McClatchey v The Owners of Strata Plan No. 91138

McClatchey brought an action against the owners of Strata Plan No. 91138 seeking damages for alleged breaches of duty under the Strata Schemes Management Act 2015 (NSW). The dispute centred on whether the owners corporation had adequately maintained common areas and whether it had fulfilled its obligations under the Act. The matter was heard in the Civil and Administrative Tribunal of New South Wales.

The primary legal issue before the court was whether the respondent should be ordered to pay the applicant's costs for the period in which the proceedings were not determined on the merits due to a compromise. Additionally, the court needed to determine whether special circumstances existed that would justify deferring the insurance claim made by the owners corporation under section 106(4) of the Act.

The court found that, because the proceedings were not determined on the merits due to a compromise between the parties, the respondent should bear the costs of the applicant for the specified period. The court held that there were no special circumstances warranting a deferral of the insurance claim. It noted that the compromise did not affect the respondent's liability for costs during the relevant period. Therefore, the respondent was ordered to pay the applicant's costs from 25 September 2024 to 20 December 2024 on the ordinary basis, as agreed or assessed. All other costs of the proceedings were to be borne by each party.