The Owners - Strata Plan No 87639 v Karimbla Properties (No4) Pty Ltd (No 2) [2025] NSWSC 107

The Owners - Strata Plan No 87639 v Karimbla Properties (No4) Pty Ltd (No 2) [2025] NSWSC 107

There is no reason to believe the Owners Corporation could not, within a reasonable time, meet an adverse costs order by raising levies from lot owners, and further, discretionary factors—principally the defendant's delay and absence of evidence of incapacity or recalcitrance—warrant dismissal of the security for costs application.

Parties
Plaintiff/respondent: The Owners - Strata Plan No 87639; First Defendant: Karimbla Properties (No4) Pty Ltd ACN 102165195; Second Defendant/first Applicant: Karimbla Construction Services Pty Ltd ACN 093419875; Third Defendant/second Applicant: Karimbla Construction Services Pty Ltd (NSW) ACN 152212809
Jurisdiction
Australia
Judgment Date
19 February 2025
Procedural Posture
Notice of Motion for Security for Costs / Interlocutory Application Determined
Outcome
Defendants' application for security for costs dismissed with costs
Legal Topics
Security for Costs, Owners Corporation, Costs Orders, Litigation Procedure
Civil Procedure Equity Construction Law Security for Costs Owners Corporation Costs Orders Litigation Procedure

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Parties

The Owners - Strata Plan No 87639

Plaintiff/respondent

Karimbla Properties (No4) Pty Ltd ACN 102165195

First Defendant

Karimbla Construction Services Pty Ltd ACN 093419875

Second Defendant/first Applicant

Karimbla Construction Services Pty Ltd (NSW) ACN 152212809

Third Defendant/second Applicant

Procedural Posture

Notice of Motion for Security for Costs / Interlocutory Application Determined

Legal Issues

  1. 1 Whether there is reason to believe the Owners Corporation could not meet an adverse costs order
  2. 2 Whether security for costs should be ordered as a matter of discretion in major owners corporation litigation

Ratio Decidendi

There is no reason to believe the Owners Corporation could not, within a reasonable time, meet an adverse costs order by raising levies from lot owners, and further, discretionary factors—principally the defendant's delay and absence of evidence of incapacity or recalcitrance—warrant dismissal of the security for costs application.

Court Disposition

Defendants' application for security for costs dismissed with costs

Orders

  • The defendants' Notice of Motion of 14 November 2024 is dismissed with costs