On 2 August 2017, the ACT Civil and Administrative Tribunal (ACAT) handed down its decision In the Matter of Ruling Tribunal, section 31 of the Unit Titles (Management) Act 2011 (Civil Dispute) [2017] ACAT 56.
This is a long awaited decision which indicates what expenses an owners corporations can recover after suing a lot owner who fails to pay levies. It answers the issues raised by the decision in The Owners – Units Plan No 840 v Richardson [2015] ACAT 77.
In the Ruling Tribunal decision, ACAT held that if it was reasonable for an owners corporation to incur the following expenses (legal professional costs and disbursements incurred in bringing the Tribunal proceedings (e.g. lawyers fees, lawyers photocopying); company title and similar searches incurred in bringing the Tribunal proceedings; filing and hearing fees incurred in bringing the Tribunal proceedings; and administrative costs or disbursements incurred in bringing the Tribunal proceedings (e.g. charges by owners corporation managing agent, collections agency)), and each component of those expenses were reasonable in quantum then an owners corporation could recover those expenses under section 31 of the Unit Titles (Management) Act 2011 (UTMA). Further, the Ruling Tribunal held that legal professional costs and disbursements and administrative costs and disbursements in bringing enforcement proceedings in the ACT Magistrates Court were also costs that could be recovered by an owners corporation in later proceedings under section 31 of the UTMA.
This Ruling Tribunal decision also held that an owners corporation could only recover the following expenses (company title and similar searches incurred in bringing the Tribunal proceedings; filing and hearing fees incurred in bringing the Tribunal proceedings) under section 48 of the ACT Civil and Administrative Tribunal Act 2008 (ACAT Act). That is, the following expenses (legal professional costs and disbursements incurred in bringing the Tribunal proceedings (e.g. lawyers fees, lawyers photocopying); administrative costs or disbursements incurred in bringing the Tribunal proceedings (e.g. charges by owners corporation managing agent, collections agency)) are not recoverable under section 48 of the ACAT Act.
The full decision can be read here.
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