Case Notes ~ How Short is “a Short-Term”

How short is “a short-term”? ECs engaging contractors on a short-term basis.

FAN v OWNERS CORPORATION UP 4787 (Unit Titles) [2021] ACAT 15

In this case the Applicant asked the Tribunal to set aside various decisions of the Executive Committee in Executive Committee Meetings and of the Owners Corporation in General Meeting, including the engagement of Wilson’s Parking and resolutions to instal CCTV and raise special levies. On the facts of the case, the Tribunal dismissed the application in its entirety.

The Tribunal considered the meaning of section 45 of the Unit Titles (Management) Act 2011 that permits an Executive Committee to “engage or employ people on the terms it considers appropriate to help in the exercise of the corporation’s functions” including service contractors. It was noted the power is limited to an engagement on a “short-term-basis” or for “functions other than those for which a ...service contractor would usually be engaged to undertake”.

The Tribunal found that the engagement of Wilsons Parking for the period of one year was a valid exercise of the Executive Committee’s powers pursuant to section 45, stating

“in the Tribunal’s view, a short-term agreement for parking services for a new complex can be up to one year, given the necessary infrastructure involved such as signage”.