Owners Strata Plan 80877 v Lannock Capital 2 Pty Ltd (No 2) [2024] NSWSC 618

Owners Strata Plan 80877 v Lannock Capital 2 Pty Ltd (No 2) [2024] NSWSC 618

Where a party's involvement was appropriate but did not result in clear success or costs were not incurred as a result of a contest with the losing party, the court will generally order each party to bear their own costs; in contested issues where an unsuccessful party prosecuted a substantive issue alone or largely alone, that party may bear the other party's costs on that issue even if the ultimate ruling was not strictly necessary due to the main outcome.

Parties
Plaintiff: The Owners – Strata Plan No 80877; First Defendant: Lannock Capital 2 Pty Ltd; Second Defendant: Mr Anthony Stevens; Third Defendant: Commonwealth Bank of Australia; Fourth Defendant: Another Bucket of Worms Pty Ltd; Fifth Defendant: Westpac Banking Corporation; Sixth Defendant: Australia and New Zealand Banking Group; Seventh Defendant: Macquarie Bank Limited; Eighth Defendant: National Australia Bank Limited; Ninth Defendant: AFSH Nominees Pty Ltd
Jurisdiction
Australia
Judgment Date
22 May 2024
Procedural Posture
Equity Real Property List / Costs Ruling After Principal Judgment Refusing Termination Order
Outcome
Plaintiff to pay First Defendant's (Lannock's) costs; First Defendant to pay Mortgagee Defendants' costs; no order as to costs between Plaintiff and Second or Fourth Defendants.
Legal Topics
Costs, Strata Schemes, Priority of Interests, Termination of Strata Schemes
Equity Real Property Civil Procedure Costs Strata Schemes Priority of Interests Termination of Strata Schemes

Case Brief

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Parties

The Owners – Strata Plan No 80877

Plaintiff

Lannock Capital 2 Pty Ltd

First Defendant

Mr Anthony Stevens

Second Defendant

Commonwealth Bank of Australia

Third Defendant

Another Bucket of Worms Pty Ltd

Fourth Defendant

Westpac Banking Corporation

Fifth Defendant

Australia and New Zealand Banking Group

Sixth Defendant

Macquarie Bank Limited

Seventh Defendant

National Australia Bank Limited

Eighth Defendant

AFSH Nominees Pty Ltd

Ninth Defendant

Procedural Posture

Equity Real Property List / Costs Ruling After Principal Judgment Refusing Termination Order

Legal Issues

  1. 1 Whether the plaintiff should pay the costs of the Lot Owner and Lessee defendants
  2. 2 Whether the first defendant (Lannock) should pay the costs of the mortgagee defendants
  3. 3 How to apportion costs when parties were only partially opposed, or 'agnostic', on issues

Ratio Decidendi

Where a party's involvement was appropriate but did not result in clear success or costs were not incurred as a result of a contest with the losing party, the court will generally order each party to bear their own costs; in contested issues where an unsuccessful party prosecuted a substantive issue alone or largely alone, that party may bear the other party's costs on that issue even if the ultimate ruling was not strictly necessary due to the main outcome.

Court Disposition

Plaintiff to pay First Defendant's (Lannock's) costs; First Defendant to pay Mortgagee Defendants' costs; no order as to costs between Plaintiff and Second or Fourth Defendants.

Orders

  • Plaintiff to pay the First Defendant's costs of the proceedings on the ordinary basis, as agreed or assessed.
  • First Defendant to pay the Third, Fifth, Sixth, Eighth and Ninth Defendants' costs of the proceedings on the ordinary basis, as agreed or assessed.