Management Corporation Strata Plan No 3602 v MacFadden: Liability for Leaks from Common Property under BMSMA
In Management Corporation Strata Plan No 3602 v MacFadden, the High Court of Singapore heard an appeal regarding the liability of a Management Corporation Strata Title (MCST) for water damage caused by a leak from a concealed rainwater downpipe, which was common property, into the unit of Declan Pearse MacFadden, a subsidiary proprietor (SP). The SP brought a claim before a Strata Titles Board (STB) seeking damages from the MCST for water damage and consequential losses. The High Court, overturning the STB's decision, held that the MCST is not strictly liable under s 29(1)(b) of the Building Maintenance and Strata Management Act (BMSMA) for such damages if it has acted reasonably. The court set aside the STB’s orders and awarded costs to the applicant.
1. Case Overview
1.1 Court
General Division of the High Court1.2 Outcome
Appeal Allowed
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
The High Court held that an MCST is not strictly liable for water damage from common property leaks under s 29(1)(b) of the BMSMA, requiring reasonable action.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Management Corporation Strata Plan No 3602 | Applicant | Corporation | Appeal Allowed | Won | Hong Heng Leong, Noh Bin Abd Hamid |
| MacFadden, Declan Pearse | Respondent | Individual | Appeal Dismissed | Lost | Phone Ko Canaan, Lim Kian Leng Malcolm |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Andre Maniam | Judge of the High Court | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Hong Heng Leong | Just Law LLC |
| Noh Bin Abd Hamid | Just Law LLC |
| Phone Ko Canaan | Tan & Lim |
| Lim Kian Leng Malcolm | Tan & Lim |
4. Facts
- A concealed rainwater downpipe in the Waterfall Gardens condominium leaked into the unit of the respondent subsidiary proprietor (SP).
- The pipe was common property and encased in a wall.
- The pipe was not visible and not shown in as-built drawings.
- The SP brought a claim before a Strata Titles Board (STB) seeking damages from the MCST for water damage and consequential losses.
- The STB held that there was no inordinate delay on the part of the MCST in establishing the cause of the leak and in repairing the pipe.
- The STB held that the MCST was liable even if it were unaware of the state of the pipe or maintenance thereof, and even if it had acted reasonably.
- The High Court found that the STB erred in deciding that it could award damages for breach of statutory duty and in deciding that the position under s 29(1)(b) of the BMSMA is one of strict liability.
5. Formal Citations
- Management Corporation Strata Plan No 3602 v MacFadden, Declan Pearse, Tribunal Appeal No 11 of 2021, [2021] SGHC 260
6. Timeline
| Date | Event |
|---|---|
| Hearing date | |
| Judgment date |
7. Legal Issues
- Breach of Statutory Duty
- Outcome: The court held that the STB erred in deciding that it could award damages for breach of statutory duty and in deciding that the position under s 29(1)(b) of the BMSMA is one of strict liability.
- Category: Substantive
- Related Cases:
- [2006] NSWSC 1157
- [2013] NSWCA 270
- [1992] 1 SLR(R) 201
- Strict Liability
- Outcome: The court held that s 29(1)(b) of the BMSMA does not create a situation of strict liability and that it does matter whether the MCST acted reasonably or not.
- Category: Substantive
- Related Cases:
- [2006] NSWSC 1157
- [2005] NSWCA 246
- [2001] BCSC 1342
- Damages for Breach of Statutory Duty
- Outcome: The court held that an STB does not have the power to award damages for breach of statutory duty; s 88 of the BMSMA gives that power to the court.
