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No Limitation on Recovery of Levies by Bodies Corporate

Monday, 27 August 2018

The Queensland Court of Appeal has unanimously overturned a decision of the District Court and held that s 145(2) of the Body Corporate and Community Management (Standard Module) Regulation 2008 does not impose a limitation period of two years and two months to commence recovery proceedings for outstanding contributions.

The Court of Appeal said that while the section creates a duty which requires a body corporate to start proceedings within two months (if contributions have been outstanding for two years), it does not impose a limitation period.

This means the usual limitation period of 6 years, as provided by the Limitation of Actions Act, applies (as had been understood within the industry, prior to the decision of the District Court overturned by this appeal).

We expect this decision to be welcomed by Bodies Corporate, as understandable concern had been expressed within the industry regarding practical difficulties created by a limitation period of two years and two months.”

For more information please contact Partners, Joe Welch at welchj@hickeylawyers.com.au or Damien Hodgson at hodgsond@hickeylawyers.com.au.

 

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