot with a majority of the
Scheme's unit entitlements,
to execute strata management contracts between the Company and SAS
from 2020.
Question 2: was Ms Packer authorised under s 118 to enter into a cost
agreement between the Company and GV Lawyers?
The Tribunal's reasons
124 The cost agreement between the Company and GV Lawyers was
only signed by Ms Packer.90 However, the Tribunal concluded that
GV Lawyers were validly appointed:91
For similar reasons to the appointment of the strata manager, the
engagement of legal representation requires an ordinary resolution of
the strata company. As previously stated, and repeated here, apart from
limited exceptions as set out in s 120(2) of the [Act], Mr Zhao and
Ms Fan are only eligible to vote on ordinary resolutions when they are
not 'unfinancial'. As Mr Zhao and Ms Fan concede they have not paid
strata levies since about July 2020 they are 'unfinancial' and therefore
cannot cast a vote on any ordinary resolution (apart from the limited
exceptions set out in s 120(2) of the [Act]). Consequently, I am satisfied
that GV Lawyers were validly appointed where only Ms Packer signed
the cost agreement [on 4 October 2023]. Consequently, the order sought
by Mr Zhao and Ms Fan requiring the reimbursement to the strata
company of all legal expenses paid is without merit.
The appellants' submissions
125 The appellants made materially identical submissions in respect of
Ms Packer's authority to execute an agreement with GV Lawyers on
behalf of the Company to the submissions they made in respect of
Ms Packer's authority to execute a strata management agreement with
SAS on behalf of the Company.
90 Reasons [85].
91 Reasons [87].
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The Company's submissions
126 The Company adopted the reasoning of the Tribunal.
Consideration
127 For the reasons I gave in respect of Question 1, neither the 2020
Resolution nor any similarly-worded resolution authorised Ms Packer
acting alone to execute any document, including a cost agreement with
GV Lawyers, on behalf of the Company. Further, that Ms Packer
owned the lot with the majority of the Scheme's total unit entitlements
did not of itself provide her with authority to execute a cost agreement
with GV Lawyers on behalf of the Company.
The answer to Question 2
128 It follows that Ms Packer was not authorised:
(a) under s 118 by the 2020 Resolution (or any similarly-worded
resolution); or
(b) solely by virtue of owning the lot with a majority of the
Scheme's unit entitlements,
to execute a cost agreement with GV Lawyers on behalf of the
Company.
Question 3: if the appellants were 'unfinancial', did that materially affect
their rights as a council member or in relation to the execution of strata
management contracts?
The Tribunal's reasons and the parties' submissions
129 I have already referred to the Tribunal's reasons and the parties'
submissions as to the effect of being 'unfinancial'.
Consideration
130 If the appellants were 'unfinancial', that would only be relevant if
an ordinary resolution was proposed and put to a vote (because the
owner of a lot with an outstanding amount recoverable under the Act
owed to the strata company is not entitled to cast the vote attached to
the lot on an ordinary resolution).92 Being 'unfinancial' did not affect
the ability of either appellant to serve as a Council member or to be
authorised to execute documents on behalf of the Company.
92 The Act s 120(2).
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131 Ms Packer did not propose an ordinary resolution which would
have authorised her to sign a strata management contract with SAS on
behalf of the Company. In those circumstances, if the appellants were
'unfinancial', that was irrelevant to whether Ms Packer had authority
acting alone to execute a strata management contract with SAS on
behalf of the Company.
The answer to Question 3
132 If the appellants were 'unfinancial', in the sense that, to use the
words of s 120(2)(b) there was 'an outstanding amount recoverable
under [the Act] owed to the strata company by the owner of the lot',
that did not materially affect their position in respect of being a Council
member or the execution of documents such as a strata management
contact or cost agreement.
Question 4: was there an outstanding amount recoverable under the Act
owed to the Company by the appellants as owners of Lot 2, such that they
could not cast the vote attached to Lot 2 on an ordinary resolution?
The Tribunal's reasons
133 As I have noted, the Tribunal correctly held (and the Company
properly conceded before the Tribunal) that a strata company cannot
establish an administrative fund unless required to do so by the strata
scheme's by-laws. As the Scheme's by-laws did not so require, the
Company could not establish an administrative fund.
