Owners Strata Plan 62327 v Vero

Owners Strata Plan 62327 sued Vero, alleging breaches of duty by the defendant in their capacity as the property manager of a strata scheme. The matter was ultimately discontinued by agreement of both parties. Owners sought an order for costs against Vero, arguing that Vero had acted unreasonably and that the outcome of the proceeding could have been predicted without the need for a trial. Vero contended that the proceedings contributed to the settlement of the dispute and that an order for costs should not be made. The court had to determine whether the parties had acted reasonably in the circumstances and whether the outcome could have been predicted without a trial. Additionally, the court needed to decide whether the proceedings were a factor leading to settlement and whether interest should be payable on the costs.

The court examined the conduct of both parties, considering the reasonable steps taken to resolve the dispute and the possibility of predicting the outcome without a trial. It found that both parties had acted reasonably and that a hypothetical trial would not have provided a clear prediction of the outcome. The court also noted that the proceedings had contributed to the settlement of the dispute, which was a factor in its decision not to make an order for costs. In relation to interest on costs, the court held that it was appropriate to award interest on the costs from the date the discontinuance was entered.

In summary, the court dismissed the application for an order for costs, finding that both parties had acted reasonably, that the outcome could not have been predicted without a trial, and that the proceedings had contributed to the settlement. The court also ordered that interest be payable on the costs from the date of the discontinuance.