7 September 2023
September 2023 – Strata Regulatory Watch
In this edition we cover: NSW: Final version of the Fire Safety Schedule NSW : Update on strata management legislation Press release : Welcome to Gerard Doyle, our new NSW…
In this article, Nicole Wilde our Special Counsel on the Gold Coast considers the implications of a recent QCAT decision for bodies corporates & the scrutiny their Remedial Action Notices issued to their Caretakers may be subject to.
The QCAT decision in Zhou Lim Pty Ltd v Body Corporate for Miami Pacific  QCAT 261 (8 July 2020) highlights the level of scrutiny that a body corporate’s remedial action notice may be subjected to if a caretaker decides to challenge a body corporate decision to terminate based the caretaker’s failure to comply with the remedial action notice.
Briefly, the key facts of the matter were:
Ultimately, after going through each of the 41 breaches set out in the remedial action notice, which had been prepared by the body corporate’s solicitors, the body corporate was able to satisfy QCAT that 20 were valid remedial action notice breaches which the caretaker had not remedied within the timeframe set out in the remedial action notice. QCAT found that 5 alleged breaches had been remedied by the caretaker and that 14 alleged breaches had not been established by the body corporate.
QCAT confirmed that the body corporate’s decision to terminate the caretaker’s contract was valid and the caretaker therefore lost any benefit or business it had under the caretaking agreement.
This case shows why it is important to verify that each any every allegation made in a remedial action notice is properly linked back to the caretaker’s contractual duties and can be substantiated before passing a resolution to terminate the caretaker’s contract.
If you would like advice or assistance in preparing a remedial action notice or assessing the validity of a remedial action notice, please do not hesitate to contact our specialist strata lawyers.