134 As I have also noted, the Tribunal found that the appellants were
'unfinancial' because the appellants accept that they have not paid any
strata levies to the Company since about July 2020. It is not in dispute
that the appellants have not paid any strata levies to the Company since
that time.
The appellants' submissions
135 So far as this question of law is concerned, the appellants rely on
the Tribunal's holding and the Company's concession93 to contend that
the Company was not empowered to impose strata levies before the
Tribunal made its orders and they were not 'unfinancial'.
93 AS [43], [60] - [61].
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The Company's submissions
136 The Company submits that the Company (with the appellants'
support) resolved at general meetings to establish an administrative
fund for the Company, or at least an annual budget with strata levies.
Those resolutions should be respected and given effect, even though the
Scheme by-laws had not been changed.94
Consideration
137 Section 120(1) and s 120(2) provide:
(1) The owner of each lot in a strata titles scheme is entitled to 1
vote on a proposed resolution of the strata company.
(2) However, the owner of a lot is not entitled to cast the vote
attached to the lot if -
(a) the resolution is not required to be a unanimous
resolution or a resolution without dissent and is not a
resolution for postponing the expiry day for a leasehold
scheme or a termination resolution; and
(b) there is an outstanding amount recoverable under this
Act owed to the strata company by the owner of the lot.
138 The resolutions relevant to this appeal were ordinary resolutions
and as such were not unanimous resolutions or resolutions without
dissent.95 As is apparent from what I have already said, none of the
resolutions relevant to this appeal was of a kind otherwise described in
s 120(2)(a).
139 The strata levies imposed by the Company at its AGMs were
imposed by adopting an annual administration budget and setting an
'administration levy' or 'administrative fund levy' calculated by
reference to unit entitlement, due and payable quarterly.96
140 Section 100(1) provides:
A strata company must –
(a) establish a fund (an administrative fund) for administrative
expenses that is sufficient in the opinion of the strata company
for the control and management of the common property, for the
94 RS [29]; ts 24 - 26.
95 The Act s 123.
96 ts 28 - 29; BD 620 - 621, 623, 627, 630 - 631, 636, 641, 648, 656.
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payment of any premiums of insurance and the discharge of any
other obligation of the strata company; and
(b) determine the amounts to be raised for payment into the
administrative fund; and
(c) raise amounts so determined by levying contributions on owners
of lots -
(i) in proportion to the unit entitlements of their respective
lots; or
(ii) if the scheme by-laws provide for a different basis for
levying contributions, in accordance with that basis;
and
(d) recover from the owner of a lot, by action in a court of
competent jurisdiction if necessary, any sum of money expended
by the company for repairs or work done by it or at its direction
in complying with a notice issued, or order made, under a
written law in respect of the lot.
141 Section 100(4) to s 100(6) provides:
(4) Any contribution levied under this section –
(a) becomes due and payable to the strata company in
accordance with the terms of the decision to make the
levy; and
(b) if not paid when it becomes due and payable, bears
interest on the amount unpaid at the rate of simple
interest specified in the regulations, unless the company
determines (either generally or in a particular case) that
an unpaid contribution bears no interest or interest at a
lesser rate; and
(c) including interest accrued under paragraph (b), may be
recovered as a debt by the strata company in a court of
competent jurisdiction and the strata company may
agree to a compromise of such a debt.
(5) Interest paid or recovered under subsection (4) or (6) forms part
of the fund to which the contribution belongs.
(6) The owner of a lot is liable in respect of any contribution levied
under this section and any interest on the contribution, jointly
and severally with any person who was liable to pay that
contribution and interest when that owner became the owner of
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that lot, to pay so much of that contribution and interest as was
unpaid when the owner became the owner of that lot.
142 The Company could not establish an administrative fund under
s 100(1)(a) throughout the period during which the Company resolved
to impose an administration levy or an administrative fund levy.
This was because, as the Tribunal correctly accepted, the Scheme
by-laws did not require the Company to establish an administrative
fund.
