The Owners Strata Plan No 66443 v Karimbla Constructions Services Pty Ltd (ACN) 093 419 875

The dispute involved the Owners Corporation of Strata Plan No 66443 against Karimbla Constructions Services Pty Ltd, the builders, concerning alleged defects in construction work. The case was heard in the Supreme Court of New South Wales, Local Division. The Owners Corporation sought rectification of numerous defects and associated costs, while the builders denied liability and sought a costs order if the proceedings were unsuccessful.

The central legal issues were whether the Owners Corporation was entitled to costs, and if so, the appropriate amount. The parties had come to a commercial settlement, but the Owners Corporation had abandoned a significant portion of their claims, while the builders agreed to rectify only a small proportion of the defects originally claimed. The Court had to determine the fairness of the settlement and the costs to be awarded.

The Court acknowledged that the parties had agreed that no reasons were required and that the Court was at liberty to fix the quantum of any orders. It noted that no issue of principle was at stake. The Court considered the nature of the settlement, the extent of the claims abandoned, and the proportion of defects rectified. It concluded that the Owners Corporation was entitled to a partial costs order, reflecting the partial success of their claims and the commercial nature of the settlement. The Court ordered that the Owners Corporation receive 60% of their costs, reflecting the partial success and the settlement reached.

The final orders included a direction for the builders to rectify the agreed-upon defects and a costs order in favour of the Owners Corporation for 60% of their costs, reflecting the partial success of their claims.