Mahoneys is currently acting for a caretaker in a termination dispute with a body corporate. Earlier in the dispute, Mahoneys secured (by consent of the body corporate) an injunction restraining the body corporate from terminating until the QCAT trial.
However, with the trial some 8 months away, the body corporate stopped paying the caretaker’s salary.
The caretaker could not afford to pay its employees or its repayments to the bank.
Unless the body corporate started paying again – and quickly – the caretaker’s business would fail.
The caretaker consulted Mahoneys about this problem in December.
Mahoneys successfully applied to QCAT for orders requiring the body corporate to pay the overdue caretaking salary and continue to pay the future caretaking salary without deduction.
The body corporate resisted – but, with our help, the caretaker prevailed.
With the cash flow returning to the caretaker’s business – and just before Christmas – the New Year is looking positive for the caretaker.
The tactic of ceasing payments to caretakers when in dispute is a recent phenomenon but it is one which we are now seeing a lot of.
It is a tactic that would be fatal to any financed management rights business.
We hope this decision will cause bodies corporate to think twice before deciding to cease payments.
At the very least, it demonstrates to caretakers in dispute with a body corporate that there are always options.
Consult expert management rights lawyers – early and always.
Mitchell Downes, Partner of Mahoneys, acted for the caretaker in this matter.