143 The provisions in s 100(1)(c) for levying contributions from
owners and in s 100(4) for the recovery of those contributions are only
engaged in the context of an administrative fund or a reserve fund.
The Company did not have an administrative fund so those provisions
were not engaged on that basis.
144 Section 100(2)(a) permits a strata company to:
[E]stablish a fund (a reserve fund) for the purpose of accumulating
funds to meet contingent expenses, other than those of a routine nature,
and other major expenses of the strata company likely to arise in the
future.
145 Contributions can be levied on owners and recovered for that
purpose (s 100(2)(c) and s 100(4)).
146 However, the expenses contemplated by the Company's budgets
(which the Company was required to have under s 102) appear to be 'of
a routine nature'. In addition, counsel for the Company said that his
understanding was that the Company has never had a reserve fund.97
147 It follows that the Company could neither levy contributions from
the owners nor recover those contributions under s 100(1)(c)
or s 100(4).
148 No other basis98 appears to have been relied on to support the
existence, to paraphrase s 120(2)(b), of an outstanding amount
recoverable under the Act owed to the Company by the appellants as
the owners of Lot 2.
149 It is unnecessary for me to consider whether the appellants may be
liable to Ms Packer or the Company on any other basis.99 Question 4 is
97 ts 27.
98 Such as under the Act sch 2A cl 53E in relation to insurance premiums.
99 See the Act s 211.
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concerned with whether the appellants were 'unfinancial' for the
purpose of determining whether they were eligible to cast the vote
attached to Lot 2 on an ordinary resolution.
The answer to Question 4
150 As there was no outstanding amount recoverable under the Act
which the appellants owed to the Company, the appellants were eligible
to cast the vote attached to Lot 2 on ordinary resolutions at all relevant
times. They were not 'unfinancial'.
Question 5 - could the Tribunal in resolving a scheme dispute under pt 13
make orders authorising the Company to establish an administrative
fund without an application having been made under s 140(3)?
The Tribunal's reasons
151 The Tribunal acknowledged that no application had been made to
the Tribunal under s 140(3) of the Act and that what the Tribunal had
before it was the appellants' application to resolve a scheme dispute
under s 197(4) of the Act. However, the Tribunal considered that it was
'entirely appropriate for the [Company] to have set up the
administrative fund for this two-lot strata scheme and for its continued
operation'.100
152 The Tribunal gave a number of reasons for that view, but those
reasons do not address the question of whether the Tribunal can make
orders authorising an administrative fund without an application under
s 140(3) of the Act. Instead, it appears with respect that such a power
was assumed in making the orders.
Appellants' submissions
153 The appellants submit that under s 140(3), there needs to be an
application by a member of the strata scheme. If there is an application,
the Tribunal has a discretion whether or not to grant the application.
154 In the absence of a s 140(3) application, the Tribunal cannot make
orders in resolving a scheme dispute on an application under s 197(4)
of the Act that would require a strata company to establish an
administrative fund. Otherwise, s 140(3) would be rendered
superfluous.
100 Reasons [66].
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155 Further, having regard to the decision of the Tribunal in Rechichi
and Johnston101 (Rechichi), the dispute between the parties is
relevantly whether the Company has the power to establish an
administrative fund under the Act. There is a specific provision - s 140
- governing this subject matter which is intended to deal
comprehensively with 'small lot' schemes and the limits imposed by
s 140(1)(b) and s 140(3) cannot be by-passed by s 197. To do otherwise
would be inconsistent with the purpose of s 140(1)(b) and s 140(3).
The Company's submissions
156 The Company adopted the Tribunal's reasoning.
157 The Company also submitted that the principles in Rechichi are
relevant but can be distinguished because the appellants did not
properly invoke s 140(3).
158 Alternatively, the Company submitted that Rechichi is irrelevant
because this appeal is concerned with the interpretation of s 100 and
s 120 and the validity of voting rights. The appeal does not concern the
interaction between specific statutory provisions and pt 13 at all and the
appellants have sought no substantive relief concerning an
administrative fund.
Consideration
159 Section 140 of the Act provides:
(1) A strata company for a 2-lot scheme –
(a) may, but is not required to, perform a designated
function; and
(b) cannot establish an administrative fund unless required
to do so by scheme by-laws.
