Owners Corporation Plan No. SP020966P v Memart Investments Pty Ltd

The Court held that an owners corporation lacks standing and capacity under the Owners Corporation Act 2006 (Vic) to acquire an interest in land outside the strata plan by adverse possession, as there is no power under the OCA for an owners corporation to obtain freehold title to external land, and the statutory requirement for a special resolution under s 15 to obtain a lease or licence cannot be circumvented by possessory claims. The Court also held that deeds of assignment from lot owners to the owners corporation could not enhance the OC's standing beyond its statutory functions and powers. On the facts, the evidence of use of the tennis court and garden was insufficient to establish adverse possession, particularly where both witnesses called by the plaintiffs acknowledged knowledge of the lease throughout the relevant period, and Jones v Dunkel inferences were drawn against the plaintiffs for failing to call additional witnesses.