Strata Plan 99960 v SPS Building Contractors Pty Ltd

The case of Strata Plan 99960 v SPS Building Contractors Pty Ltd was heard in the Supreme Court of New South Wales. The dispute arose between the plaintiff, an owners corporation representing the owners of a number of townhouses, and the defendant, a building contractor. The plaintiff claimed that the townhouses had defects that were the fault of the defendant, and sought damages for these defects. The defendant denied liability and counterclaimed for payment of outstanding invoices.

The primary legal issue before the court was whether the Court should exercise its inherent and statutory powers to order the plaintiff to provide security for costs. The plaintiff argued that it was unlikely to be able to meet an adverse costs order, given its financial situation. However, the defendant submitted that the Court should order security for costs, as the plaintiff was well-organised and had raised special levies in connection with the proceedings. The court needed to balance these competing considerations to determine whether the inherent and statutory powers to order security for costs were enlivened.

In determining the matter, the court held that the proceedings were not vexatious or oppressive and that the plaintiff was unlikely to be able to meet an adverse costs order. However, the court also found that the plaintiff was well-organised and had raised special levies in connection with the proceedings. These factors, along with the fact that the plaintiff had already paid a significant amount towards the defendant’s costs, led the court to conclude that the inherent and statutory powers to order security for costs were not enlivened. The application for security for costs was therefore dismissed.

No further orders were made by the court.