The Owners - Strata Plan 82089 v Omaya Holdings Pty Ltd (No 4)

The Owners - Strata Plan 82089, the plaintiff, brought an action against Omaya Holdings Pty Ltd, the defendant, in the Supreme Court of New South Wales. The dispute involved a complex strata plan issue, focusing on the interpretation of certain strata titles and the rights and obligations of the parties under the relevant legislation. The case was the fourth in a series of related proceedings, each addressing different aspects of the overarching strata title dispute. The plaintiff sought declarations, injunctions, and damages, while the defendant denied liability and counterclaimed.

The court was required to address the issue of costs, specifically whether the general rule that costs follow the event should apply in light of the multiple discrete issues at stake. Additionally, the court had to determine whether the decision on costs should be deferred pending the reference of the remaining issues. The court also needed to consider the basis of quantification of the costs, particularly whether the defendants were entitled to indemnity costs following an offer of compromise made before the hearing.

In determining the costs, the court held that the general rule that costs follow the event should apply, but the decision on the costs should be deferred pending the reference of the remaining issues. The court emphasised that each issue should be considered separately, and the outcome of one issue should not necessarily dictate the outcome of another. Regarding the basis of quantification, the court found that the defendants were entitled to indemnity costs following the offer of compromise. The court reasoned that the offer of compromise was a significant factor in the proceedings and justified the award of indemnity costs.

The court ordered that the plaintiff bear the costs of the proceeding up to the point of the offer of compromise, and that the defendants be entitled to indemnity costs thereafter. The decision on the costs was deferred pending the reference of the remaining issues, and the parties were directed to provide further submissions on the costs once those issues were resolved.