› Flat Chat Strata Forum › Strata Committees › Schemes must raise losing case expenses by special levy › Current Page
An owners corporation that is unsuccessful in an action brought against it in NCAT… cannot use the administrative or capital works funds to pay its costs and expenses. It may raise a special levy, but cannot levy a successful owner for a share (s104 SSMA 2015).
That seemes to be true. Let’s look at what Section 104 says:
(1) An owners corporation cannot, in respect of its costs and expenses in proceedings brought by or against it for an order by the Tribunal, levy a contribution on another party who is successful in the proceedings.
(2) An owners corporation that is unsuccessful in proceedings brought by or against it for an order by the Tribunal cannot pay any part of its costs and expenses in the proceedings from its administrative fund or capital works fund, but may make a levy for the purpose.
This is interesting in that it doesn’t define “costs” as being sums awarded by a tribunal to one side or another.
So it seems to be saying, and I hope someone will correct me if I’m wrong, that if an owners corp gets into a stoush with an owner and loses at NCAT, it has to raise a special levy to cover its costs for the case and the resident must be excluded from the special levy.
If that’s the case, it’s an elegant deterrent against strata committees routinely running residents through the tribunal treadmill to impose their will, right reason or none.
The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
- This reply was modified 2 years, 7 months ago by .