(2) The scheme by-laws for a 3, 4 or 5-lot scheme may exempt the
strata company from a designated function.
(3) However, the Tribunal may, on application by a member of the
strata company, require a strata company to perform a
designated function despite this section.
101 Rechichi and Johnston [2021] WASAT 79 (Member McGivern).
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(4) In this section –
designated function means a function conferred under any of
the following sections or included in this definition by the
regulations —
Section Description for information only
Section 100(1)(a) Administrative fund
Section 101 Accounting records and statement of
account
Section 104(1)(b) Minutes of meetings
Section 104(3)(a) Letterbox
Section 105(1) Roll to be kept by strata company.
160 Section 197(4) of the Act provides:
An application for resolution of a scheme dispute can be made to the
Tribunal by a party to the dispute.
161 I have already referred above at [10] to the relevant definition of a
'scheme dispute' in s 197 of the Act. In my opinion, a dispute about the
imposition of an administrative levy can constitute a 'scheme dispute',
as it can involve a dispute between scheme participants about:
(a) the scheme documents, including the validity of scheme
by-laws;
(b) a resolution or decision of a strata company or the council of a
strata company, including its validity; or
(c) any other matter arising under this Act or the scheme by-laws.
162 Further, the administrative levies imposed by the Company
formed part of the scheme dispute as defined by the appellants'
application under s 197(4) of the Act. See in this regard the orders
sought in that application and issue 2 of the appellants' statement of
issues, facts and contentions before the Tribunal, set out above at [12]
and [15].
163 The question remains whether s 140 operates to exclude its subject
matter from the scope of pt 13. I do not accept the Company's
submission that this appeal does not concern the interaction between
specific statutory provisions and pt 13. The interaction between s 140
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and pt 13 has been raised by the appellants among the questions on
which they sought to rely in their appeal.
164 In Rechichi, the Tribunal considered how specific provisions of
the Act interact with the Tribunal's jurisdiction to resolve scheme
disputes under pt 13 of the Act. Member McGivern said:102
21 The amendments to the [Act] which commenced on 1 May 2020
included, as one of the major reforms, the introduction of Pt 13
(headed 'Tribunal proceedings'), under which:
a) the Tribunal has, under s 197, a very broad power to
resolve 'scheme disputes'; and
b) in 'a proceeding under [the] Act', the Tribunal may:
i) under s 199, make a declaration concerning a
matter in the proceeding instead of, or in
addition to, any order the Tribunal may make;
and
ii) under s 200, make any order it considers
appropriate to resolve the dispute or
proceeding.
22 The latter provisions are, in essence, remedial. Although the
power to make orders or declaration is very broad, the merits of
the substantive matters in the dispute are the underlying basis
for doing so, and must be considered and determined before the
appropriate relief can be decided upon.
23 In terms of dealing with the substantive merits, as noted above,
the Tribunal has jurisdiction under s 197 is to resolve 'scheme
disputes'. Relevantly in that regard:
a) pursuant to s 3(1), the term 'scheme dispute' takes its
meaning from s 197 itself which, by reference to both
subject matter and parties, relevantly describes various
classes of dispute as being within and outside its scope;
b) the classes of dispute specified as being scheme
disputes under s 197(1) relevantly include [those
quoted above at [10]];
102 Rechichi [21] - [27] (footnotes omitted). See also Andrews and The Owners of Coralie Gardens Strata
Plan 44374 [2022] WASAT 2 [37] - [43] (Member McGivern); Redset Nominees Pty Ltd and Owners of
Spinnakers Apartments Strata Plan 53824 [2021] WASAT 96 [28] - [43] (Member McGivern).
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c) 'scheme participants' is defined in s 197(2) to include
each of:
i) the strata company for a strata titles scheme;
ii) a member of the strata titles scheme (in turn
defined [by s 3(1) read with s 14(8)] to mean
owners for the time being of lots in the
scheme); and
d) pursuant to s 12, 'scheme documents' relevantly include
a scheme plan.
