Quest Rose Hill Pty Ltd v The Owners Strata Plan No 64025

In this case, Quest Rose Hill Pty Ltd, a lessee of a unit in a strata complex, challenged the budget set by the Owners Corporation, The Owners Strata Plan No 64025, on the basis that it was unreasonable and included excessive levies. The matter was referred to a referee, whose report recommended the adoption of the budget with modifications. The lessee sought to overturn the referee's report, arguing that the referee had erred in not considering outstanding levies when determining the budget and that the Owners Corporation failed to draw the referee's attention to these levies. The Owners Corporation, in turn, argued that the lessee had not demonstrated that the referee had erred in law and that the lessee's claims for costs were unjustified.

The key legal issues before the court were whether the referee had erred in not considering the outstanding levies in determining the budget and whether the lessee had demonstrated a failure by the Owners Corporation to draw the referee's attention to these levies. Additionally, the court needed to determine the costs of the proceedings before the referee, the costs of notices of motion, and whether the second defendant had "surrendered" their right to be heard.

The court found that the referee had not erred in not considering the outstanding levies, as the lessee had not provided the Owners Corporation with the necessary information to enable the referee to do so. The court also held that the lessee was not entitled to the costs of the proceedings before the referee, as neither party had been successful. Regarding the costs of the notices of motion, the court ruled that the lessee was not entitled to those costs as the Owners Corporation's application had been successful. Finally, the court determined that the second defendant had not "surrendered" their right to be heard, as they had made a valid objection to the application for costs.

The court ordered that the lessee pay the costs of the Owners Corporation in relation to the proceedings before the court, and that the second defendant pay the Owners Corporation's costs of the notices of motion.