Zhang v Chehade

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Civil and Administrative Tribunal


New South Wales

Medium Neutral Citation: Zhang v Chehade [2021] NSWCATCD 105
Hearing dates: On the papers
Date of orders: 6 October 2021
Decision date: 06 October 2021
Jurisdiction:Consumer and Commercial Division
Before: G Sarginson, Senior Member
Decision:

(1) An oral hearing on the issue of costs is dispensed with under s 50 (2) of the Civil and Administrative Tribunal Act 2013 (NSW).

(2) The costs application in Matter SC 21/17244 is dismissed.

(3) No order for costs is made in Matter SC 21/17244 on the basis that each party should bear its own costs of Matter SC 21/17244 in accordance with Section 60 (1) of the Civil and Administrative Tribunal Act 2013 (NSW).

Catchwords:

COSTS — Strata Schemes — Application for interim orders dismissed — Whether special circumstances — Whether any special circumstances warrant costs order

Legislation Cited:

Civil and Administrative Tribunal Act 2013 (NSW)

Strata Schemes Management Act 2015 (NSW)

Cases Cited:

Islam v Metricon Homes Pty Ltd [2018] NSWCATAP 116

The Owners-Strata Plan No 63731 v B & G Trading Pty Ltd (No 2) [2020] NSWCATAP 273

Texts Cited:

Nil

Category:Costs
Parties: Wei Zhang (Applicant)
Rabie Chehade (First Respondent)
Strata Building Management Pty Ltd (Second Respondent)
The Owners - Strata Plan No. 10579 (Other party)
Representation: Solicitors:
Weinberger Lawyers (Other party)
File Number(s): SC 21/17244
Publication restriction: Nil

REASONS FOR DECISION

  1. This is a costs application from a decision of the Tribunal on 4 June 2021 dismissing an application for interim orders under s 231 of the Strata Schemes Management Act 2015 (NSW) (‘the SSMA’).

  2. Mr Zhang is a Lot owner in a strata scheme located in Lansvale NSW. Mr Theo Trigas is another Lot owner in the strata scheme.

  3. On 21 August 2020 the owners corporation held an Annual General Meeting (‘AGM’)

  4. At the time of the 2021 AGM, Ms Carroll of Len Robinson Strata & Community Management was the strata managing agent of the owners corporation.

  5. At the 2020 AGM a strata committee was elected. The Minutes of the AGM state that Mr Zhang and Mr Theo Trigas were elected to the strata committee along with 5 other persons.

  6. The Minutes state that in respect of the appointment of a strata manager (Motion 18):

“IT WAS RESOLVED that the Owners Corporation defer the appointment of Len Robinson Strata Management and that the strata committee will determine”

  1. The Minutes of the AGM further state that a strata committee meeting was held immediately following the AGM. The Minutes state that Mr Theo Trigas was elected as Secretary; Mr R. Stambolis was elected as Chairperson; and Mr J. Baba was elected as Treasurer.

  2. On 22 October 2020, Mr Theo Trigas sent out an email to other strata committee members with the heading “General Meeting”. The email stated that there were 3 items on the Agenda as follows:

  1. Motion 1-Terminate the strata managing agency agreement with Len Robinson Strata & Community Management.

  2. Motion 2-The owners corporation resolve to appoint a new strata managing…

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Details
Case
[2021] NSWCATCD 105
Decision Date

CaseChat Overview and Summary

The applicants, Zhang and two others, brought an application in the Civil and Administrative Tribunal of New South Wales against the respondents, Chehade and another, seeking interim orders in relation to a strata scheme. The applicants were residents of the strata scheme and sought to prevent the respondents from proceeding with a proposed development. The dispute centred on the respondents' alleged non-compliance with the strata scheme's rules and regulations, as well as their failure to obtain necessary approvals for the proposed development. The applicants argued that the proposed development would cause significant harm to the strata scheme and its residents.

The primary legal issue before the court was whether the applicants had demonstrated special circumstances that warranted an order for costs in their favour. The court considered the applicants' submissions and evidence, including their argument that the respondents had acted in bad faith and had caused unnecessary delay and expense. The court also examined the relevant legislation, including the Civil and Administrative Tribunal Act 2013 (NSW), which governs the costs orders in the Tribunal. The court found that the applicants had not demonstrated any special circumstances that would warrant a costs order in their favour. The court noted that the applicants' case was not particularly complex or unusual, and that the respondents had acted reasonably in pursuing their proposed development.

In dismissing the application for costs, the court held that there were no special circumstances that warranted a costs order in favour of the applicants. The court found that the applicants had not shown that the respondents had acted in bad faith or had caused unnecessary delay or expense. The court also noted that the applicants had not demonstrated that they had suffered significant harm as a result of the respondents' actions. The court concluded that each party should bear its own costs of the proceedings in accordance with Section 60 (1) of the Civil and Administrative Tribunal Act 2013 (NSW). The court further noted that an oral hearing on the issue of costs was not necessary, as the application could be determined on the available evidence and submissions.

Orders

Orders of the court

(1) An oral hearing on the issue of costs is dispensed with under s 50 (2) of the Civil and Administrative Tribunal Act 2013 (NSW).

(2) The costs application in Matter SC 21/17244 is dismissed.

(3) No order for costs is made in Matter SC 21/17244 on the basis that each party should bear its own costs of Matter SC 21/17244 in accordance with Section 60 (1) of the Civil and Administrative Tribunal Act 2013 (NSW).

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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