Courts should not be used in petty quarrels, says judge

Mediation can resolve condo management issues, judge adds

The High Court has dismissed an applicant's bid to declare that last year's annual general meeting at the Caribbean at Keppel Bay condominium (above) had been improperly adjourned. ST PHOTO: CHONG JUN LIANG
The High Court has dismissed an applicant's bid to declare that last year's annual general meeting at the Caribbean at Keppel Bay condominium (above) had been improperly adjourned. ST PHOTO: CHONG JUN LIANG

The High Court, in a ruling on Wednesday, has sent a message to the management councils of more than 2,000 entities, including condominiums.

It is that the court will rule in favour of the chairman whose decisions at general meetings are challenged in court, unless they are made in bad faith.

Justice Lee Seiu Kin, in making the point, noted that most management councils are not run by lawyers or people with extensive experience in running meetings.

"They are volunteers who step up to help administer their estate," he said in judgment grounds dismissing an applicant's bid to declare that the 2019 annual general meeting (AGM) at the Caribbean at Keppel Bay condominium had been improperly adjourned.

"The court will take this into account in considering the conduct of chairpersons of general meetings under the Act and will, unless there has been bad faith, lean in favour of the chair," he added, referring to the Building Maintenance and Strata Management Act.

Justice Lee deemed this important "to discourage the use of the courts in petty quarrels among residents which ought to be resolved through mediation, or by simply voting the delinquent management council out at the next annual general meeting".

It will also save legal costs in court action by the management corporation, expenses that ultimately have to be borne by all subsidiary proprietors, he said.

In addition, "it will not discourage people from volunteering to serve in the management council in the spirit of community responsibility, which is a very important principle for the successful governance of entities under the Act".

The Caribbean at Keppel Bay condominium had held its 13th AGM on Aug 3 last year, chaired by Ms Lee Chuen T'ng.

It was adjourned to Oct 19 last year because it ran out of time, with 19 motions left unaddressed. Also, by then, 10 out of the 11 spots for the 13th management council had been filled.

Plaintiff Chan Sze Ying, whose application against the adjournment was dismissed by Justice Lee, was one of the 10 elected to the 13th council.

Ms Lee had tied with another candidate for the 11th spot. But before the tie could be broken with fresh voting on the two candidates, she adjourned the AGM.

The judge noted that Ms Lee, in her opening address at the AGM, had said 2018 was a particularly harrowing year for the management council, with reports of quarrels among the residents, legal actions and multiple complaints of both verbal and physical varieties, among other things.

"Despite her calls for a return to the idyllic and peaceful state of yesteryear, the AGM itself proved to be yet another occasion for conflict and acrimony," Justice Lee said.

He also noted the "extensive explanations" and "defensive posturings", where "personal grievances, legitimate or otherwise, hijacked the discussion for extended periods of time".

"Accusations of 'draconian' mismanagement, tokenistic engagement with the residents ('fake dialogue') and opaque governance pockmarked the proceedings," he added in his 30-page judgment.

Ms Chan, through lawyers Joseph Lee and Dickson Chew, applied to the High Court to declare the AGM had been improperly adjourned and that it had actually concluded on Aug 3 last year. She also sought a declaration that those elected at the AGM had taken office on that day, which was rejected by the court.

Dentons Rodyk & Davidson lawyers, led by Mr Ling Tien Wah, argued for Ms Lee while the management corporation was defended by Mr Chew Kei-Jin and Ms Stephanie Tan.

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A version of this article appeared in the print edition of The Straits Times on May 02, 2020, with the headline Courts should not be used in petty quarrels, says judge. Subscribe