Body corporate management controlling the high-rise Links apartments at Paraparaumu Beach was described by a High Court judge as being obstructive, using legal tactics to stall efforts by one apartment holder to get compensation for rental losses whilst the building was reclad.
In November 2018, court approval was given to a Unit Titles Act scheme of arrangement allocating between apartment owners costs of recladding the fourteen-story block. Left undecided was a demand by one apartment owner for compensation covering loss of income for the period her apartment was no longer available for rent. Body corporate management told the court it would discuss this issue with her. Discussions were unsuccessful.
The apartment owner went back to court, asking the approved scheme of arrangement be varied to order payment of compensation. She faced what Justice Cooke described as a course of deliberate obstruction: the body corporate did not respond to her court application until days before a scheduled court hearing and then tried to get the case thrown out on the basis she should have started from step one, filing paper work for a brand new scheme of arrangement to be voted on by all apartment owners. With this legal manoeuvre tossed out, the judge set a new timetable for the body corporate’s legal response to be filed. The body corporate again failed to respond, waiting until two days before this filing deadline expired to announce it planned to appeal. Justice Cooke refused leave to appeal and also refused body corporate requests to further hold up proceedings by seeking an eight week extension of time to file its evidence. The Links body corporate was ordered to file within twenty working days its grounds for refusing compensation and told there would be no more extensions.
Roe-Shaw v. Body Corporate 81340 – High Court (13.08.21)
21.136