Piper Alderman has filed its class action against Stanwell Corporation Ltd and CS Energy Ltd. (The Qld Energy Class Action has been filed)
The claim relates to alleged conduct which resulted in artificially inflated electricity bills between 2014-2019.
There has been some discussion in Qld strata circles whether Committee approval is sufficient to join the class action or whether a special resolution at a general meeting is required.
Subject to certain exceptions, Committees cannot "start a proceeding". A special resolution at a general meeting is required. Owners at a general meeting can generally ratify past actions of the Committee. For example, see:
Body Corporate for Quay Terraces Cts v Brisbane City Council [2016] QPEC 12 (8 March 2016)
Bahlaka Lodge [2020] QBCCMCmr 505 (30 September 2020)
The view of several strata managers is that Committee approval is sufficient.
There is little clear guidance. As at December 2020, the Qld Office of the Commissioner for Body Corporate and Community Management had not issued any guidance on a body corporate joining class actions. Nor does the legislation specifically deal with class actions.
Given the possible payout, it will be uneconomic for most bodies corporate to seek legal advice on the issue.
In the absence of specific guidance, it may be appropriate for bodies corporate at their next AGM to approve the Committee's actions, thus putting the issue beyond doubt.
January 2021
© PELEN 2021
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