MacDermott v Wang

The applicants in this matter sought orders under the Strata Schemes Management Act 1996 (NSW) for interim and substantive relief. The applicants argued that the respondents had breached the Act by failing to pay levies. The respondents denied the allegations and counterclaimed for costs. The applicants subsequently withdrew their substantive application. The court was required to consider whether there were special circumstances in each proceeding warranting a costs order, and if so, what order should be made.

The court considered the conduct of the parties in each proceeding, and whether the applicants' applications were frivolous, vexatious, or an abuse of process. The court found that there were no special circumstances warranting a costs order in the interim proceeding, and dismissed the respondents' application for costs. In the substantive proceeding, the court found that the applicants' application was not frivolous, vexatious, or an abuse of process, but that the applicants had withdrawn their application after the respondents had incurred costs in defending the application. The court considered this conduct to be a special circumstance warranting a costs order, but limited the order to the costs of the hearing of the interim orders application.

The court exercised its discretion under the applicable costs legislation to order the applicants to pay the respondents' costs of and incidental to the hearing of the interim orders application on 6 September 2021 on the ordinary basis as agreed or as assessed in accordance with the applicable costs legislation. Otherwise, each party was to bear their own costs of the proceeding.