Perpetual Corporate Trust Ltd v Owners Corporation SP6534; El Khouri v Owners Corporation SP6534 (No 2) [2024] NSWSC 358

Because the proceedings produced mixed results and some claimed recovery expenses would duplicate recoverable litigation costs, the Court exercised its broad costs discretion to reach a just and equitable costs outcome. The Owners Corporation reasonably did not accept the Executors' settlement offers because the offers required special resolutions and adequate notice, so the Executors were not entitled to indemnity costs; given their failure on the central declaration sought and the Owners Corporation's success on the cross-claim, there was no order as to costs on the statement of claim and the Executors were ordered to pay the Owners Corporation's costs of the cross-claim. Perpetual...

Jurisdiction: Australia
Judgment Date: 08 April 2024
Procedural Posture: Costs, Interest and Recovery Expenses Following Primary Judgment in Equity Proceedings Involving Strata Scheme by Laws and Levies / On the Papers; Outstanding Orders After Primary Judgment
Outcome: Outstanding questions of costs, interest and recovery expenses determined; ordinary costs and interest orders made, indemnity costs refused, and recovery expenses not separately awarded or referred to a referee.
Legal Topics: ['costs Assessment' 'mixed Results in Claims and Cross Claims' 'calderbank Offers' 'interest on Unpaid Strata Levies' 'recovery Expenses Under the Strata Schemes Management Act 2015 (nsw)' 'common Property Rights by Law']

['costs' 'strata Law' 'equity'] ['costs Assessment' 'mixed Results in Claims and Cross Claims' 'calderbank Offers' 'interest on Unpaid Strata Levies' 'recovery Expenses Under the Strata Schemes Management Act 2015 (nsw)' 'common Property Rights by Law']

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Procedural Posture

Costs, Interest and Recovery Expenses Following Primary Judgment in Equity Proceedings Involving Strata Scheme by Laws and Levies / On the Papers; Outstanding Orders After Primary Judgment

Legal Issues

1 ['What costs orders should be made in proceedings 2018/93444 where the Executors had partial success on the statement of claim and the Owners Corporation had limited but substantial success on the cross-claim.' "Whether the Executors' without prejudice offers justified indemnity costs against the Owners Corporation." 'What interest and recovery expenses were payable by the Executors under ss 86(2A) and 145(3) of the Strata Schemes Management Act 2015 (NSW).' 'What costs orders should be made in proceedings 2022/98817 where Perpetual succeeded on its primary claim and both parties sought no order as to costs on the cross-claim.' "Whether Perpetual's Calderbank offer justified indemnity costs against the Owners Corporation." 'What interest and recovery expenses were payable by Perpetual under s 86(2A) of the Strata Schemes Management Act 2015 (NSW).']

Ratio Decidendi

Court Disposition

Outstanding questions of costs, interest and recovery expenses determined; ordinary costs and interest orders made, indemnity costs refused, and recovery expenses not separately awarded or referred to a referee.

Orders

['In proceedings 2018/93444 (Executors v Owners Corporation), each party is to pay its own costs of the statement of claim.' "In proceedings 2018/93444, the Executors are to pay the Owners Corporation's costs of the cross-claim." 'In proceedings 2018/93444, the Executors are to pay the Owners Corporation $16,827.85...