A recent decision of the High Court has given a strong indication of potential personal liability for Body Corporate Committee members when acting in respect to their obligations to the Body Corporate under the Unit Titles Act.
This would mean that the Committee members could not hide behind the Body Corporate in respect to such liability.
The Court has made it clear that Committee members themselves have personal obligations to act in accordance with the relevant statutory powers and rules. Breaches by any Committee member of those rules may result in personal liability.
Essentially, the Body Corporate would have a right of action against the Committee member for ultra vires acts which result in liability to the Body Corporate and secondly individual members of the Body Corporate themselves may look to bring actions against individual Committee members.
While this was not a final decision of the Court the observations are very important and should be a warning to Committee members. Committee members must act in accordance with the Body Corporate rules and can expect potentially to have personal liability for any wrongful acts or omissions.
This is also an important reminder to Body Corporate Committee members to ensure that they have adequate officer’s liability cover for personal liability and this should be put in place by the Body Corporate.
We have extensive experience in all aspects of Unit Title matters and advising Body Corporate and can assist you in relation to this or any other Unit Title issue.
If you require any advice or further information on the matters dealt with in this publication please contact the lawyer at Farry and Co. who normally advises you, or alternatively contact:
Paul Farry
09 379 0055 or 03 477 8870
The information contained in this publication is intended as a guide only. It does not constitute legal advice and should not be relied upon as such. Professional advice should be sought before applying any of the information to particular circumstances. While every reasonable care has been taken in the preparation of this publication, Farry and Co. does not accept liability for any errors it may contain.