Question: Who can be held liable in a Bullying and Harassment case by a tenant in a Strata development? Does the COO need to take out an insurance cover against such claims?
Answer: Under the Strata Titles Act there is no relationship between the strata company and a tenant.
Who can be held liable in a Bullying and Harassment case by a tenant in a Strata development?
Brian Rulyancich:
Under the Strata Titles Act there is no relationship between the strata company and a tenant. The relationship exists between the owner of a lot and his or her tenant in this instant the tenant as the occupier of the lot is contravening the following by-law:
Schedule 2 – Governance item 4 Behaviour of owners and occupiers.
An owner or occupier of a lot must be adequately clothed when on common property and must not use language or behave in a manner likely to cause offence or embarrassment to an owner or occupier of another lot or to any person lawfully using common property.
The strata company would need to issue the appropriate notices to the owner of the lot detailing what the behaviour of their tenant and what needs to be done to rectify the situation. If it continues it go to SAT for an order and possible fine.
Also due to the nature of the incident it may also be a Police matter.
Does the COO need to take out an insurance cover against such claims?
Tyrone Shandiman:
Strata Insurance policies provide covers to assist a strata corporation in the event a bullying and harassment claim is made against them.
The following sections in most strata policies should be considered by the strata corporation:
- Legal Defence Expenses covering Legal fees, costs, and expenses incurred in legal proceedings initiated against the strata corporation. It should be noted that this cover is limited to the costs associated with defence costs only and does not extend to cover settlements, judgements or damages. Cover under this section is not an “open cheque book” and a claim is only indemnified if the strata corporation can demonstrate there are reasonable prospects of a successful defence.
- Office Bearers Liability insurance which covers claims made against office bearers in the event a legal claim for bullying & harassment. This section extends to both defence costs and settlements, judgements or damages.;
The Strata Corporation should seek advice from their insurance adviser on cover available for bullying & harassment claims in their strata policy if they believe their cover is specifically required for this risk exposure.
This post appears in the July 2021 edition of The WA Strata Magazine.
Brian Rulyancich StrataTAC E: strata@stratatac.com.au P: 0428 970 067
Tyrone Shandiman Strata Insurance Solutions E: tshandiman@iaa.net.au P: 07 3899 5129
This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisernet Australia AFSL No 240549, ABN 15 003 886 687.