Body Corporate Application to set aside Costs Agreement dismissed due to standing

Body Corporate for 211 Ron Penhaligon Way Offices CTS 25277 v MBA Lawyers [2019] QSC 314

PROFESSIONS AND TRADES – LAWYERS – REMUNERATION – COSTS AGREEMENTS – OTHER MATTERS

This was an application to set aside a solicitors’ costs agreement pursuant to s 328 of the Legal Profession Act 2007 (Qld) for failure to comply with the disclosure requirements of ss 308(1)(c) and 308(1)(d) of that Act

Importantly in the second paragraph it was noted that the proceedings where not brought forward by special resolution of the Committee and was brought by disgruntled lot owners. [2] Under Section 312 of the BCCM Act a Body corporate my only start a proceeding by Special Resolution. There was a change in control of the Body Corporate where a Special Resolution was held to engage the Respondent in a previous action subject to the Costs Agreement. This action to set aside the Costs Agreement was not authorised by Special Resolution.

Accordingly it was determined by Douglas J that the Body Corporate did not have standing to bring these proceedings and that it was not necessary to determine the efficacy of the arguments in respect to alleged (minor) failures to comply with the Legal Profession Act. There was also an Application to transfer proceedings in the Southport Magistrates Court for the Appointment of a Costs Assessor however this was also not dealt due to the finding that the Body Corporate did not have standing to commence proceedings.