The Owners - Strata Plan 87003 v Raysons Constructions Pty Ltd (No 2)

In the Supreme Court of New South Wales, the plaintiff, The Owners – Strata Plan 87003, brought an action against Raysons Constructions Pty Ltd for damages arising from alleged breaches of contract and duty of care in relation to construction work on a strata title property. The matter was heard by the Court of Appeal, following an initial decision by the lower court.

The primary legal issue before the Court of Appeal was whether a certificate under the Suitors’ Fund Act 1951 (NSW) should be granted to the unsuccessful respondent, Raysons Constructions Pty Ltd. The Act provides for the payment of costs to a respondent who successfully appeals against a decision that was erroneous and detrimental to their position. Raysons Constructions argued that the lower court’s decision was erroneous and that they were entitled to costs under the Act. The Owners – Strata Plan 87003 contended that the respondent’s submissions had led the lower court into error and that it was inappropriate to grant the certificate.

The Court of Appeal held that the lower court’s decision was indeed erroneous, but the respondent’s submissions had contributed to that error. Consequently, the Court found that it was not appropriate to grant a certificate under the Suitors’ Fund Act. The Court held that the respondent’s submissions had been unsuccessful and had led the lower court into error, and it was inappropriate to reward the respondent for their role in the erroneous decision. The Court of Appeal dismissed the appeal and ordered each party to bear their own costs of the appeal.