Body Corporate of Marine Sands v Extra Dimensions 121 (Pty) Ltd and Another

Marine Sands is a mixed-use sectional title scheme in Durban. When the scheme was registered, the developer determined participation quotas and levy contributions in terms of s 32(2) of the Sectional Titles Act 95 of 1986 (STA), resulting in non-residential sections paying a lower proportion of levies than their floor area suggested. Extra Dimensions 121 (Pty) Ltd owned six non-residential units. After a period where levies were charged according to participation quotas, the body corporate adopted a special resolution in August 2012 purporting to modify levy contributions via amended conduct rules. This resulted in Extra Dimensions’ levy liability more than doubling, despite its registered participation quota remaining unchanged. Extra Dimensions did not consent to the resolution and objected to it. It applied to court to have the resolution and amended conduct rules declared invalid for non-compliance with s 32(4) of the STA.

The appeal was dismissed with costs. The special resolution modifying levy contributions and the consequent amendments to the conduct rules were confirmed to be invalid and of no force or effect.

The case authoritatively clarifies the meaning of 'adversely affected' in s 32(4) of the Sectional Titles Act. It affirms strong protection of sectional owners’ proprietary rights and limits the power of bodies corporate to alter levy liabilities without affected owners’ written consent. The judgment reinforces orthodox principles of statutory interpretation in South African law and rejects fairness-based reasoning divorced from statutory text.