Bay Village Noosa has centre management termination reversed in Queensland Supreme Court

A company employed to manage Noosa’s iconic Bay Village shopping centre has appealed against its termination by a body corporate, saying it was invalid.

The Queensland Supreme Court has ruled against the body corporate of Hastings Street’s Bay Village after it terminated the managing agreement of the centre.

Judge Martin Daubney handed down his decision in Brisbane’s Supreme Court and said Breeze Mr Ptd Ltd was unfairly terminated.

The company was handed a termination letter in April 2021 by the committee under the hand of the chairman, treasurer and secretary.

The notice and the body corporate accused Breeze Mr of “gross negligence” and fund misappropriation.

Bay Village in Hastings Street. Picture: Geoff Potter

Court documents revealed a clause which said the agreement could be terminated if the manager was “guilty of gross negligence or gross misconduct” in performing duties or the letting service.

Breeze Mr appealed against the sacking and said the body corporate had failed to obtain authority of the lot owners to terminate the agreement by a resolution in their general meeting.

It was claimed however the termination was to be sourced in a resolution of the committee, with horns locked to determine whether the termination was valid.

In court documents the body corporate argued whether the dispute fell within the Supreme Court’s jurisdiction, but this was not accepted by Judge Daubney.

The body corporate argued that “a decision of the committee is a decision of the body corporate”.

Court documents say however they may only sack a person’s engagement as a service contractor “if the termination is approved by ordinary resolution of the body corporate”.

“In my opinion, the meaning and effect of those words could not be more clear,” Judge Daubney said.

In the absence of an ordinary resolution of the body corporate Judge Daubney said the decision was not properly passed by the body corporate.

He ruled terminating the management agreement was “of no force and effect”, with the body corporate ordered to pay 80 per cent of Breeze Mr’s indemnity costs which were to be decided.

The Bay Village body corporate has been contacted for comment.