The Owners Strata Plan No 68976 v Nicholls (No 2) [2018] NSWSC 471

The Owners Strata Plan No 68976 v Nicholls (No 2) [2018] NSWSC 471

Given the EGM resolution which committed one lot owner to indemnify the Owners Corporation for adverse costs and the statutory discretion under s 90, costs payable by the plaintiff should be contributed by lots other than Lot 1, in proportion to their unit entitlements, except as indemnified by Parridale Pty Ltd; and defendants are not liable to contribute to plaintiff's costs.

Parties
Plaintiff: The Owners Strata Plan No 68976; First Defendant: Blair Milton Nicholls; Second Defendant: Liesel Von Molendorff
Jurisdiction
Australia
Judgment Date
19 April 2018
Procedural Posture
Costs Dispute / Post Hearing Written Submissions and Supplementary Orders
Outcome
Supplementary orders made regarding the apportionment of costs and contributions for legal costs.
Legal Topics
Costs, Strata Schemes, Contribution for Legal Costs
Civil Procedure Costs Strata Schemes Contribution for Legal Costs

Case Brief

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Parties

The Owners Strata Plan No 68976

Plaintiff

Blair Milton Nicholls

First Defendant

Liesel Von Molendorff

Second Defendant

Procedural Posture

Costs Dispute / Post Hearing Written Submissions and Supplementary Orders

Legal Issues

  1. 1 Operation of s 90 of the Strata Schemes Management Act 2015 (NSW) regarding contributions for legal costs
  2. 2 Effect of EGM resolution requiring indemnification of Owners Corporation by one lot owner
  3. 3 Whether defendants should be liable for plaintiff's costs as lot owners

Ratio Decidendi

Given the EGM resolution which committed one lot owner to indemnify the Owners Corporation for adverse costs and the statutory discretion under s 90, costs payable by the plaintiff should be contributed by lots other than Lot 1, in proportion to their unit entitlements, except as indemnified by Parridale Pty Ltd; and defendants are not liable to contribute to plaintiff's costs.

Court Disposition

Supplementary orders made regarding the apportionment of costs and contributions for legal costs.

Orders

  • Any costs payable by the plaintiff under Order 3 made on 6 March 2018 are to be paid from contributions levied in relation to Lots other than Lot 1, in shares proportional to the unit entitlements of the respective Lots other than Lot 1, except insofar as the costs are indemnified by Parridale Pty Ltd.
  • Any costs of the plaintiff incurred in these proceedings are not payable in any part by the defendants and no such costs may be paid from any administrative fund, sinking fund or capital works fund held by or on behalf of the plaintiff.