Commencement of Proceedings – Interpretation and Limitation Period – Update

By |2022-06-29T11:52:34+10:003-8-18|

In October 2017, I published this article: Commencement of Proceedings – Interpretation and Limitation Period – Update

An update.

On 31 July 2018, the Court of Appeal unanimously overturned the earlier decision of Judge Durward and said unequivocally that the purpose and effect of the two-year, two-month period provided for in the Regulating Module is to compel the body corporate to bring a proceeding; rather than to impose a time limit.

As such, the six year period as provided for by section 10 of the Limitations of Actions Act properly regulates the limitation period in which a body corporate can commence proceedings.

To the extent your body corporate has deferred commencing proceedings or has made decisions not to commence proceedings relying on the earlier District Court decision, I recommend those decisions be reviewed in light of the Court of Appeal authority.

If you would like to discuss interpretation and limitation periods or any of the above further, we are more than happy to assist.

Please telephone either Troy Hawthorn or Andrew Suttie on (07) 3226 3944 or email trh@nicholsons.com.au or ajs@nicholsons.com.au.

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