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John Goubran & Associates Pty Ltd ACN 070 974 819 v The Owners – Strata Plan 57150 [2026] NSWDC 9.
On 1 July 2025, an amendment to section 106(6) of the Strata Schemes Management Act 2015 (NSW) (Act) came into effect, extending the limitation period to bring claims for reasonably foreseeable loss arising from a breach of the statutory duty to properly repair and maintain the common property contained in section 106(1) of the Act from 2 to 6 years. See our previous Limebite for more information on this amendment.
On 25 February 2026, in John Goubran & Associates Pty Ltd ACN 070 974 819 v The Owners – Strata Plan 57150 [2026] NSWDC 9, Judge Cole found that this limitation period would not operate retrospectively, and only applied to existing rights and obligations as at 1 July 2025.
His Honour adopted the reasoning of the High Court in Rodway v R [1990] HCA 19 and Maxwell v Murphy [1957] HCA 7 that a statute should not be applied retrospectively where it would affect a party’s existing rights or obligations, unless it is clearly intended by the language of the statute.
In Goubran v The Owners, the plaintiff argued that, as its claim under the Act was relevantly amended on 14 July 2025, being after the commencement of the new section 106(6), it was therefore brought within time. His Honour rejected this argument and found the plaintiff’s cause of action for a breach of section 106(1) began on 14 December 2021, and thus expired on 15 December 2023 pursuant to the then-existing limitation period of 2 years, and well before 1 July 2025. As such, Judge Cole held the plaintiff’s claim under section 106(6) was brought well out of time, with the new limitation period not applying retrospectively
Interestingly, the plaintiff was nevertheless entitled to damages from the Owners Corporation in negligence, due to the applicable 6-year limitation period for tortious claims. It remains to be seen whether this decision will give rise to an increase in the number of claims by lot owners against Owners Corporations for loss and damage in negligence in the NSW courts, rather than for breach of statutory duty brought in NCAT.
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