@Millie said:
Has anyone ever heard of the NCAT/CTTT ever issuing orders blocking an Owners Corporation spending monies on Legal Fees? Does anyone know of a section of the SSMA under which we could apply for an order?
The Act says you can’t spend money on legal action of more than $12,500 or $1,000 per unit (whichever is less) without agreement at a properly convened general meeting. NCAT probably won’t prevent the spending but if it has been done without proper authority, any owner could apply to make sure the people who organised the unathorised spending were held personally liable for doing so.
You could however, try to get an interim order but the money hasn’t really been spent until the bills come in and are paid. A letter from a strata lawyer explaining the law and the consequences of ignoring it might have the effect you desire.
By the way, cases are often thrown out of court these days when the defence argues that the legal fees have not been agreed at a general meeting therefore the action is illegal. Any EC or office bearer who takes legal action without proper authority (except in a genuine emergency, for which permission is given retrospectively) deserves having to pick up the tab themselves.