Coshott v The Owners SP No 48892

In Coshott v The Owners SP No 48892, the dispute arose between the unit owner, Coshott, and the body corporate of a strata scheme, Owners SP No 48892, over unit levies. The case was heard in the Local Court of New South Wales. Coshott had been ordered to pay unit levies, but upon failing to do so, a default judgment was entered against them. Subsequently, the body corporate obtained a garnishee order against Coshott's bank account, leading to the deduction of funds. However, the default judgment was later set aside, and Coshott sought the repayment of the amounts deducted.

The primary legal issue before the court was whether Coshott could recover the funds deducted from their bank account after the default judgment was set aside. This involved understanding the nature of the garnishee order and the effect of setting aside a default judgment on the recovery of costs. The court had to determine if the body corporate was entitled to retain the funds on the basis that they were for unit levies or if Coshott could reclaim the money on the grounds that the judgment had been improperly entered and subsequently set aside.

The court found that the body corporate could not retain the funds once the default judgment was set aside. It held that the payment of the levies following the garnishee order constituted money had and received at common law, which was recoverable by Coshott. The court emphasised that once a judgment is set aside, any money paid under that judgment becomes recoverable. Additionally, the Local Court was deemed to have jurisdiction to order the repayment of these funds. The decision underscored the importance of ensuring that legal proceedings are conducted properly to avoid unjust enrichment.

As a result, the court ordered the body corporate to repay the funds deducted from Coshott's bank account, along with interest. This ruling reinforced the principle that once a default judgment is set aside, any money paid under that judgment must be returned, and highlighted the Local Court's role in overseeing such disputes within strata schemes.