24 Properly construed, the Tribunal's jurisdiction to resolve scheme
disputes under s 197 is so broad as to include and incorporate (at
least in disputes between scheme participants) the jurisdiction
conferred under other more specific provisions (relevantly, s 90
and s 35) of the [Act]. That view is supported by the following:
a) Pursuant to s 209, a proceeding before the Tribunal
under the [Act] comes within the Tribunal's original
jurisdiction, unless otherwise provided.
b) Matters in the Tribunal's review jurisdiction are
identified in s 27 and s 28, and each of those provisions
include the following terms:
Part 13 does not apply to a proceeding under this
section (which is a proceeding within the Tribunal's
review jurisdiction).
c) The express exclusion of the application of Pt 13 to
matters within the Tribunal's review jurisdiction
suggests that Pt 13 is otherwise intended to apply.
d) Reading the Act as a whole, the provisions of Pt 13 are
to be understood as being of general application
(subject to their own terms) to matters within the
Tribunal's original jurisdiction.
e) The express terms of s 197(1)(a) make it clear that,
unless excluded by the terms of s 197(3), any dispute
between scheme participants 'arising under the Act'
falls within the Tribunal's jurisdiction to resolve
scheme disputes.
i) It is clear on the face of that provision that
disputes arising under other parts of the [Act]
are caught (the provision could, but does not,
refer to disputes, for example, 'under this
Part').
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ii) Similarly, although s 197(3) excludes a range
of matters from being a 'scheme dispute' there
is no general 'carve out' provision which would
exclude an application brought under any other
more specific provision (which might operate
in a similar manner to s 83(6) of the Prior
[Act]103). Rather, particular classes of matter
are identified, as 'not [being] scheme disputes'
including by reference to disputes under other
Parts of the [Act] (again, the implication being
that it is necessary to exclude those Parts,
which would otherwise be scheme disputes).
25 Nevertheless, it also follows from reading the [Act] as a whole
that the broad jurisdiction of the Tribunal to deal with a dispute
under s 197, and its discretionary power to make orders under s
200, is subject to any specific limit imposed by the [Act] in
connection with the subject matter.
26 Accordingly:
a) where a dispute is properly characterised as being a
dispute about subject matter falling under a specific
provision or provisions of the [Act] (in this case, s 90),
then the jurisdiction of the Tribunal to deal with that
dispute is limited by the terms of that provision / those
provisions; and
b) where the subject matter of the dispute in question
and/or the relief sought falls outside the scope of any
specific provisions, then the Tribunal must decide:
i) whether the Act, properly construed, evinces
an intention to 'cover the field' of the subject
matter within the constraints of the specific
provisions; or
ii) whether it has 'residual' power to deal with it
under its broad jurisdiction in Pt 13.
27 In this case, therefore, the analysis of the Tribunal's jurisdiction
must begin with s 90, pursuant to which the application is
brought. If the subject matter of the dispute between the parties,
and specifically the power to make either or both of the
Proposed Orders, falls within the parameters of that section then
the Tribunal will have jurisdiction to determine the matter. If the
subject matters of dispute falls outside the scope of s 90, then
103 Which provided, in relation to the general powers of the Tribunal to make orders under s 86(1) that:
'Nothing in this Part affects the generality of subsection (1), but an order in respect of any matter referred to
in any other section of this Part shall not be made under this section.'
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the question will be whether it may nevertheless be dealt with
under Pt 13 (or other specific provision/s in the [Act]).
165 I respectfully agree with the learned Member's analysis of the
interaction between specific provisions of the Act and pt 13. While
Rechichi was concerned with the interaction between s 90 and pt 13,
the learned Member's analysis is relevant to considering the interaction
between s 140 and pt 13.
166 In general terms the subject matter of s 140 is to make special
rules for strata titles schemes comprising 2, 3, 4 or 5 lots. Those special
rules allow for the scheme by-laws for a 3, 4 or 5-lot scheme to exempt
the scheme's strata company from a designated function which the Act
would otherwise require it to perform. They also relieve the strata
company for a 2-lot scheme from having to perform designated
functions which the Act would otherwise require it to perform, although
(with one exception) the strata company can choose to perform a
designated function. The exception is that for a 2-lot scheme, the strata
company cannot establish an administrative fund unless required to do
so by scheme by-laws. As I have noted, that exception is relevant to this
appeal.
