› Flat Chat Strata Forum › Levies and Unit Entitlements › Can an owner quarantine their levies? › Current Page
There are provisions under Section 90 of NSW strata law (below) that if costs are awarded against the OC and in favour of the owner, then a special levy has to be raised to cover the costs and the ‘winning’ owner doesn’t have to contribute.
Therefore there is no need to ‘quarantine’ the owner’s levies – if she wins, she doesn’t have to pay.
I’m curious about the ‘pecuniary interest’ consideration, even though it was moot. I’m not sure that simply being in dispute with the Owners Corp is a conflict of interest, as all the committee members are effectively in the same boat.
90 CONTRIBUTIONS FOR LEGAL COSTS AWARDED IN PROCEEDINGS BETWEEN OWNERS AND OWNERS CORPORATION
(1) This section applies to proceedings brought by one or more owners of lots against an owners corporation or by an owners corporation against one or more owners of lots (including one or more owners joined in third party proceedings).
(2) The court may order in the proceedings that any money (including costs) payable by an owners corporation under an order made in the proceedings must be paid from contributions levied only in relation to the lots and in the proportions that are specified in the order.
(3) The owners corporation must, for the purpose of paying the money ordered to be paid by it, levy contributions in accordance with the terms of the order and must pay the money out of the contributions paid in accordance with that levy.
(4) This Division (other than provisions relating to the amount of contributions) applies to and in respect of contributions levied under this section in the same way as it applies to other contributions levied under this Division.