Shum v Owners Corporation SP30621 [2017] NSWCATCD 68 (30 August 2017)

Tribunal Awards Lot Owner Damages for Breach of Owners Corporation’s Duty to Maintain and Repair Common Property under Section 106 of the Strata Schemes Management Act 2015.

The Applicant, the owner of a lot in a strata scheme, sought substantive orders pursuant to sections 106, 126 and 232 of the Strata Schemes Management Act 2015 (“SSMA”) that:

1. The Respondent had failed to rectify defects in the common property roof in a timely manner in accordance with its statutory duty under the SSMA.

2. The alleged delay constituted a statutory breach causing damage to the interior of the lot as a result of water penetration causing mould and bubbling paint.

3. The alleged damage to the interior of the lot had caused the Applicant to suffer loss and damage in the form of lost rental income due to the Applicant’s lessee terminating the commercial lease over the lot.

4. The Applicant claimed that the following loss flowed from the Respondent’s alleged statutory breach, described above:

(a) Lost rent in the sum of $46,893.85 (the rental);

(b) A percentage of water and council rates, as well as levies, in the sum of $6,553.79, ordinarily paid by the Lessee under the terms of the commercial lease (the contributions); and

(c) Interest on the rental and contributions in the sum of $2,495.60.

The total of the Applicant’s claim was in the sum of $55,943.24.

The Tribunal ordered that the Respondent to pay the Applicant the sum of $55,943.24 within 7 days of the date of the orders in respect of the loss of rent, contributions and interest claimed.

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