Written by In Owners – Strata Plan No 2661 v Selkirk (2024), the New South Wales Court of Appeal addressed the repair responsibilities of owners corporations under the Strata Schemes Management Act 2015 (SSMA). Simone Selkirk, a lot owner in a Darling Point strata scheme, claimed the owners corporation failed to repair common property following a water leak, causing her tenant to vacate, resulting in loss of rent. She asserted that the repair damages were inadequate. The initial tribunal favoured with Selkirk, but the Appeal Panel overturned this, ruling the owners corporation was not absolved of its duty under SSMA section 106.
Leeming J, in considering the appeal, clarified that a lot owner’s conduct—such as impeding repair efforts—could affect their entitlement to damages. The case highlighted that while the owners corporation has a strict duty to repair, damages under section 106(5) are limited if the loss is caused by the owner’s unreasonable actions. Leeming emphasized that causation must be assessed practically, considering whether the damage resulted directly from the breach or from the owner’s own conduct. The case was remitted to the Appeal Panel to further examine the extent of the loss of rent claim. This case underscores the interplay between strict owners corporation repair duties and the responsibility of lot owners to act reasonably in facilitating repairs, with potential implications for the assessment of damages in strata disputes.