- Category: Procedural
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Statutory Duty
- Negligence
10. Practice Areas
- Strata Management Disputes
- Construction Law
- Civil Litigation
11. Industries
- Construction
- Real Estate
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Seiwa Pty Ltd v Owners Strata Plan 35042 | Supreme Court of New South Wales | Yes | [2006] NSWSC 1157 | New South Wales | Cited by the STB as authority for the proposition that s 29(1)(b) of the BMSMA imposes strict liability on MCSTs. Overruled on the breach of statutory duty point by The Owners Strata Plan 50276 v Thoo [2013] NSWCA 270. |
| The Owners Strata Plan 50276 v Thoo | New South Wales Court of Appeal | Yes | [2013] NSWCA 270 | New South Wales | Overruled Seiwa on the breach of statutory duty point, holding that a breach of s 62(1) of the NSW Act by an owners corporation does not give rise to an action for damages for breach of statutory duty. |
| Management Corporation Strata Title Plan No 586 v Menezes Ignatius Augustine | High Court | Yes | [1992] 1 SLR(R) 201 | Singapore | Rejected a claim for breach of statutory duty in relation to s 31(1) of the Land Titles (Strata) Act (Cap 158, 1985 Rev Ed), the equivalent of s 29(1)(b) of the BMSMA, prior to the introduction of s 88 of the BMSMA. |
| Ridis v Strata Plan 10308 | New South Wales Court of Appeal | Yes | [2005] NSWCA 246 | New South Wales | Considered the duty to maintain common property and held that it does not give rise to strict liability. |
| John Campbell Law Corp v Strata Plan 1350 | Supreme Court of British Columbia | Yes | [2001] BCSC 1342 | Canada | Concerned a blocked sewer pipe and held that a standard of reasonableness should be read into the duties imposed on a strata corporation by the legislation. |
| Chng Wei Meng v Public Prosecutor | N/A | Yes | [2002] 2 SLR(R) 566 | Singapore | Cited for the principle that a court should refrain from construing an offence as one of strict liability unless it can be shown that the creation of strict liability will be effective to promote the objects of the statute. |
| Loh Ngai Seng v The Management Corporation Strata Title Plan No 0581 (Pandan Valley Condominium) and another suit | N/A | Yes | [2019] SGMC 34 | Singapore | Certain residents sued their MCST because on a rainy night a tree had fallen onto their parked cars. The claim was brought in negligence, a particular of which was that the MCST had breached its duty under s 29 of the BMSMA. On the evidence, the claim was dismissed. It was (rightly) not suggested that the MCST was strictly liable, such that the mere fact of the tree falling would render the MCST liable. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Building Maintenance and Strata Management Act (Cap 30C, 2008 Rev Ed) | Singapore |
| s 29(1)(b), Building Maintenance and Strata Management Act (Cap 30C, 2008 Rev Ed) | Singapore |
| ss 101(1)–(3) of the BMSMA | Singapore |
| s 88 of the BMSMA | Singapore |
| Strata Schemes Management Act 1996 (NSW) | New South Wales |
| s 62(1) of the Strata Schemes Management Act 1996 (NSW) | New South Wales |
| Land Titles (Strata) Act (Cap 158, 1985 Rev Ed) | Singapore |
| s 31(1) of the Land Titles (Strata) Act (Cap 158, 1985 Rev Ed) | Singapore |
| Condominium Act, RSBC 1996, c 64 (Can) | Canada |
| s 34(1)(d) of the Condominium Act, RSBC 1996, c 64 (Can) | Canada |
| s 116(d) of the Condominium Act, RSBC 1996, c 64 (Can) | Canada |
15. Key Terms and Keywords
15.1 Key Terms
- Management Corporation Strata Title (MCST)
- Subsidiary Proprietor (SP)
- Common Property
- Strata Titles Board (STB)
- Building Maintenance and Strata Management Act (BMSMA)
- Strict Liability
- Reasonable Care
- Concealed Pipe
15.2 Keywords
- strata title
- management corporation
- common property
- leak
- strict liability
- BMSMA
- Singapore
16. Subjects
- Strata Management
- Property Law
- Civil Procedure
17. Areas of Law
- Strata Titles
- Building Maintenance and Strata Management Act
- Property Law