6 SEPTEMBER 2011
In the aftermath of the decision in the landmark case of Fischer v Centrepoint in 2004, the contribution schedule lot entitlements (CSLE) for many schemes were amended either by order of the Court, Tribunal or an adjudicator or in many cases by consent orders or agreement amongst lot owners, to avoid protracted and costly litigation.
Since the amendments to the Body Corporate and Community Management Act came into effect on 14 April 2011, there has been an influx of motions from lot owners to Bodies Corporate, seeking to have formerly amended CSLE reverted to their pre-amended status.
Pursuant to the amendments, an owner of a lot may submit a motion proposing the adjustment of the CSLE to reflect the pre-adjusted position where there has been a Court or Tribunal “adjustment order”. Where the CSLE were previously changed by either resolution of the Body Corporate members or by consent or agreement of the parties, even where a Court or a Tribunal has given effect to that agreement by making an order, the necessary “adjustment order” does not exist.
Despite all the publicity about the new BCCM amendments, very few schemes which had previously changed their CSLE qualify to be reversed. Bodies Corporate who change their CSLE when not validly able to do so risk litigation.
You are a valued Kinneally Miley contact, for more information related to this Legal Update please contact us.
[contactsbox] [leftcolumn]Contact Partner: Tracey Miley
Direct Telephone : 07 3210 5780
Mobile Telephone : 0438 776 161
tracey.miley@kinneallymiley.com.au
Contact Partner: Francesca Petroccitto
Direct Telephone : 07 3210 5771
Mobile Telephone : 0402 293 644
francesca.petroccitto@kinneallymiley.com.au