167 All of this is subject to s 140(3). Under that provision, a member
of the strata company of a 2, 3, 4 or 5-lot scheme can apply to the
Tribunal to require the strata company to perform a designated function
despite s 140 (and, it would appear, any scheme by-laws which are
relevant to the operation of s 140).
168 As scheme by-laws can be made to engage s 140 (as contemplated
by s 140(2)) or overcome the prohibition on establishing an
administrative fund (as contemplated by s 140(1)(b)), an application to
the Tribunal under s 140(3) at least suggests the existence of a dispute
about whether the strata company should perform the relevant
designated function. The question is whether s 140(3) is intended to
cover the field in relation to those disputes or leaves room for the
operation of pt 13.
169 Unlike an application for the resolution of a scheme dispute under
pt 13, which can be made by any scheme participant including the strata
company, only a member of the strata company can make an
application under s 140(3). That is a significant constraint on the
Tribunal's jurisdiction under s 140(3) as compared with its jurisdiction
under pt 13.
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170 Further, under s 200(4) the Tribunal can make orders with
retroactive effect to resolve a scheme dispute. Section 140(3) does not
expressly confer power on the Tribunal to require that a strata company
perform a designated function with retroactive effect and such a power
is not lightly to be implied. In my opinion, it should not be implied in
relation to s 140(3). To do so may alter the rights and liabilities of the
strata company and its members with retroactive effect. That the power
under s 140(3) can only be exercised prospectively is another
significant constraint on the Tribunal's jurisdiction under s 140(3) as
compared with its jurisdiction under pt 13.
171 In light of those significant constraints on the Tribunal's
jurisdiction, in my opinion s 140 covers the field in relation to disputes
about whether the strata company should perform a designated function
as defined by s 140(4).
The answer to Question 5
172 For those reasons, in resolving a scheme dispute under pt 13 the
Tribunal could not make orders authorising the Company to establish
an administrative fund. The Tribunal could only prospectively require
the Company to perform the designated function of establishing an
administrative fund under s 100(1)(a) in the context of an application
made to the Tribunal by a member of the Scheme under s 140(3).
Substantial injustice
173 The Company submits that even if the Tribunal erred, the
appellants have suffered no injustice as they have had the benefit of the
services of SAS as strata manager, they voted in favour of resolutions
relating to strata levies and they have charged their commercial tenants
in respect of strata levies.104
174 Those are matters which go to whether the Tribunal should make
declarations under s 199 or orders under s 200. If such orders are to be
made, they should be made on a sound legal basis. As the Tribunal held
in Rechichi,105 '[a]lthough the power to make orders or declaration is
very broad, the merits of the substantive matters in the dispute are the
underlying basis for doing so, and must be considered and determined
before the appropriate relief can be decided upon.'
104 See for example ts 21 - 22, 31.
105 Rechichi [22] (Member McGivern).
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175 The Tribunal's declarations and orders depended on the findings
made by the Tribunal.106 I have concluded that the Tribunal erred in
making several of those findings, as set out above.
Disposition
176 The appellants should be granted an extension of time in which to
appeal, they should have leave to appeal on the five questions identified
above at [76], the appeal should be allowed and the declarations and
orders made by the Tribunal should be set aside.
177 It would not be appropriate for this court on appeal to make any
declarations or orders in their place, as the appellants have invited the
court to do. Whether any declarations or orders are made on the
appellants' application to the Tribunal under s 197(4) will depend on a
range of matters that are not before this court.
178 Instead the matter should be sent back to the Tribunal, differently
constituted, for reconsideration consistent with these reasons and with
the opportunity for the hearing of further evidence as the Tribunal
considers appropriate.
179 I will hear the parties on the orders that should be made to give
effect to these reasons, including as to the costs order made against the
appellants by the Tribunal and the costs of this appeal.
106 Reasons [89], [93] - [94], [97], [100], [102], [105].
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I certify that the preceding paragraph(s) comprise the reasons for decision of
the Supreme Court of Western Australia.
JS
Associate to the Hon Justice Bydder
17 AUGUST 2026
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